Daniel Mulino (Fraser, Australian Labor Party, Assistant Treasurer) | Link to this | Hansard source

I move:

That this bill be now read a second time.

Today I introduce the Cash Distribution Framework Bill 2026, another important step in the Albanese government's plan to protect Australians' choice at the checkout and ensure no community is left behind as payments change.

We have 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 should not be forced out of the economy.

This bill backs that commitment with practical safeguards to keep cash moving, particularly for regional communities, older Australians, small businesses and those who rely on cash during emergencies and outages.

Guided by recommendations from the Council of Financial Regulators and the ACCC, it will ensure the cash distribution system continues to serve Australians for years to come.

Cash plays an important role in promoting economic inclusion, payments system resilience and as a store of value particularly in times of uncertainty.

But declining transactional cash use is placing pressure on the economics of storing, processing and transporting cash around the country.

The framework will keep cash distribution working in the public interest by promoting fair and transparent commercial arrangements between providers, financial institutions and Australian businesses while also supporting the long-term viability of cash distribution services.

It will support the government's cash acceptance mandate by helping businesses access cash at reasonable prices, so they can continue accepting it as a means of payment.

And it will strengthen a system that remains essential for many Australians, particularly those in regional Australia.

The framework has three key elements.

The first provides powers to the Reserve Bank to designate entities that have a significant role in the cash system, or those that provide critical cash distribution services.

Limiting regulation to critical entities will keep the framework proportionate, targeting areas of greatest benefit while avoiding unnecessary burden on smaller providers or new entrants that do not provide critical services.

The second enables the ACCC to oversee designated entities, including fair and efficient pricing of cash distribution services, which is essential to maintaining access to cash.

ACCC oversight will support fair, transparent and reasonable pricing outcomes, while helping maintain the long-term economic viability of the sector.

The bill creates obligations for designated entities when negotiating cash distribution service and access agreements, and allows the ACCC to approve standard terms for classes of agreements.

It also establishes arbitration to resolve negotiation 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 reliable access to cash across Australia.

These standards may cover factors such as availability and timeliness, with the ACCC having regard to the bill's objects and the public interest.

The third gives the RBA powers to ensure continuity of critical cash distribution services and help prevent disruptions before they occur.

While transactional cash use has declined, many Australians would still face genuine hardship if cash became harder to access or use.

That is why the Reserve Bank needs appropriate powers to act quickly and decisively to sustain critical services and resolve a crisis.

The bill provides the Reserve Bank with crisis and resolution powers, including directions, appointing a statutory manager, or transferring business assets or shares of a cash distribution service provider in crisis.

It also enables up to $400 million in funding support to ensure the continuity of critical cash distribution services.

Funding support is intended as a last resort, limited to situations where an entity's resources and recovery tools are insufficient to address losses or threats to cash availability.

Any unrecovered funding would be recovered from major users of cash distribution services, recognising their role in enabling cash access for businesses and the community.

The crisis and resolution powers are subject to clearly defined triggers for intervention and are distinct from the Reserve Bank's day-to-day monitoring and regulatory functions.

They are consistent with crisis and resolution frameworks applying to other critical services in banking, insurance and clearing and settlement.

The bill also establishes criminal and civil penalties and provides information gathering and enforcement powers to regulators to support compliance.

Together, these powers create a coherent framework to support the continued availability and long-term viability of cash as a means of payment in Australia.

I thank the businesses and community members who engaged in the extensive consultation on the proposed framework.

I note the Legislative and Governance Forum for Corporations was notified in relation to the Cash Distribution Framework Bill 2026, as required under the Corporations Agreement 2002.

Full details of the measure are contained in the explanatory memorandum.

As payment methods change, the government is making sure the system works for everyone, not just those who can easily move away from cash.

The bill keeps cash available for the people and businesses who rely on it, while building a stronger and more resilient payments system. I commend the bill to the House.

Debate adjourned.