Today the Government is releasing draft legislation to regulate the cash distribution sector to ensure it continues to serve the needs of Australians.
This is about strengthening the cash distribution system, which is essential for the many Australians and businesses that rely on cash.
It builds on our changes that make it mandatory for fuel and grocery retailers to accept cash, so Australians can continue to pay cash for essentials if they want to.
Although digital payments continue to grow, cash remains critical, especially for regional communities, and plays a vital role during emergencies and outages.
As cash use declines, the sector has become more concentrated and costly to operate. A regulatory framework is needed to ensure the system continues to operate in the public interest.
Data released this week by the Reserve Bank shows that around 15 per cent of in‑person payments are made in cash, and around half of Australians use cash each week.
The cash distribution framework will establish:
- a mechanism for the ACCC to oversee these critical services through fair, reasonable and transparent standard terms, and service‑level standards that support access to cash for all Australians
- crisis preparedness and resolution powers to protect continuity of critical services
- requirements for designated providers to negotiate with customers in good faith.
The framework is designed to support access to cash nationwide, promote fair and transparent commercial arrangements, and strengthen the resilience of a system that remains essential for many Australians.
The draft legislation has been informed by recommendations from the Council of Financial Regulators and the Australian Competition and Consumer Commission. Their report, following public consultation in 2025, is available on the CFR website.
The Government invites submissions on the exposure draft legislation, available on the Treasury website with consultation closing on 13 May 2026.
