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Coalition Joint Party Room approval a positive start to implementing reforms

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The Coalition Joint Party Room approval today of crucial legislative reforms to make it easier for customer owned banks to compete with the ‘Big Four’ is a welcome step towards creating a more competitive banking sector.  

The Coalition Joint Party Meeting approved the Treasury Laws Amendment Bill (No. 6) to be introduced into Federal Parliament. The Bill includes the first phase of reforms to address recommendations made in the Hammond Review to improve the competitiveness of credit unions, building societies and mutual banks.

While the final Bill is yet to be released, the Draft Exposure version implements two key reforms:

  • amending the Corporations Act to define a mutual entity, and
  • amending the Corporations Act to reform demutualisation rules

These reforms will improve the capacity of Australia’s customer owned banking sector to more easily raise capital and increase its ability to compete with the nation’s major banks.

“Greater competition means better outcomes for Australian consumers,” said Customer Owned Banking Association Chief Executive Michael Lawrence.

Mr Lawrence said it’s imperative that the Government maintains momentum on these reforms, “It’s important for the Government to maintain momentum by introducing the Bill into Parliament before the end of the sitting week.

“Party room approval is a good first step, but there is no time to waste in getting the Bill introduced into Parliament.

“This Bill begins to level the playing field for customer owned banks to take on the Big Four.”

COBA is the industry body for mutual banks, credit unions and building societies. With four million customers, total assets of $113 billion and 74 member institutions, the customer owned sector collectively holds the largest pool of household deposits and the largest housing book outside the Big Four banks.

For more information please contact:

Sally Mackenzie
Director – Strategy & Stakeholders
+61 2 8035 8450 or +61 412 721 663
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Media Contacts

Mick Gibb
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M: +61 423 149 494
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