Cash Distribution Framework

The framework has three key elements. The first provides powers to the Reserve Bank to designate entities that have a significant role in the cash system, or those that provide critical cash distribution services. Limiting regulation to critical entities will keep the framework proportionate, targeting areas of greatest benefit while avoiding unnecessary burden on smaller providers or new entrants that do not provide critical services.

The second enables the ACCC to oversee designated entities, including fair and efficient pricing of cash distribution services, which is essential to maintaining access to cash. ACCC oversight will support fair, transparent and reasonable pricing outcomes, while helping maintain the long-term economic viability of the sector. The bill creates obligations for designated entities when negotiating cash distribution service and access agreements, and allows the ACCC to approve standard terms for classes of agreements. It also establishes arbitration to resolve negotiation disputes and enables t

The ACCC is also empowered to establish service-level standards to support fair and reliable access to cash across Australia. These standards may cover factors such as availability and timeliness, with the ACCC having regard to the bill's objects and the public interest.

Triggers for crisis resolution powers The RBA must only exercise a crisis resolution power after at least one condition for resolution has been met. The conditions broadly relate to a designated entity’s ability to continue to provide cash distribution services that are critical to the availability of cash in Australia or the designated entity’s financial viability. If any of the following conditions are met in relation to a designated entity, the RBA may exercise its crisis resolution powers: a designated entity requests the RBA’s assistance, and the RBA reasonably believes that an event i

When a condition for resolution has been met, the RBA may access its resolution powers, which include: appointing a statutory manager to the designated entity or a related body corporate; initiating the transfer of business or shares of a designated entity (and related bodies corporate) to a third party; issuing directions. These resolution powers are designed to enable the RBA to step in when a designated entity is in crisis, minimise disruption and maintain confidence in Australia’s cash distribution system. They are supported by strong safeguards, including clearly defined triggers, ove

The Treasurer, with the written approval of the Finance Minister, is permitted to activate a maximum appropriation of up to $400 million per event to maintain the vital functions of a designated entity during a crisis. The Treasurer can only make an authorisation if one or more crisis conditions in section 90 of the Bill are satisfied.[Definition of ‘Finance Minister’ in section 5, subsection 160(1) and section 161 of the Bill] This authorisation must specify the amount of funds, that does not exceed $400 million per event, authorised to be drawn down from the appropriation. The initial appro

(1) Page 164 (after line 4), after Subdivision A, insert: Subdivision AA—Protections for employees 162A Powers must not be exercised to lessen employee entitlements The Reserve Bank must not take action in accordance with this Part in relation to a designated entity if: (a) the action would result in the entitlements of an employee of the designated entity being less beneficial than they were immediately before the action was taken; or (b) each of the following are satisfied: (i) there is an employee (the current employee) of the designated entity immediately before the action is taken;