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

McCormack stated that the Nationals would not oppose the bill but commended an amendment moved by the member for Page to refine the legislation. McCormack argued that cash is vital for regional economies and highlighted the importance of the 2023 banking inquiry in securing commitments from major banks to keep regional branches open. McCormack noted that the merger of Armaguard and Prosegur created a private monopoly controlling up to 90 per cent of the cash-in-transit market, necessitating regulatory oversight.

Witty argued that cash remains essential for everyday life, particularly for older Australians, families with young children, and those on lower incomes. Witty explained that the bill gives the ACCC power to approve standard terms for cash providers and requires designated entities to negotiate in good faith. Witty highlighted that the legislation includes crisis readiness powers for the Reserve Bank to prevent sudden breakdowns in cash distribution. Witty emphasised that the framework supports the viability of bank branches and post offices in regional areas.

Venning stated that the coalition would help pass the bill quickly but criticised the government for delaying action until the ACCC's temporary undertaking on the cash-in-transit merger was about to expire. Venning argued that the cash acceptance mandate is inadequate because it does not cover medicines and leaves many regional communities without banking access due to branch closures. Venning highlighted that the bill provides necessary regulatory oversight for the monopoly but fails to address the broader issue of declining banking infrastructure in remote areas.

Templeman argued that the bill ensures cash remains available in regional and remote areas, including through Bank@Post services. Templeman explained that the framework introduces a crisis management regime allowing the Reserve Bank to intervene if critical providers become insolvent or cease services. Templeman noted that the amendments clarify interactions with road transport contractual chain orders to avoid regulatory ambiguity. Templeman emphasised that the government is committed to maintaining cash access for as long as Australians wish to use it.

Soon stated that the bill complements the cash acceptance mandate by regulating the distribution system to ensure sustainability and transparency. Soon explained that the ACCC will establish mandatory minimum service level standards and that the Reserve Bank will have powers to direct designated entities during the transition period. Soon highlighted that the framework supports the viability of regional bank branches and noted other government actions, such as ending surcharges and phasing out cheques, to strengthen the payment system.

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Moncrieff argued that cash remains a vital payment method for approximately one in ten Australians, particularly older people and those in regional communities. Moncrieff highlighted the economic challenges facing the cash distribution network as demand declines while operational costs remain high. Moncrieff stated that the bill provides a necessary regulatory framework to manage systemic risks and ensure fair pricing for cash services. Moncrieff emphasised that the legislation complements existing measures, such as the cash acceptance mandate for essential goods, to safeguard financial inclusion.

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Mulino stated that the bills establish safeguards to maintain an efficient and resilient cash distribution system. Mulino explained that the Reserve Bank of Australia will have powers to designate significant entities and manage crises to prevent service disruption. Mulino noted that the Australian Competition and Consumer Commission will oversee service-level standards and dispute resolution mechanisms. Mulino confirmed that amendments were made to address Senate committee recommendations regarding Fair Work obligations and technical clarifications.