Banks welcome passage of legislation to regulate Australia’s cash-in-transit sector

The ABA welcomes today’s passage through the Parliament of the Cash Distribution Framework Bill 2026, an important safety net shoring up the ongoing distribution and availability of cash across the economy.

ABA CEO Simon Birmingham said banks continued to support customers who choose to use cash and this regulatory framework would provide greater certainty for the cash distribution sector going forward.

“Banks remain committed to ensuring Australians have real choice in how they pay. Supporting the movement of cash around the country, alongside digital payment options are central to this commitment,” Mr Birmingham said.

“Given cash usage has fallen from 70 per cent two decades ago to around 15 per cent now, there are clear challenges and cost pressures when it comes to cash distribution.

“That’s why banks and retailers have stepped-up, injecting over $100 million in financial assistance above contractual conditions to Armaguard over the past two years.

“This new regulatory regime brings an important safeguard to the cash-in-transit sector, ensuring sustainable pricing, clear service standards and defined arrangements should any disruptions to cash distribution occur.

“It also sits alongside the industry’s work on an Independent Pricing Mechanism, designed by an independent expert to provide more financial certainty to Armaguard into the future.

“After years of consultation, we thank the Government and the Opposition as well as the wider Parliament for their engagement and consideration of this important legislation.”

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