Co-operatives National Law Bill 2020
Plain English Summary
Overview
This bill adopts the Co-operatives National Law as a law of Queensland, replacing the outdated Cooperatives Act 1997. Queensland was the last state or territory to join this national scheme, which gives co-operatives a consistent legal framework across Australia. The bill reduces red tape for small co-operatives, allows automatic interstate recognition, and updates governance standards.
Who it affects
Queensland co-operatives and their members are most directly affected. Existing co-operatives transition automatically to the new law with their registrations, memberships and rules preserved. Small co-operatives benefit from simpler reporting requirements.
Key changes
- Repeals Queensland's Cooperatives Act 1997 and replaces it with the nationally harmonised Co-operatives National Law
- Queensland co-operatives are automatically recognised by all other states and territories, reducing costs and paperwork for interstate trading
- Financial reporting and auditing requirements are simplified for small co-operatives
- Directors' and officers' duties are updated to modern corporate governance standards while keeping co-operative principles
- Existing co-operatives, their members, rules and registrations carry over seamlessly to the new law
Bill Story
The journey of this bill through Parliament, including debate and recorded votes.
▸Committee4 Feb 2020View Hansard
Referred to Legal Affairs and Community Safety Committee
The Legal Affairs and Community Safety Committee examined the Co-operatives National Law Bill 2020 over seven weeks, receiving three submissions, holding a public departmental briefing and a public hearing. All submitters supported the bill. The committee recommended the bill be passed, finding that while it raised several fundamental legislative principle and human rights concerns -- particularly regarding inspector powers, self-incrimination protections, and the automatic adoption of future amendments from NSW -- these were justified in the circumstances.
Key findings (5)
- All three submitters -- the Coochin Creek Fruitgrowers' Co-operative, the Co-operative Federation of Queensland, and the Business Council of Co-operatives and Mutuals -- supported the bill
- The bill would make Queensland the last state to adopt nationally harmonised co-operatives legislation, removing a competitive disadvantage for Queensland co-operatives trading across borders
- Key reforms include simplified financial reporting for small co-operatives (around 90 per cent of Queensland's 165 co-operatives), new fundraising provisions through co-operative capital units, modernised directors' duties, and automatic mutual recognition across jurisdictions
- The committee identified several breaches of fundamental legislative principles, including inspector powers to enter premises without a warrant, abrogation of the privilege against self-incrimination, and reversal of the onus of proof, but found all were justified
- Stakeholders raised that the threshold definition of 'small co-operative' was lower than for small proprietary companies, and the department agreed to raise this at the national level through the Co-operatives National Law Working Party
Recommendations (1)
- The committee recommends the Co-operatives National Law Bill 2020 be passed.
Committee report tabled
▸Second Reading16 June 2020View Hansard
▸6 members spoke6 support
Introduced the Co-operatives National Law Bill to repeal the Cooperatives Act 1997 and adopt nationally harmonised cooperatives legislation, reducing red tape for small cooperatives and enabling automatic mutual recognition across jurisdictions.
“The CNL Bill will modernise the legislation governing cooperatives in Queensland and complete the national legislative scheme developed by the states and territories.”— 2020-06-16View Hansard
Supported the cooperatives bill, praising the tiered financial reporting system and the introduction of cooperative capital units, while arguing the bill was a missed opportunity for deeper reform to support rural and regional communities.
“My opinion on this bill, which the opposition will be supporting, is that, again, it is a missed opportunity for a deeper discussion and a deeper consideration.”— 2020-06-16View Hansard
As a member of the Legal Affairs and Community Safety Committee that considered the cooperatives bill, supported the bill for reducing reporting burdens on small cooperatives, providing automatic mutual recognition and updating governance standards.
“Now we consider the benefits of Queensland co-ops participating in the national agreement under the cooperatives national law, and these include the reduction of reporting for small cooperatives.”— 2020-06-16View Hansard
Strongly supported the cooperatives bill, highlighting the importance of cooperatives to the Glass House electorate and welcoming the reduction in financial reporting requirements and new fundraising opportunities through cooperative capital units.
“It is fantastic to see this positive red-tape-reduction work in this bill as it pertains to cooperatives. I and the LNP will be supporting it.”— 2020-06-16View Hansard
Spoke in support of the cooperatives bill, emphasising the role of cooperatives in providing employment pathways for vulnerable Queenslanders and linking the reforms to Queensland's Social Enterprise Strategy.
“Cooperatives turned this approach into a business model. It is great that today here in this House we can support them.”— 2020-06-16View Hansard
Briefly spoke in support of the cooperatives bill, sharing personal experiences with cooperatives through family connections to the dairy and banana industries.
“It may just be that I am a socialist at heart, but cooperatives are one of my favourite business models of choice.”— 2020-06-16View Hansard