Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
 Download Full Day's HansardDownload Full Day's Hansard    View Or Save XMLView/Save XML

Previous Fragment    Next Fragment
Thursday, 8 April 1965

Senator CAVANAGH (South Australia) . - I move -

That Clause 7 be postponed until after consideration of all remaining clauses.

I do so as an indication that .the Government should take steps to make permanent, instead of interim, provision for deposits in credit unions to be treated as acceptable savings.

The Committee will remember what I said earlier about the South Australian Superannuation Fund. In the eastern States we see in operation the system of credit unions, which to the public are an acceptable and recognised form of saving having good support, but deposits with credit unions are not acceptable savings for the purposes of this Act. The amendment is moved as an indication that, in the opinion of this chamber, deposits of credit unions should be acceptable savings. I do not want to delay the Committee. I have been supplied by the New South Wales Credit Union League Co-operative Ltd. with information in justification of its claim that credit unions comprise people who save together and lend savings to one another at the lowest possible rates.

Australia is the only country where credit unions pay income tax. They do not avoid any taxation. In New South Wales there are 200 credit unions, with 70,000 members. Their savings total £6 million and loans amount to approximately £44 million. The Federal Government gives them no recognition or encouragement. Last financial year 49 credit unions reported housing loans totalling £578,890. Credit unions lend to finance housing alterations, which are often as important as new homes. The future influence of credit unions on housing will be in the elimination of interest on second mortgages. They will assist young people to buy land and will decrease the waiting time for homes by teaching thrift at an early age.

This is a combination of 70,000 people in New South Wales who provide a source of savings which have been used in the main for short term loans for renovations, furniture, and other items financed by hire purchase companies. I am informed that they are today lending on first mortgages for housing. Their previous failure to do this was the reason for their non-acceptance under this legislation and they have rectified this position. As this form of savings is acceptable to the people of New South Wales and some of the other States and as it is so established that no risk of default is evident, .1 submit that it should be accepted as a form of savings under this legislation.

Suggest corrections