Victoria Introduces Co-operatives National Law Application Bill 2013

The Victoria Government has recently introduced (5 February 2013) a Bill for an Act to repeal the Co-operatives Act 1996 and provide for the application of a proposed Co-operatives National Law in Victoria.

This legislation follows on agreement for a nationally uniform set of laws for co-operatives proposed for all states and territories to be achieved by each state and territory either adopting a template Co-operatives National Law or passing alternative legislation consistent with the Co-operatives National Law. The “template legislation” is designed to be adopted or enacted by all jurisdictions to:

• regulate the formation,

• registration and

• operation of co-operatives.

In applying the Co-operatives National Law, the Victorian Bill makes a series of consequential and other amendments to ensure that the Co-operatives National Law is consistent with existing Victorian legislation.

The Bill also provides for the application of the Co-operatives National Regulations and the making of local co-operatives regulations in Victoria. Like the National Law the Co-operatives National Regulations are template regulations to be applied in each Australian state and territory and will support the Co-operatives National Law by regulating administrative matters which are common to each jurisdiction. There will also be local regulations introduced in Victoria that will support the Co-operatives National Law by regulating matters that are unique to Victoria.

The Victorian Government is of the view that by enabling uniformity of regulation and administration the Co-operatives National Law, will reduce red tape and associated business costs for co-operatives on a number of levels. This will apply particularly to larger co-operatives wishing to carry on business across a state or territory border and will enable them to do so without the costly process of registering in each jurisdiction. Smaller co-operatives will benefit from the introduction of simplified financial reporting to members and removing the obligation to lodge publicly available accounts.

The National Law will implement modern principles of corporate governance and accountability similar to requirements for other corporate entities by aligning co-operatives laws on corporate governance and accountability more closely with laws regarding companies. 

To date similar legislation is also in process in the Commonwealth and NSW with other jurisdictions  expected to follow.

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