Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697636034125.pdf (Australia)
10 July 2015 Senate Standing Committee on Economics PO Box 6100 Parliament House CANBERRA ACT 2600 Dear Chair and Committee Members Re: Senate Inquiry into co-operative, mutual and member-owned firms.
In addition to the Business Council of Co-operatives and Mutuals’ formal submission to the Committee’s inquiry in which we call for parity of treatment for co-operative and mutual businesses, we would like to draw the Committee’s attention to a publicly available report on the inclusion of information about co-operatives by Australian governments in business development support.

The report specifically addresses TOR (b)(ii), being current barriers to innovation, growth, and free competition.
The report shows that: • While the Queensland and South Australian government sites provide information about co-operatives, the New South Wales, Tasmanian, Northern Territory and Federal government websites do not include information about co-operatives as a business model; • There is no consistent description of co-operatives across the websites; and • Some Federal and State government business start-up programs do not extend to co-operatives.

The report is attached.


Yours sincerely Melina Morrison Chief Executive Officer.
GPO Box 5166 Sydney, NSW, 2001 ACN 148863932 02 9239 5915 info@bccm.info www.bccm.coop Cooperative, mutual and member-owned firmsSubmission 3 - Attachment 1 Business Council of Co- operatives and Mutuals (BCCM) Report The inclusion of co-operatives by Australian governments in business development support Cooperative, mutual and member-owned firmsSubmission 3 - Attachment 1 Summary of findings This report primarily investigates the inclusion or otherwise, of information about co-operatives on government websites relating to business development, and the inclusion of co-operatives in the criteria for funding programs for business development.
The Business Council of Co-operatives and Mutuals Blueprint for an enterprising nations states: 3.2 Business support that is funded by Federal or State Government should be equally available to provide support to mutuals:  Government should ensure that private sector business advisors have appropriate mutual sector experience  Co-operatives and mutuals need geographically based business support provided at a State level  There should be equal recognition of co-operatives and mutuals by the various small business development bodies.
Victoria and Western Australia included co-operatives as a potential business model in their advice to people interested in starting a business, and included a link to comprehensive information about co-operatives.

South Australia and Queensland did not include co-operatives as a potential business model in the first instance; however in following the links further they did provide information about co-operatives.
In the case of Queensland, it was only for not-for-profits, so it was omitted in the for-profit business section.

Recommendation 1: The Queensland and South Australian sites improve their information about co-operatives to include naming co-operatives in the first instance, and the Queensland site add co-operative information to their for-profit section.
The NSW, Tasmanian, Northern Territory and Australian government business development sites did not refer to co-operatives and included no links to any information about co-operatives.

There should be equal recognition of co-operatives and mutuals by the various small business development bodies.
Recommendation 2: The NSW, Tasmanian, Northern Territory and Australian government business development sites be amended to include co-operatives as a business model, including links to relevant information about co-operatives, comparable to other business models.
GPO Box 5166 Sydney, NSW, 2001 ACN 148863932 02 9239 5915 info@bccm.info www.bccm.coop Cooperative, mutual and member-owned firmsSubmission 3 - Attachment 1 The sites of all State and Territory government jurisdictions would be improved by linking to the relevant regulatory body for co-ops, on whose sites there is universally very comprehensive information about co-operatives.
A further improvement to all sites would be linking to the Business Council of Co-operatives and Mutuals (BCCM) website for further information about co- operatives.

Recommendation 3: That all State and Territory sites include a link to relevant regulatory body’s site, and all sites to include a link to BCCM.
A range of Australian government sites, for example the ATO, the Australian Business Register, and the Australian Charities and Not-for-profit Commission, varied in the approach they took to describing or including co- operatives.

Recommendation 4: That a consistent description of co-operatives be adopted and utilised on all Australian government sites.
Each jurisdiction had examples of funding programs that variously included, partially included or did not include co-operatives as eligible to apply for funding.

Recommendation 5: That relevant government programs that do not currently extend to co-operatives be reviewed in order to become inclusive of co-operatives Each state/territory has a network of business advisory services.

Some are funded by the state/territory government and some by the Australian government.
It is unlikely that these business advisors currently have sufficient expertise to provide consistent and accurate information about the co-operative model to clients.

Recommendation 6: Federal and State government should ensure that business support funded by government is equally available to provide support to co-operatives and mutuals.

This includes ensuring that contracted private sector business advisers have appropriate mutual sector expertise.
GPO Box 5166 Sydney, NSW, 2001 ACN 148863932 02 9239 5915 info@bccm.info www.bccm.coop Cooperative, mutual and member-owned firmsSubmission 3 - Attachment 1 Table of contents Summary of Findings .............................................................................................. 2 Context ..................................................................................................................... 5 Governments primary business sites where Co-operatives were fully included 7 Business Victoria ....................................................................................................... 7 WA Small Business Development Corporation .......................................................... 7 Governments primary business sites where Co-operatives were partially included ................................................................................................................... 7 Queensland Government Business and Industry Portal............................................. 7 SA Department of State Development ....................................................................... 7 Governments primary business sites where Co-operatives were not included .
8 NSW Small Business Toolkit ..................................................................................... 8 Business Tasmania ................................................................................................... 8 NT Department of Business ...................................................................................... 8 Ausindustry ............................................................................................................... 8 Australian Government sites where Co-operatives were partially included ....... 8 ABN Lookup .............................................................................................................. 8 Australian Charities and Not-for-profits Commission ................................................. 8 National Regulatory System for Community Housing ................................................ 9 Australian Government sites where Co-operatives were not included ............... 9 Australian Taxation Office ......................................................................................... 9 Australian Business Register ..................................................................................... 9 Australian Securities and Investment Commission .................................................... 9 Examples of programs where Co-operatives were fully included ....................... 9 ACT Pilot SME Growth Program ............................................................................... 9 ACT Innovation Connect
 funding ............................................................................... 9 ACT Trade Connect .................................................................................................. 9 Austrade Export Grants ........................................................................................... 10 Tasmanian Government Small Business Jobs Bonus.............................................. 10 Australian Government Tasmanian Jobs Programme ............................................. 10 SA Unlocking Capital for Jobs Program ................................................................... 10 SA Microfinance fund .............................................................................................. 10 Examples of programs where Co-operatives were not included ....................... 10 Industry Skills Fund ................................................................................................. 10 Entrepreneur’s Infrastructure Program .................................................................... 10 WA Farm Finance Concessional Loans Scheme ..................................................... 10 WA Drought Concessional Loan Scheme ................................................................ 10 Recommendations ................................................................................................ 11 GPO Box 5166 Sydney, NSW, 2001 ACN 148863932 02 9239 5915 info@bccm.info www.bccm.coop Cooperative, mutual and member-owned
 firmsSubmission 3 - Attachment 1 Context Each government jurisdiction has a website to provide information regarding the establishment of a new business.
Australian Capital Territory Innovation, Trade and Investment www.business.act.gov.au Australian Government Ausindustry www.business.gov.au New South Wales Small Business Commissioner www.smallbusiness.nsw.gov.au/ Northern Territory Queensland Department of Business www.dob.nt.gov.au Business and industry portal www.business.qld.gov.au South Australia Department of State www.statedevelopment.sa.gov.au Development Tasmania Business Tasmania www.business.tas.gov.au Victoria Business Victoria www.business.vic.gov.au Western Australia Small Business Development Corporation www.smallbusiness.wa.gov.au There is also a range of websites providing information about recognition of business entities for the purpose of support for businesses.
Both these types of sites vary in their recognition of co-operatives as a business model.

Some sites fully include co-operatives, giving equivalent information as they do about other business models.

Some sites give partial information about the co-operative business model, by for example, identifying it but not providing equivalent further information, as is done for other business models.

Some sites do not include any information about co-operatives as a business model, at all.
Each jurisdiction also registers co-operatives.
GPO Box 5166 Sydney, NSW, 2001 ACN 148863932 02 9239 5915 info@bccm.info www.bccm.coop Cooperative, mutual and member-owned firmsSubmission 3 - Attachment 1 Australian Capital Territory Access Canberra https://www.accesscanberra.act.gov.au/app/a nswers/detail/a_id/2102 New South Wales Fair Trading NSW http://www.fairtrading.nsw.gov.au/ftw/Coopera tives_and_associations.page Northern Territory Department of Business http://www.dob.nt.gov.au/gambling- licensing/business/Pages/co-operatives.aspx Queensland Office of Fair Trading South Australia Consumer and Business Services http://www.qld.gov.au/law/laws-regulated- industries-and-accountability/queensland- laws-and-regulations/associations-charities- and-non-for-profits/cooperatives/ http://www.cbs.sa.gov.au/wcm/licensing-and- registration/co-operatives/ Tasmania Consumer Affairs http://www.consumer.tas.gov.au/registrations/ co-operatives Victoria Consumer Affairs Victoria http://www.consumer.vic.gov.au/businesses/r egistered-businesses/co-operatives Western Australia Department of Commerce http://www.commerce.wa.gov.au/consumer- protection/co-operatives Each of these sites contains comprehensive information about what a co- operative is, the types of co-operatives; how to form, run, register and close a co-operative, and has the relevant forms and information about fees.
NSW, Victoria and Queensland have extensive further information.

These sites are a very useful resource for anyone wanting to establish a co- operative and are an underutilised resource by the business development sector.

The information provided in the Northern Territory, South Australia, Victoria and NSW is under the new National Co-operative Legislation.
The other States and the ACT refer to the new legislation, but the information provided relates to the older state/territory legislation still in force.

None of the sites currently provide a link to the BCCM.
GPO Box 5166 Sydney, NSW, 2001 ACN 148863932 02 9239 5915 info@bccm.info www.bccm.coop Cooperative, mutual and member-owned firmsSubmission 3 - Attachment 1 Governments’ primary business sites where co-operatives were fully included: Business Victoria Choose the right business structure - options: Sole trader, Partnership, Company, Trust, Incorporated association, Incorporated Aboriginal corporation, Cooperative.
A link, http://www.business.vic.gov.au/setting-up-a- business/business-structure/cooperative provides information on: What a cooperative is; Advantages and disadvantages; Key factors for choosing this structure; Register as a cooperative.

WA Small Business Development Corporation Business structures – options: Sole trader, Partnership, Company, Trust, Cooperative and Association.
A link provides information on: Advantages and disadvantages of a cooperative and includes a link to http://www.cooperativeswa.org.au/ Governments’ primary business sites where co-operatives were partially included: Queensland Government Business and Industry Portal Business legal structures – “This guide gives you general information about the advantages and disadvantages of the 4 most common business structures - sole trader, partnership, company and trust.” However the Not-for-profits section also lists Incorporated Associations, Cooperatives, and Charities.
A link provides information on: What is a cooperative?

Cooperative forms and fees; Search the cooperatives register; Registering a cooperative; Run a cooperative; Close down a cooperative; Cooperatives laws.

SA Department of State Development Structuring your business – options: Sole trader, partnership, company, trust.

However, this page links to a guide: Choosing an ownership structure for your business, and page 13 of the guide, under Legal forms of ownership, is a section on Co-operatives.
This section provides information on: Types of co- operatives; What are the advantages of co-operation?

How do co-operatives differ from other business structures?
GPO Box 5166 Sydney, NSW, 2001 ACN 148863932 02 9239 5915 info@bccm.info www.bccm.coop Cooperative, mutual and member-owned firmsSubmission 3 - Attachment 1 Governments’ primary business sites where co-operatives were not included: NSW Small Business Toolkit  Business models addressed: Sole trader, Partnership, Proprietary Limited Company, Trust, Franchise, Independent contractor Business Tasmania  Starting a business, choosing a business structure – options: sole trader, partnership, company, trust NT Department of Business  Starting a business, guide to business structures – options: Sole trader, Partnership, Company Ausindustry  Business structures and types – options: sole trader, partnership, trust, company Australian Government sites where co-operatives were partially included: ABN Lookup Information provided about co-operatives is inconsistent with other definitions of a co-operative.
“A Cooperative is an organisation with rules:    limiting the number of shares held by one shareholder prohibiting the quotation of its shares to the public, and establishing it primarily for the purpose of marketing, processing or storing commodities for disposal or distribution among its shareholders, or rendering other services to its shareholders.” Australian Charities and Not-for-profits Commission  Lists co-operatives, but does not include a link to further information as it does for associations, companies, indigenous corporations, and trusts.
GPO Box 5166 Sydney, NSW, 2001 ACN 148863932 02 9239 5915 info@bccm.info www.bccm.coop Cooperative, mutual and member-owned firmsSubmission 3 - Attachment 1 National Regulatory System for Community Housing  Eligibility for Tier 1 registration requires the entity to be incorporated as either a company limited by shares or a company limited by guarantee under the Corporations Act 2001.
However eligibility for Tier 2 and Tier 3 includes cooperatives or incorporated associations under state/territory legislation.

Australian Government sites where co-operatives were not included: Australian Taxation Office  Choosing your business structure – options: sole trader, partnership, company, trust Australian Business Register  Applying for an ABN - options: Individual Sole trader, Partnership, Company, Trust, Superannuation entities, Deceased estate.
Australian Securities and Investment Commission  Your business structure – options: company, individual (sole trader), partnership, and trust  Starting a small business – options: company, sole trader, partnership, and trust Examples of programs where co-operatives were fully included: ACT Pilot SME Growth Program  Does not appear to exclude co-ops.

Relevant criteria: be registered and trading in ACT ACT Innovation Connect funding  Does not appear to exclude co-ops.
Relevant criteria: an Australian Business Number (ABN) ACT Trade Connect  Does not appear to exclude co-ops.

Relevant criteria: Be a registered business for tax purposes.
GPO Box 5166 Sydney, NSW, 2001 ACN 148863932 02 9239 5915 info@bccm.info www.bccm.coop Cooperative, mutual and member-owned firmsSubmission 3 - Attachment 1 Austrade Export Grants  Eligible bodies: Any Australian individual, partnership, company, association, co-operative, statutory corporation or trust that has carried on export promotion activities during the year for which they wish to apply for an export grant.
Tasmanian Government Small Business Jobs Bonus  Eligibility criteria: operate a Tasmanian small business and have an Australian Business Number (ABN).

Australian Government Tasmanian Jobs Programme  Eligibility criteria: have a physical business location in Tasmania with an Australian Business Number SA Unlocking Capital for Jobs Program  Eligibility criteria: is an organisation, comprised of one or more legal entities (not a person) that are incorporated or established in Australia.
SA Microfinance fund  Eligibility criteria: the ability to enter into a legally binding funding agreement with the South Australian Government.
Examples of programs where co-operatives were not included: Industry Skills Fund  Eligible businesses are Corporations or Trusts, not Co-operatives Entrepreneur’s Infrastructure Program  Applicants must be a business incorporated in Australia under the Corporations Act 2001 WA Farm Finance Concessional Loans Scheme  Eligibility criteria: operates as a sole trader, trust, partnership or private company WA Drought Concessional Loan Scheme  Eligibility criteria: operates as a sole trader, trust, partnership or private company GPO Box 5166 Sydney, NSW, 2001 ACN 148863932 02 9239 5915 info@bccm.info www.bccm.coop Cooperative, mutual and member-owned firmsSubmission 3 - Attachment 1 Recommendations 1.
The Queensland and South Australian sites improve their information about co-operatives to include naming co-operatives in the first instance, and the Queensland site add co-operative information to their for-profit section.

2.

The NSW, Tasmanian, Northern Territory and Australian government business development sites be amended to include co-operatives as a business model, including links to relevant information about co- operatives, comparable to other business models.

3.
3.

That all State and Territory sites include a link to relevant regulatory body’s site, and all sites to include a link to BCCM.

4.

That a consistent description of co-operatives be adopted and utilised on all Australian government sites.

5.

That relevant government programs that do not currently extend to co- operatives be reviewed in order to become inclusive of co-operatives 6.
Federal and State government should ensure that business support funded by government is equally available to provide support to co- operatives and mutuals.

This includes ensuring that contracted private sector business advisers have appropriate mutual sector expertise.
Produced by Linda Seaborn for the Business Council of Co-operatives and Mutuals (BCCM) June 2015 Disclaimer The BCCM and the author, Linda Seaborn, stress that this report is a comprehensive representation of the range of government sites and programs that could apply to co- operatives, but is not exhaustive of all the possibilities.

All information is correct as at 8 June 2015.


GPO Box 5166 Sydney, NSW, 2001 ACN 148863932 02 9239 5915 info@bccm.info www.bccm.coop Cooperative, mutual and member-owned firmsSubmission 3 - Attachment 1 Cooperative, mutual and member-owned firmsSubmission 3 - Attachment 1