I commented on the original decision in Coleambally Irrigation Mutual Co-operative Limited here. In effect it decided that if a body’s reserves do not belong to the members on a winding up, it is not a mutual.

The co-op’s appeal to the Full Federal Court has failed and they have now applied for special leave to appeal to the High Court.

Notwithstanding the result, the ATO has announced it will not change its rules for charities.