Cash Distribution Framework Bill 2026, Cash Distribution Framework (Consequential Amendments and Transitional Provisions) Bill 2026

Mr HOGAN (Page—Deputy Manager of Opposition Business) (17:24): I move: That all words after "That" be omitted with a view to substituting the following words: "whilst not declining to give the bill a second reading, the House: (1) affirms that cash is critical national infrastructure, and that access to cash remains essential for millions of Australians, particularly older Australians and those in regional and remote communities; (2) notes that when a natural disaster strikes, the power goes out, or communications networks fail, it is cash that keeps working; (3) expresses concern that the Government has failed to act sooner, noting that: (a) the risks to the cash distribution system have been evident since the ACCC approved the Armaguard and Prosegur merger in June 2023; (b) by Easter 2024 the system was brought to the brink of crisis, requiring an emergency meeting chaired by the Governor of the Reserve Bank to secure a rescue package; and (c) the Government has acted only in the final weeks before the ACCC's enforceable undertaking expires in September 2026, and that delay has placed the ongoing strength of Australia's cash system at risk; and (4) expresses further concern about the Government's ongoing failure to address bank branch closures, and its lack of any plan for when the moratorium on regional branch closures ends on 31 July 2027".

We won't be opposing this bill. I note the minister in the chamber, and I acknowledge his presence. Cash is a critical piece of national infrastructure, and it's right to protect it.

As the minister well knows—but, for the chamber, I'll go through a little bit of the history of how we got to where we are today—in June 2023, the ACCC approved the merger of Australia's two largest cash-in-transit companies: Armaguard and Prosegur. That decision handed a single company control of 85 to 90 per cent of the market, a private monopoly over how cash physically moves around this country.

The ACCC only allowed it with a temporary three-year undertaking, setting conditions over the merged entity until September 2026. In September 2023, the merger was finalised. In October 2023, just three weeks later, Armaguard approached the government, the RBA and major banks saying that, if it didn't get an extra $190 million over three years, it would no longer be viable.

By Easter 2024, the risks were laid bare. Armaguard called for a bailout. Coles decided to pause cash deliveries and limited instore cash withdrawals.

Shoppers faced the real prospect of not being able to get cash in certain places that they normally would have. It took an emergency meeting chaired by the Reserve Bank governor and a $50 million rescue package from banks and major retailers to keep the trucks going. With the ACCC's enforceable undertaking on Armaguard about to expire in a month's time, the government has turned up with a plan.

I acknowledge the plan. I support the plan. But I must admit that it is at the eleventh hour.

I would suggest that the government should have acted on this sooner than it did. This bill creates an emergency regime so that cash can keep moving. This regime would be managed by the RBA, with similar emergency powers to what APRA have for banks and insurance companies and the financial market infrastructure regime.

It also provides the ACCC with the power to require fair and transparent pricing; approve the terms offered to the banks and retailers; and set service standard levels, instead of a monopoly setting its own terms. My side of politics always leans towards lower regulation, for private enterprise to work things out and for less government interference. But monopolies are, in a sense, a market failure, and we can't have a monopoly setting prices without close monitoring and controls.

It's not fair for Australians that rely on cash. There would also be risks to our broader economy if we were to have a cash crisis. So I say to the minister these are sensible powers within this bill, the same kind we already use to protect the banking and insurance industries, and we support the minister and the government in doing this.

This bill does raise a wider topic, though, which I'd just like to touch on. It's good to have cash flowing around and cash getting delivered to where it needs to be in Armaguard trucks, but I think this bill doesn't necessarily put enough cash mandates onto the retail sector to make sure people can use cash where they want to. Labor did do a cash mandate, which commenced in January of this year.

I personally don't feel it goes wide enough; it covers supermarkets and fuel, but there are limits of up to $500, and it's only between certain hours at some places—between 7 am and 9 pm. For example, it doesn't cover pharmacies, so there are potentially some pharmacies where older Australians can't pay cash for their medicines. Also, I think it raises issues around ATMs and bank closures.

We've seen over 800 bank branches close since 2022, Deputy Speaker Boyce, and I'm sure probably some of them have been in your community. There have been some in my community. Some of these banks and retail branches were in places where they were the only branch operating.

There is a moratorium currently on regional bank closures, but it only applies to the major banks, many of which have already left some towns. It expires on 31 July 2027. I do note that Westpac have unilaterally agreed to extend the moratorium until 2030, which is welcome.

I encourage the government to have a plan for what comes when this moratorium ends. It's June 2026, and the moratorium ends in less than a year. In conclusion, we support the government.

I support the minister and the work he's done on this and on passing the bill quickly, because the undertaking runs out in September. But I had hoped the government would have acted quicker. This will guarantee delivery but not necessarily your right to use cash in as many places as I think it should.

And we need a plan for regional bank closures after the moratorium. The DEPUTY SPEAKER ( Mr Boyce ): Is the amendment seconded? Mr Violi: I second the amendment and reserve my right to speak.