FED Reserve Bank Must Watch Key Cash Companies and Fine People for Breaking Arbitration Secrets

Cash Distribution Framework Bill 2026

20 Aug 2026: Passed by Parliament and signed off by the governor.

This bill kicks in: TBA

House of Representatives

Senate

Assent

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Topics

arbitration banking services cash distribution confidentiality corporate governance financial regulation government oversight public finance regulatory compliance reserve bank

Links to official parliament websites

Official page: progress through parliament

Effects of this bill

If this bill passes, it means that:

Designated entities face civil penalties for failing to comply with service-level standards.
Designated entities must immediately notify the Reserve Bank if they stop providing critical cash distribution services; failure to do so is a criminal offence.
People cannot appoint an external administrator to a designated entity without the Reserve Bank's approval or giving 7 days' notice. Doing so is a strict liability offence and makes the appointment invalid.
Designated entities must deal in good faith and provide written advice about arbitration during contract negotiations; failure to do so triggers civil penalties.
Designated entities must provide approved standard terms during negotiations or reasonably attempt to agree on terms; failure to do so leads to civil penalties.
People who break confidentiality requirements during arbitration are liable for civil penalties.
The Reserve Bank can label a company as a 'designated entity' if it provides cash distribution services in Australia and is important to the system. The Reserve Bank must talk to the ACCC before doing this.
Designated entities must tell the Reserve Bank immediately if they fail cash distribution standards, fail resolvability standards, or stop providing critical cash services.
Designated entities must tell the Reserve Bank if a related Australian company is appointing an external administrator.
Designated entities must follow any notification rules the Reserve Bank sets for identifying and monitoring risks to cash services.
The ACCC can set mandatory terms for a designated entity's agreements if the entity fails to apply for approval or fails to provide information.
Designated entities must use any terms decided by an arbitration determination in their service or access agreements.

The Debate

What different members said when this bill was debated:

Tim Ayres ALP

“I table a revised explanatory memorandum relating to the bills and I move: That these bills be now read a second time. I seek leave to have the second reading speeches incorporated in Hansard. Leave granted.”

Official source →

Matthew Canavan NAT

“I’ll indicate at the beginning that the Liberal and National parties won’t be opposing the Cash Distribution Framework Bill 2026. It’s a bill that does establish a reasonable but belated framework to deal with a change in the competitive cash distribution landscape.”

Official source →

Richard Dowling ALP

“It’s great to be back and talking about cash. It used to be how we paid for pretty much everything. Cash was king, as they say. In 2007, about seven in every 10 payments were cash—pretty significant. Most payments were cash based. Most people in this chamber would remember the cash world.”

Official source →

Penny Allman-Payne GRN

“The fact is cash is king for retailers, sellers and buyers. The Cash Distribution Framework Bill 2026 and the Cash Distribution Framework (Consequential Amendments and Transitional Provisions) Bill 2026 establish a regulatory framework for Australia’s cash distribution system, with a particular focus on the cash-in-transit sector.”

Official source →

Susan McDonald LNP

“I feel well versed and well qualified to talk about cash and the economy, having run a significant-size multistore retail operation in Queensland. I take note of so many of the points that have been made in this debate, though I will call out One Nation taking credit for the removal of the government’s bill on cash as being complete fantasy.”

Official source →