In 1994, Australian credit unions lost their exemption from income tax on interest on loans to members. They were placed on a "level playing field" with the major banks and other lenders. What impact did the change have?

In a interesting interview (37.5 minutes free mp3 download), Professor Kent Zumwalt discusses the results of his research: the impact of taxation on credit unions’ return on assets over a 10 year period and their current position in relation to other financial institutions. He also looks at other competitive factors and their implications for credit unions in the United States.

It’s rare to get a long-distance review on the effects of structural change and this easy listening interview draws out some important issues for mutual organisations in particular.