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

Ms CLUTTERHAM (Sturt) (17:53): I rise today to speak in support of the Cash Distribution Framework Bill 2026. The bill has, as its core purpose, a determination to protect Australians' choice when they participate in the commercial marketplace at the checkout and to ensure no-one is excluded from participation in the face of the changing way Australians pay for goods and services.

We are all consumers. We all need to purchase goods and services for personal or household use. We all need to buy cars, fridges or washing machines.

We all need to hire a plumber or an electrician or get dental work done. Australians participate in the consumer marketplace by contracting to agree to pay a certain amount of money in exchange for the provision of goods or services all day—thousands of consumer interactions, contracts and exchanges all day, every day. You cannot live and participate in life today without being a consumer.

Some people consume more than others. But, whatever transactions Australians participate in as consumers and whatever the number of transactions Australians participate in, the system must be fair, simple and trustworthy with contemporary and effective protections in place. Under the leadership of the Prime Minister, Treasurer, Assistant Treasurer and Assistant Minister for Productivity, Competition, Charities and Treasury, the Albanese Labor government has delivered for consumers by rebuilding the structures that make the consumer marketplace fair and more equal for everyone who participates in it.

This has been a strategy prosecuted at a regular cadence by this government. For example, in late 2023, the Commonwealth strengthened the unfair contract terms regime, meaning it's now illegal to include, apply or rely on unfair terms in standard-form contracts with consumers and small businesses. It is fair to say that most Australians have probably encountered a service which contracts on a take-it-or-leave-it basis, often with a one sided arrangement with one party bearing all the risk and no reward.

Another key aspect of this government's reforms is the establishment of the National Anti-Scam Centre and the first scams prevention framework, which operate to put clear and meaningful obligations on banks, telcos and digital platforms to prevent scammers from acting before they act. John, an elderly gentleman, lives in Campbelltown in my electorate of Sturt.

I met him whilst I was out doorknocking. John was retired. After 40 years of working in a physical job, he had a number of aches and pains and a few mobility issues.

He was up for a chat. John told me that he had received a phone call out of the blue from PayPal seeking to do an identity check. John, who lives alone, was happy to get the call and happy to oblige by providing his name, address and bank details, which resulted in John being scammed to the tune of more than $5,000.

John told me he didn't even have a PayPal account, but the scammer was so convincing and he just wanted to help. Consequently, John had thrown his mobile phone away. He'd stopped using the internet and had also, in his words, 'ripped the landline out of the wall' so he couldn't be scammed again.

John being scammed resulted not only in him losing a serious amount of money but in becoming even more isolated. Already lonely, John had chosen to cut himself off from the digital world out of fear. Because of this, he no longer wants to use a credit card or participate in the digital marketplace.

He only trusts cash. Stories like John's are all too common. Scams and scam cities are growing and becoming more sophisticated, and business, banks and other participants offering goods and services in the consumer marketplace must take proactive steps to stop scams, not just deal with the aftermath when savings are decimated and lives are destroyed.

Stories like John's demonstrate that there is still a clear need for cash in our economy. This government has already made it mandatory for major supermarkets and fuel retailers to accept cash for essential purchases, because Australians who want or need to use cash deserve access to the marketplace. This bill firms up this commitment, particularly for older Australians like John but also for small businesses, those who live in regional communities and those who rely in an urgent and unavoidable way on cash during emergencies and service outages.

Cash use is reducing, but it is still a feature. I have seven local government areas in my electorate, and I visit the respective mayors regularly at their council chambers. Without fail, every time I do, there is someone, usually an elderly Australian, paying a bill over the counter using a bag of cash, often in small denominations.

The cash distribution system must continue to serve Australians, and, in drawing on guidance from the Council of Financial Regulators and the ACCC, this bill will ensure the cash distribution system continues to serve Australians for years to come, because we know that a substantial portion of the Australian population would face genuine hardship or major inconvenience if cash were to become harder to access or use as a payment method.

It is right that maintaining access to cash is a key priority in the government's strategic plan for Australia's payment system. Appropriately the cash distribution regulatory framework complements the cash acceptance mandate that commenced earlier this year on 1 January. This obliges supermarkets and fuel retailers to allow customers a reasonable opportunity to pay in cash at certain retail sites.

Cash must be accepted for in-person payments when transactions are $500 or less and between the hours of 7 am and 9 p.m. This mandate reflects the fact that cash is a fundamental feature of economic inclusion, the resilience and sustainability of the payment system, and a store of value, particularly in times of crisis and uncertainty. There are three key elements of the framework prescribed in this bill.

Firstly, powers are provided to the Reserve Bank to designate entities that have a significant role in the cash system or those that provide critical cash distribution services. This is targeted regulation designed to keep the framework proportionate and avoid placing burdens on smaller providers or new market entrants that do not provide critical and essential services.

The second feature enables the ACCC to oversee these designated entities, including the fair and efficient pricing of cash distribution services, because access to cash is made more challenging without accessible and fairly priced cash distribution services. This oversight is intended to support the long-term economic viability of the cash distribution sector.

The third feature of the framework gives the RBA powers to ensure continuity of critical cash distribution services and help prevent disruptions before they occur. To do this, the Reserve Bank needs appropriate powers to act promptly and with urgency to sustain critical services and resolve a crisis. These crisis and resolution powers include powers to make directions, appoint a statutory manager or transfer the business assets or shares of a cash distribution service provider in crisis.

In addition, up to $400 million in funding support is available to ensure the continuity of cash distribution services is available but only as a last resort and where relevant entities, resources and recovery tools are insufficient to address losses or threats to the availability of cash. These crisis and resolution powers are subject to clearly defined triggers for intervention and are separate from the Reserve Bank's day-to-day monitoring and regulatory functions.

The powers reflect the crisis and resolution frameworks already applying to other critical services in banking, insurance, and clearing and settlement. We also know that the availability of cash in an emergency such as a flood or a bushfire, both of which happen with frequency in this country, is critical. Further system outages or cyberattacks may also impact the electronic payments and banking system, making cash the prime or only payment mechanism.

Cash provides instant access to essential goods and services—food, shelter, health care, clean water. When people receive cash, they can quickly and effectively meet their most urgent needs. A cash-based disaster recovery program can reach more isolated and affected people and can also reduce operational costs and the environmental footprint, allowing disaster recovery budgets to go much further.

We also know that people in crisis overwhelmingly prefer cash over prepackaged assistance because cash gives people back control over their lives at a time where they may have limited control because of a disaster. Instead of receiving standard or 'one size fits all' packages that may not meet their specific needs, cash recipients can buy exactly what they require, and this flexibility allows them to address challenges as they arise, whether it's purchasing medicine for a sick child, materials to fix a damaged roof or other essential supplies.

Cash also preserves dignity. If you've had to flee or if you've lost your house, everything that can be done to restore dignity to what is a tragic and potentially dehumanising situation must be done, and this includes access to cash. Cash assistance allows people to make their own decisions and meet their needs through normal activities, like shopping at the local market or the local shop, and this change from passive recipient of assistance to active decision-maker can have a profound impact on mental wellbeing during the aftermath of a crisis.

And it's not just the individuals who benefit. Money spent in local markets and shops and with local service providers helps to stimulate economic recovery in crisis affected areas. As payment methods change and the digital age becomes even more entrenched, the Albanese Labor government is acting to ensure the marketplace is available and accessible to everyone, not just to those who can easily adapt to the digital marketplace.

This bill protects not only vulnerable Australians but all Australians and Australian businesses by ensuring the availability of cash and shoring up the cash distribution and payment system so it enjoys long-term resilience and sustainability. I commend the bill to the House.