Business Council of Co-operatives and Mutuals (BCCM), Media Release, 19 June 2025

Australia’s co-operative and mutual sector has ambitions to emulate its UK counterpart’s planned doubling in size, after recording an 8.4 per cent increase in annual revenue.

The latest National Mutual Economy Report (NME), published today by the Business Council of Co-operatives and Mutuals (BCCM), shows continued resilience by the sector against a backdrop of on-going global volatility and stabilising inflation.

The top 100 co-operatives and mutuals posted revenue of $47.7 billion in the year to June 30, 2024, up from $44 billion in the previous year.

Total revenue for the sector is now 38.6 per cent higher than in FY 2021, reflecting consistently robust growth during the post-Covid period and laying strong foundations for continued expansion.

“Australia’s co-operatives and mutuals continue to demonstrate their resilience despite challenging conditions both globally and domestically, reinforcing the strength of this under-appreciated business model,” said Melina Morrison, Chief Executive Officer of the BCCM.

“There is enormous potential for the sector to make an even greater contribution to a more competitive and productive economy, given appropriate regulatory settings and support from government.

“Co-ops and mutuals are already delivering positive outcomes for members and their communities in a number of challenging areas, including affordable housing, aged care and disability support services, regional banking and agriculture.

“We look forward to working with government and regulators to position co-ops and mutuals at the centre of the economic and social agenda, similar to the UK Labor Government’s initiative to double the size of its mutual sector,” Ms Morrison said. 

Co-operatives and mutuals have shown remarkable resilience in the face of economic headwinds, reinvesting surpluses locally and maintaining service delivery. Government should look to the business model to help stimulate economic growth amongst smaller Australian firms. Sectors targeted for growth like manufacturing and renewable energy could benefit from co-operatives as a vehicle to scale small and medium businesses.

The top 100 features some of Australia’s biggest unlisted companies including West Australian grain handler CBH, health insurers HCF and HBF, motoring groups NRMA, RACQ and RAC as well as health and financial services group Australian Unity.

The mantle of Australia’s largest co-op again went to CBH, which recorded turnover of $4.69 billion.

CBH’s Chief Executive Officer, Ben Macnamara, said the outlook for the agricultural sector remained strong with a growing WA crop size and global demand for grain remaining strong.

“At CBH, we’re seeing the benefits of sustained investment in supply chain efficiency and infrastructure. That said, volatility is a constant in our industry, whether it’s from global geopolitical tensions or market disruptions.

“Despite this, we must continue to innovate alongside our grower members, remain cost-conscious and ensure that we’re delivering value back to our members, not just in strong seasons but in the tough ones too.”

Steve Laidlaw, the chief executive of Australia’s largest customer owned bank, People First Bank, also highlighted the unique challenges facing the sector.

“Increasingly, Australians are turning to organisations that act with integrity, serve a clear purpose and contribute to their communities.

“That presents a real opportunity for co-ops and mutuals, but also a clear challenge. Customers want to bank with organisations that have a social conscience and do good. However, this is not enough, they also need their experiences to be simple and tailored to their needs. We need to meet both of these elements if we are going to continue to succeed.”

The NME report shows that the top 100 managed assets worth $217 billion, up 4.8 per cent on the previous year, while net profit after tax was $1.87 billion.

Co-operatives and mutuals exist for the benefit of their members, which may be customers, staff, suppliers, or a combination of stakeholders. Unlike listed companies, they are not motivated by the need to maximise profits and pay dividends to investors. Instead, they can use surplus funds to reinvest in services and deliver benefits to members. Eight in every 10 Australians are members of at least one co-operative or mutual.

Outgoing Chief Executive Officer of HCF, Sheena Jack, said the mutual model’s strength lay in “putting people before profits”.

“Our members aren’t just customers—they’re the reason we exist. Every decision we make has our members at the centre. Being part of a mutual like HCF means members benefit directly from the value we create, from lower premiums, more generous benefits, better customer service, and access to health programs that support their wellbeing.” 

The NME report shows that Australia’s co-ops and mutuals had combined active memberships of 37.3 million during the 2024 financial year, up from a previous 34.7 million.

There was a total of 1834 co-ops and mutuals, directly employing at least 94,400 Australians. This was a slight increase on the previous year, despite heightened merger activity, particularly among customer owned banks, driven by the need to find scale and efficiencies in a competitive banking environment.

Top 10 Co-operative Mutual enterprises by turnover

That merger activity has continued in the current financial year with Bank Australia and Qudos Bank set to unite in July, while Teachers Mutual Bank Limited and Australian Mutual Bank Limited, and Regional Australia Bank with Summerland Bank, are considering mergers for 2026.

Commenting on drivers behind consolidation, Bank Australia CEO and managing director Damien Walsh said: “Customer-owned banks continue to face common challenges around economies of scale, replacing legacy technologies and growing cybersecurity threats.

“How smaller institutions balance these competing challenges and drive continued improvements in customer experience will be critical to their future success.”

bccm.coop/nme.

About the BCCM

The BCCM is the national peak body for Australian co-operatives and mutuals. Co-operatives and mutuals provide essential services and affordable pricing to their members across the economy from banking, insurance and superannuation to retail, agriculture, health, social care and housing. Serving eight in every ten Australians, co-operatives and mutuals are private sector, member-owned entities. They are formed to benefit their members, drawn from the stakeholders of the business such as customers, suppliers, employees or people in the local community.