The new national law scheme introduces a significant reform for
the Co-operatives sector as it moves towards uniform legislation
regulating Co-operatives within each State and Territory. It aims
at empowering co-operatives, cutting costs and reducing red
The object of the Bill is to enact co-operatives legislation
applying in each State and Territory. It does so by introducing a
uniform legislative framework applying the Co-operatives National
Law in each State and Territory, with a view to overcome the issues
arising from separate legislation in each jurisdiction.
The Bill also contains the Co-operatives National Law which is
to be used as a template for all jurisdictions. This is to ensure
that legislation in each jurisdiction is based on the National Law
and that key principles of co-operation are retained.
Further to applying the Co-operatives National Law, the Bill
specifies local administration details, such as which courts deal
with various matters and how official notices are to be
Once the Bill is passed by each State and Territory, it will
effectively streamline compliance issues and reduce associated
business costs for co-operatives through the implementation of
uniform regulation and administration.
By applying a uniform scheme of legislation in each
jurisdiction, it will enable co-operatives intending to conduct
business across State and Territory borders to do so without the
costly and lengthy process of registration in each
Moreover, it will benefit smaller co-operatives through
simplified financial reporting to members as well as removing the
obligation to lodge publicly available accounts.
Now that the legislation has passed the NSW Parliament, it is
understood that each State and Territory will adopt, or make
regulations consistent with, the National Regulations.
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The most contentious change is that the transfer of assets must be part of a genuine restructure of an ongoing business.
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