Cash Distribution Framework Bill 2026: what it would change and who would be affected

The short answer

Cash Distribution Framework Bill 2026: what it would change and who would be affected

The Cash Distribution Framework Bill 2026 is a government bill introduced in the House of Representatives on 2 July 2026 under the Treasury portfolio. It proposes to establish a framework to regulate cash distribution services in Australia, including an oversight framework for service agreements and access agreements and powers for the Australian Competition and Consumer Commission (ACCC) to set service-level standards, as described in the official summary on the Parliament bill page. The bill passed the House of Representatives on 12 August 2026 and passed the Senate on 20 August 2026, when the second reading and third reading were agreed to and one Australian Greens amendment was agreed to. The Senate returned the bill to the House with an amendment (message No. 161 of 20 August 2026), and the House agreed to the Senate's amendment by division 266 (84 votes to 34) on 20 August 2026, according to the House Live Minutes. As of 23 August 2026 the Parliament of Australia bill page records the status 'Passed Both Houses', having finally passed both Houses on 20 August 2026, and the bill awaits Royal Assent; it has not been enacted.

This is a federal system guide. State constitutions, parliaments and local-government laws can allocate comparable functions differently.

The useful question is not only “what is the rule?” but also “who administers it, which document controls it, and when might it change?” That distinction prevents an accurate general explanation from becoming wrong advice in a particular election, chamber or policy setting.

Evidence review

What the bill proposes

The Cash Distribution Framework Bill 2026 is a Treasury portfolio bill that proposes to establish a mandatory regulatory framework governing cash distribution services in Australia. The bill would require designated cash distribution providers to meet prescribed service standards for the collection, transport, processing and delivery of physical currency. The framework is designed to ensure that businesses and individuals who rely on cash — including those in regional and remote areas — can continue to access physical money even as the commercial volume of cash transactions declines.

The official summary on the Parliament bill page describes the bill as establishing a framework to regulate cash distribution services in Australia, including an oversight framework for service agreements and access agreements and powers for the Australian Competition and Consumer Commission (ACCC) to set service-level standards. The bill was introduced with the Cash Distribution Framework (Consequential Amendments and Transitional Provisions) Bill 2026, which makes the supporting legislative changes and transitional arrangements.

At its core, the bill seeks to address a market failure: as fewer Australians use cash for everyday transactions, the infrastructure that moves physical currency around the country becomes less profitable to maintain. Banks have closed branches, ATMs have been removed, and cash-in-transit operators have reduced routes. The bill proposes that the government step in with an enforceable framework to preserve a baseline level of cash distribution service, treating cash access as an essential economic service rather than a purely commercial product.

Evidence review

Parliamentary status and what happens next

The bill was introduced in the House of Representatives and read a first time on 2 July 2026, and the second reading was moved the same day. Debate resumed on 11 August 2026; the bill was referred to the Federation Chamber on 12 August 2026, where the second reading was agreed to and 23 government amendments were agreed to in consideration in detail, before the bill was read a third time on 12 August 2026. It passed the House of Representatives on 12 August 2026.

The bill was introduced in the Senate and read a first time on 17 August 2026, with the second reading moved the same day. On 20 August 2026 the second reading was agreed to and the third reading was agreed to, with one Australian Greens amendment agreed to, so the bill passed the Senate on that day, according to the bill page progress.

Message No. 161 of 20 August 2026 from the Senate returned the bill with an amendment. The House ordered that the amendment be considered immediately; the Assistant Treasurer, Dr Daniel Mulino MP, moved that it be agreed to, and the question was resolved in the affirmative by division 266 (84 votes to 34) on 20 August 2026, according to the House Live Minutes. The Parliament of Australia bill page now records the bill status as 'Passed Both Houses' and its progress shows that the bill 'Finally passed both Houses' on 20 August 2026.

The bill is not yet law. Having passed both Houses, it will be presented to the Governor-General for Royal Assent, and it becomes an Act only after that assent is given. Any resulting framework would then need to be developed and a transition period provided, so the measures would not take effect immediately. Progress can be followed on the Parliament of Australia bill page and the Federal Register of Legislation.

Evidence review

Who would be regulated

The bill would apply to a defined class of 'cash distribution entities'. Based on the structure of comparable financial services regulation, this is expected to include: authorised deposit-taking institutions (banks, credit unions, building societies) that handle physical currency; armoured car and cash-in-transit operators that transport currency; retail cash management providers that supply or collect cash from businesses; and operators of ATM networks.

Under the framework, the ACCC would have powers to set service-level standards, and an oversight framework would apply to service agreements and access agreements between cash distribution participants. These standards could include minimum numbers of cash access points in designated geographic areas, maximum distances between cash services, minimum operating hours, and obligations to serve all communities regardless of commercial viability. Providers would face penalties for breaches.

Evidence review

Who would be affected

The primary beneficiaries would be Australians who rely on cash for daily transactions. According to Reserve Bank of Australia consumer payment survey data, while cash use has declined significantly — from about 70% of transactions in 2007 to approximately 13% in 2022 — certain groups remain heavy cash users: older Australians, people in regional and remote areas with unreliable digital connectivity, people on low incomes who use cash for budgeting, and some culturally and linguistically diverse communities.

Small businesses that handle significant cash volumes — cafes, markets, tradespeople — would benefit from preserved cash distribution infrastructure, as would tourists and visitors who may not have access to Australian digital payment systems. The regulated entities — banks, cash-in-transit operators and ATM providers — would face new compliance costs and reporting obligations.

Evidence review

The declining-cash context

The bill arrives when Australia's cash infrastructure is contracting rapidly. The RBA reported in 2024 that bank branches had fallen by approximately 30% over the preceding five years, while ATMs had declined by roughly 25% over the same period. In some remote communities, the nearest bank branch or ATM is now hundreds of kilometres away.

Several countries have introduced similar cash-access guarantees. Sweden passed legislation in 2020 requiring banks to provide adequate cash services across the country. The United Kingdom's Financial Services and Markets Act 2023 includes provisions to protect access to cash. The Australian bill appears to draw on these international precedents while adapting to Australia's geographic and regulatory context.

Evidence review

Evidence and uncertainty

The bill's justification rests on the premise that declining cash use is leading to a market-driven withdrawal of cash services that harms some Australians. The official summary on the Parliament bill page confirms the framework's core elements, including ACCC powers to set service-level standards and an oversight framework for service agreements and access agreements. While there is solid RBA data on declining cash use and branch/ATM closures, the causal link between commercial withdrawal and consumer harm is less well-documented. There is limited Australian-specific research on how many people are genuinely unable to access cash when they need it.

A key uncertainty is cost: who pays for maintaining cash services in areas where they are commercially unviable? If the cost falls entirely on regulated entities, those costs will be passed on to consumers. If the government subsidises cash distribution, the cost falls on taxpayers. The explanatory memorandum should be examined for costings and a regulatory impact statement.

Evidence review

Chamber record cross-check

Senate passage is recorded in the bill page progress: the second reading was agreed to on 20 August 2026 and the third reading was agreed to on 20 August 2026, with amendment details listing one Australian Greens amendment agreed to.

The House of Representatives Live Minutes for 20 August 2026 record that Message No. 161 of 20 August 2026 from the Senate was reported returning the Cash Distribution Framework Bill 2026 with an amendment; that the amendment be considered immediately was ordered; that Dr Mulino (Assistant Treasurer) moved that the amendment be agreed to; and that the question was resolved in the affirmative by division 266, 84 votes to 34.

The bill page progress records that the bill was referred to the Senate Economics Legislation Committee on 2 July 2026, with the committee reporting on 7 August 2026, and that it was considered by the Senate Standing Committee for the Scrutiny of Bills on 12 August 2026 (Scrutiny Digest 9 of 2026).

The bill page progress records the bill status as 'Passed Both Houses' and shows it 'Finally passed both Houses' on 20 August 2026. As of 23 August 2026 the bill is awaiting Royal Assent and has not been enacted. House Live Minutes and the bill page progress are point-in-time official records; they do not replace the corrected Hansard, the Votes and Proceedings or the Journals of the Senate.

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