Overview
- The government is consulting on designating cash distribution services as critical infrastructure and granting regulators price-setting powers.
- A joint discussion paper from the Council of Financial Regulators and ACCC proposes mandatory reporting standards and closer oversight of the near-monopoly Armaguard–Prosegur entity.
- Legislated price-setting authority would apply when providers and banks fail to agree on fees, targeting a merged operator that controls more than 90% of the market.
- A decline in cash transactions has strained the logistics sector and prompted a A$50 million bailout for Armaguard by major banks and retailers in 2024.
- Around 1.5 million Australians rely on cash for most in-person purchases, particularly in regional communities and during digital payment outages.