The Council of Financial Regulators and the Australian Competition and Consumer Commission have released a Conclusions Paper recommending a new regulatory framework for Australia’s cash distribution system after consulting in 2025. The agencies back most elements of the original proposal, aimed at supporting access to cash as cash use declines and the distribution market remains concentrated, but they would scale back the framework to reduce burden by not proceeding with registration requirements for all cash distribution providers. Instead, the recommended model would focus on entities that provide critical cash distribution services. It would allow regulator or ministerial designation of critical entities, supported by information-gathering powers to assess firms for designation and ongoing oversight powers for designated entities. The paper also recommends crisis readiness and resolution powers, including directions, statutory management and transfer powers, with triggers linked to cessation of critical services, financial non-viability or conduct threatening service continuity. In addition, it proposes regulator powers to oversee and, as a backstop, set price and non-price terms for agreements with business customers, oversee dispute resolution, and oversee and set access agreements for other providers seeking access to critical services of designated entities. For regional business customers, the agencies recommend minister-set minimum service-level standards overseen by a regulator, alongside reporting, binding dispute resolution and penalties backed by investigative, infringement and court-based enforcement powers. The Conclusions Paper reflects feedback from 47 submissions, about 1,200 public emails and stakeholder meetings. Stakeholders were broadly supportive of the framework’s main elements, while raising concerns about disproportionate compliance costs for smaller providers and the need for clear criteria and proportionate use of regulatory powers.
Council of Financial Regulators2026-04-22
Council of Financial Regulators and Australian Competition and Consumer Commission recommend cash distribution regime while dropping universal provider registration
The Council of Financial Regulators and the Australian Competition and Consumer Commission recommend a new regulatory regime for cash distribution focused on critical providers rather than all firms. The package would introduce designation, oversight, crisis resolution, agreement and access powers, regional service standards and enforcement. The agencies dropped the earlier proposal to register all cash distribution providers in response to concerns about burden on smaller firms.