Highlights

  • The Cash Distribution Framework Act 2026 gives the RBA crisis-readiness and resolution powers.
  • The ACCC will oversee pricing, access arrangements and service-level standards.
  • The RBA designates Linfox Armaguard without announcing intervention.

Australia’s cash distribution system is entering a new regulatory phase, with the Reserve Bank of Australia gaining powers intended to preserve critical services during disruption. Governor Michele Bullock outlined the framework in her 28 October 2026 Senate committee statement, reaffirming support for cash to remain available for as long as Australians want or need it.

Cash Availability Remains a Public Policy Priority

Bullock described cash as a critical part of an inclusive and resilient payments system. The RBA remains committed to supporting the Australian Government’s objective of continued access across the country.

The distribution system has faced significant challenges and needs to keep evolving. Industry participants are working on initiatives to make it more sustainable and efficient, although those initiatives will require Australian Competition and Consumer Commission approval.

The RBA has a direct role as the issuer of Australian banknotes. It supplies banknotes to major banks, which distribute them to the broader community. The Central Bank is working with industry on arrangements, programs and incentives that support efficient distribution and availability.

New Law Separates Crisis Powers From Service Oversight

The Cash Distribution Framework Act 2026 provides the RBA with crisis-readiness and resolution powers to support continuity of critical cash distribution services. Bullock welcomed the recent passage of the legislation.

The ACCC will oversee pricing, access arrangements and service-level standards. The RBA is coordinating closely with the competition regulator as the new powers and responsibilities are made operational.

The framework therefore combines the central bank’s ability to prepare for and respond to problems affecting critical services with ACCC oversight of specified commercial and service arrangements. The speech described implementation work as continuing.

Armaguard Designation Establishes Capacity to Act

The RBA has designated Linfox Armaguard Pty Ltd under the new legislation because of its significant role in Australia’s cash distribution system. Designation makes the company subject to the framework’s obligations and requirements.

Bullock explicitly distinguished designation from the exercise of crisis-readiness or resolution powers in relation to the company. The designation means the RBA can act if needed; it does not mean the central bank will use those powers.

That distinction is central to the update. The announcement establishes regulatory coverage and capacity, while the wider task remains supporting continuity and an efficient distribution network.

The cash work sits within the RBA’s broader responsibility to provide secure, reliable banknotes and support a reliable, efficient and competitive payments system. Bullock’s statement also described reforms to card payments and ongoing work on financial innovation, while retaining cash availability as a separate priority.

The next practical steps are operationalising the new framework in coordination with the ACCC and continuing industry work on distribution arrangements. The Government’s commitment to cash availability remains the guiding objective as the system adapts to its challenges.