Cash Distribution Framework Bill 2026, Cash Distribution Framework (Consequential Amendments and Transitional Provisions) Bill 2026
Mr ROB MITCHELL (McEwen) (10:55): The old saying says, 'Cash is king.' Cash is essential to our economy. Cash plays an important role in promoting economic inclusion. Payment systems resilience and the store of value, particularly in times of uncertainty.
If you talk to the RBA, around seven per cent of the population still use cash for more than 80 per cent of their transactions. High-cash users are more likely to be older and, in many cases, have a lower household income. These are the groups more likely to feel financial pressure and value having a good handle of their funds.
For seniors, the appeal of cash extends beyond budgeting. Many prefer it for its simplicity, reliability, most of all, security. Cash transactions do not rely on internet access or digital literacy, which can be barriers for older Australians.
There are also concerns about scams and privacy, with physical currency offering anonymity and reducing exposure to fraud. Similarly, regional Australians are more likely to use cash than those living in capital cities. Natural disasters and electrical blackouts are times when access to cash is particularly critical.
Blackouts, which occur more frequently in rural and regional areas, necessitate the use of cash. If you're a local business and the connectivity drops, you've missed the sale. There's a reason why emergency service agencies recommend that households keep cash in their emergency kits.
Australians across all demographic groups continue to use cash as a way to make their everyday payments. But now cash distribution is under threat. Declining transactional cash use is placing pressure on the economics of storing, processing and transporting cash around the country.
Industry consolidation, as the member for Riverina mentioned, and structural changes mean that it's time that regulations change as well. Our government is committed to giving a fair go to all Australians. Maintaining reasonable access to cash to withdraw and to deposit services for Australians who want or need to use cash is part of keeping that commitment.
It's why we're acting to ensure Australians have access to cash. No matter what part of the country you live in, you should be able to go and get your groceries, your meat and veg, and just hand over a couple of pineapples. This is why I'm proud to support these bills.
In these bills we are establishing regulatory powers to enable the sector to shift back to a sustainable footing. Cash-in-transit companies service the needs of financial institutions, large retailers and hospitality venues. It's important that regulations target large-scale businesses without becoming a hurdle for smaller operations.
We're also including safeguards to ensure the continuity of critical services for all Australians. We are taking a specific and decisive approach that is tailored to the modern economy, and we are doing it in four main ways. Increased oversight abilities for the ACCC will support fair, transparent and reasonable pricing outcomes while helping maintain the long-term economic viability of the sector.
Specifically, cash levels in rural and regional communities will be monitored to ensure stability. The bills create obligations for designated entities when negotiating cash distribution services and access agreements. Through this, the ACCC will have the power to approve standard terms of agreements.
It also establishes processes of arbitration to resolve disputes and enables the ACCC to determine dispute resolution requirements for designated entities. The ACCC is also empowered to establish service level standards to support fair and reasonable access to cash across Australia. These standards may cover factors such as availability and timeliness, with the ACCC taking into account these bills' objectives and the public interest.
Similarly, we want the RBA to be able to act in a crisis. While transactional cash use has declined, many Australians would still face genuine hardship if cash became harder to access or use, which is why the Reserve Bank needs the appropriate powers to act quickly and decisively to sustain critical services in the event of a crisis. It also enables up to $400 million in funding support to ensure the continuity of critical cash distribution services.
The funding support is intended as a last resort, limited to situations where an entity's resources are insufficient to address the losses or threats due to cash availability. The crisis and resolution powers are subject to clearly defined triggers for intervention and are distinct from the RBA's day-to-day monitoring and regulatory functions. They are consistent with crisis resolution frameworks that apply to other critical services in banking, insurance and settlement.
There are also the good-faith requirements for designated providers when they negotiate with customers. The consolidation of the industry means that customers have relatively low bargaining power. The government is stepping in to ensure their interests are fairly protected.
The Reserve Bank will be able to designate entities that have a sufficient role in the cash system, or those that provide critical cash distribution services. Limiting regulation to critical entities will keep the framework tight. It means targeting areas of the greatest benefit, while avoiding unnecessary burden on smaller providers or new entrants that don't provide critical services.
Of course, the temporary interim direction powers for the ACCC for the 24 months after the commencement of this legislation will encourage sustainable, commercially negotiated agreements. The government wants to make the transition process as seamless as possible. As a whole, these are four clear changes designed to modernise cash distribution and support everyday Australians.
As cash use declines, the sector has become more concentrated, which means it's more costly to operate. We're making sure the system continues to function in the public interest. The Australian Banking Association stated: The Cash Distribution Framework Bills are a critical step to provide security to the long-term availability of cash in Australia.
The government has consulted widely, reflecting the importance of these bills. The framework has been informed by recommendations from the Council of Financial Regulators and the ACCC and consultation with industry and, in particular, community stakeholders. Throughout this process, other groups such as the Customer Owned Banking Association, Coles, Woolies, Wesfarmers and Australia Post have expressed their broad support for the objectives.
The Treasury has engaged with key players in the goal of making compliance as simple as possible. I think we all agree that we want to ensure that Australia's payment system is resilient and fair and works in the interests of everyday Australians. We do this by providing additional certainty that cash will be delivered and collected so businesses that have active tills or ATMs are stocked and consumers can use loose change at the check-out.
Together, these powers create a coherent framework, complementing our cash acceptance mandate, which came into effect at the start of the year. To reflect on that mandate, we've delivered on our commitment to mandate cash acceptance for essential purchases that require food and grocery retailers to accept cash since January this year. We made it mandatory for businesses to accept cash when they sell those essential items.
It ensures that everyone who depends on cash for fuel or groceries isn't getting left behind. In addition to the cash mandate for fuel and groceries, consumers already have options to pay their bills, including utilities, phone bills, council rates et cetera, in cash at their local Australia Post outlet through Post Billpay. You should be able to pay with cash when you need to, and that's what the laws are all about.
As payment methods change, the government is making sure the system works for everyone, not just those who can easily move away from cash. This is another practical policy from a practical government. Whether it's for elderly Australians, those in remote and regional areas or those in low-income communities, these bills before the House today will provide stability and ensure continuing availability of cash.
With that, I commend these bills to the House.