Cash Distribution Framework (Consequential Amendments and Transitional Provisions) Act 2026

Several core concepts are introduced or imported into other Acts by this instrument. The principal definitional anchor is "cash distribution framework" which is inserted into multiple statutes (Competition and Consumer Act s 4(1) as amended by Schedule 1 item 1; Reserve Bank Act s 5(1) as amended by Schedule 1 item 14). The Schedule 1 definition in the Competition and Consumer Act reads:

"cash distribution framework means: (a) the Cash Distribution Framework Act 2026; or (b) record‑keeping rules within the meaning of that Act; or (c) rules or any other instrument made under that Act; or (d) the Regulatory Powers Act to the extent that it applies in relation to a provision of that Act."

This is a broad catchall which treats the new Act together with subordinate instruments and the Regulatory Powers Act as a unitary concept for the purposes of the amended Acts.

Schedule 2 introduces other central transitional concepts. "New Act" is defined as "the Cash Distribution Framework Act 2026" and "transition period" is defined as "the period of 24 months beginning on the day this Schedule commences" (Schedule 2, item 1). "Interim direction" is defined as a direction under item 2(1) and includes variations. The ACCC’s interim direction power is framed as a legislative instrument power to "require the designated entity to provide cash distribution services or facilities access to a customer on terms (including terms relating to price or a method of ascertaining price) specified in the direction" (item 2(1)). The power may cover classes of entities, services, facilities access or customers (item 2(2)) and may include reporting requirements (item 2(3)(c)). Interim directions are expressly time limited, subject to variation, and are repealed at the end of the transition period unless earlier revoked (items 2(4)-(5), 4(3)).

Schedule 2 also builds in a hierarchy and interaction rule: item 6(5) provides that if there is an inconsistency between an interim direction and specified other instruments, the other instrument prevails to the extent of the inconsistency. Those instruments include a determination under subsection 54(1) of the new Act, service‑level standards, cash distribution standards, resolvability standards, undertakings accepted by the ACCC under s 87B of the Competition and Consumer Act, specified service or access agreements, and directions by the Reserve Bank under certain divisions of the new Act. The presence of this list signals the drafters’ intention to allow interim ACCC compulsions to operate broadly, but not to displace negotiated contractual arrangements or certain higher order regulatory instruments where they exist.

Civil enforcement features are also core. Item 5(1) creates a civil penalty for failure to comply with an interim direction. The civil penalty is defined in monetary terms through penalty units: for a body corporate, "the greater of: (i) 50,000 penalty units; and (ii) if the court can determine the benefit derived and detriment avoided because of the contravention,that amount multiplied by 3" (Schedule 2, item 5(1)). For individuals, it is the greater of 5,000 penalty units or three times the benefit/detriment amount if that can be determined. Item 5(3) and 5(4) add separate civil penalty obligations for failure to give required written notices when entering negotiations, each with lower fixed penalty unit amounts.

Information sharing and protected information concepts are amended elsewhere. Schedule 1 inserts a new s 157AAA into the Competition and Consumer Act, allowing the ACCC to disclose information it obtains under the Act "that is relevant to the functions or powers of the Reserve Bank of Australia under the cash distribution framework" to the Reserve Bank and certain Reserve Bank officers, and to permit the Reserve Bank to use that information for cash distribution framework purposes. The Reserve Bank Act amendments insert "cash distribution framework" into multiple definitions and allow the Board to have regard to the Bank’s functions under the framework, for example by adding to s 10B(1) a function "to ensure the Bank’s functions and powers under the cash distribution framework are performed and exercised in a way that, in the Board’s opinion, best contributes to the availability of cash" (Schedule 1, item 16).

Finally, Schedule 1 inserts a safe harbour into the Corporations Act as s 588GAAD, which modifies the operation of the insolvent trading prohibition in s 588G(2) by making that subsection inapplicable where a debt is incurred at a time when a provision of the new Act prevents appointment of an external administrator (item 11). That provision includes an evidential burden allocation for a defendant relying on the safe harbour.

These concepts together construct a transitional regulatory architecture: a statutory definition sweep that integrates the new framework into existing regimes, a temporary ACCC compulsion power to ensure access to cash distribution services while the permanent scheme is established, tailored civil penalties and notice obligations, and structured information exchange with the Reserve Bank.

The Act touches a heterogeneous set of parties through amendments to different statutes and through the Schedule 2 transitional regime. Principal affected groups, as they appear on the face of the instrument, are:

• Designated entities. Schedule 2 repeatedly refers to "a designated entity" as the addressee of an interim direction (item 2(1)). The Act does not itself define who counts as a designated entity in Schedule 2, but the new Act (referred to as "new Act" in Schedule 2 item 1) is the source for the term. Practically, this will include providers of cash distribution services or operators of facilities used to distribute cash. Designated entities carry obligations during the transition period to comply with interim directions, to provide notices when entering negotiations, and face civil penalties for non‑compliance (Schedule 2, item 5).

• Customers or persons seeking cash distribution services or facilities access. Interim directions may require provision of services or facilities access "to a customer" on specified terms (item 2(1) and 2(3)(a)). The instrument specifically contemplates new customers and continuation of services to existing customers (item 2(3)(a)-(b)). Customers negotiating service or access agreements with designated entities are affected by the notice obligations in item 5(3)-(4), and by the priority rule in item 6(5)(f) which preserves certain negotiated agreements.

• The ACCC. The instrument gives the ACCC a new, time‑limited, legislative instrument power to direct designated entities during the 24 month transition period (Schedule 2, item 2). The ACCC is also given the ability to vary and revoke interim directions by legislative instrument (item 4), and the instrument aligns existing Competition and Consumer Act investigatory powers and Regulatory Powers Act provisions to allow the ACCC to monitor, investigate and enforce compliance with the transitional Schedule (item 7). The ACCC may disclose information to the Reserve Bank under the inserted Competition and Consumer Act s 157AAA (Schedule 1, item 9).

• The Reserve Bank of Australia. The instrument formally brings the cash distribution framework into the Reserve Bank Act by inserting "cash distribution framework" into definitions and by adding to the Board’s remit the specific function "to ensure the Bank’s functions and powers under the cash distribution framework are performed and exercised in a way that, in the Board’s opinion, best contributes to the availability of cash" (Schedule 1, items 14 and 16). The new s 157AAA in the Competition and Consumer Act allows the ACCC to disclose relevant information to the Reserve Bank for use in performing its cash distribution framework functions (Schedule 1, item 9). The Reserve Bank’s ability to receive protected information and the treatment of persons who are officers in the Reserve Bank context are also adjusted (items 17-25).

• Owners, directors and other individuals connected to designated entities. Item 5 contains civil penalty provisions that extend to individuals as well as bodies corporate. Item 5 notes that an individual may be liable for an ancillary contravention (see notes to 5(1), 5(3), 5(4) referencing s 92 of the Regulatory Powers Act). The Corporations Act safe harbour s 588GAAD affects officers and creditors by changing the operation of insolvent trading exposure for debts incurred during periods when s 73 of the new Act prevents appointment of external administrators (Schedule 1, item 11).

• Persons with service agreements or access agreements. Subitem 5(2) limits the application of an interim direction "to the extent that ... there is in force a service agreement or access agreement ... entered into before the time the designated entity’s designation under section 14 of the new Act came into force" and not varied since. Paragraph 6(5)(f) also preserves negotiated and entered service/access agreements where specific criteria are met. Those contractual parties therefore have a degree of protection from the ACCC’s interim compulsion, but only to the extent described.

• The courts and other oversight bodies. The instrument modifies how judicial review and stays interact with ACCC decisions in the transition context. Subitem 6(3) disapplies certain paragraphs of the Administrative Decisions (Judicial Review) Act 1977 to ACCC decisions to give or vary an interim direction, and subitem 6(4) requires the Federal Court not to make orders staying or otherwise affecting the operation or implementation of such an ACCC decision pending resolution of an application for a writ or injunction under subsection 39B(1) of the Judiciary Act 1903. Those rules affect the procedural posture of any judicial challenge during the transition period.

On its face, the Act distributes regulatory authority and obligations across regulated firms, customers, regulators, and the judiciary. Who is a "designated entity", the precise scope of "cash distribution services" and "facilities access", and the content of any service or access agreement that can displace an interim direction, are matters that will be fixed by the new Act and instruments made under it. The transitional provisions make clear, however, that large civil penalties, notice obligations and limited judicial stay rights are key levers that will govern behaviour during the 24 month rollout window.

The Act creates a mix of duties, powers and rights principally through Schedule 2 transitional provisions and Schedule 1 consequential amendments. Below are the main operative duties and rights, quoted and paraphrased with their statutory sources.

ACCC powers and duties during the transition period

• Power to give interim directions: Schedule 2 item 2(1) states "During the transition period, the ACCC may, by legislative instrument, give a designated entity a direction (an interim direction) requiring the designated entity to provide cash distribution services or facilities access to a customer on terms (including terms relating to price or a method of ascertaining price) specified in the direction." This is a positive power, exercised by legislative instrument, enabling the ACCC to mandate service or access provision.
• Scope of interim direction: item 2(2)-(5) allows the ACCC to target particular entities, classes, services, facilities or customers, to require new or continued provision, to specify reporting obligations, and to set or extend timeframes. Interim directions may be limited by existing service/access agreements (item 2 note and item 5(2)).
• No procedural fairness obligation: item 3(2) says "The ACCC is not required to observe any requirements of procedural fairness in relation to the giving, varying or revoking of an interim direction." This removes the common law procedural fairness safety net for these decisions.
• Consideration obligations: item 3(1) conditions the ACCC’s power, requiring the ACCC to reasonably believe that giving the direction is appropriate to manage risks that could have a material effect on "the availability of cash in Australia" or "the continued provision of cash distribution services that are critical to the availability of cash in Australia." Item 3(1A) requires the ACCC to "have regard to any relevant cash‑related contractual chain orders" and permits consultation with the Fair Work Commission or Fair Work Ombudsman in relation to interactions with such orders.
• Variation and revocation: item 4(1)-(2) permit the ACCC to vary or revoke interim directions by legislative instrument and item 4(3) provides that interim directions are repealed at the end of the transition period.

Designated entity duties and notice obligations

• Compliance duty: item 5(1) makes a designated entity liable to a civil penalty if an interim direction applies and the entity fails to comply. The civil penalty amounts are significant and are specified in item 5(1) as penalty units with an alternative calculation based on the court determining the benefit derived and detriment avoided, multiplied by three.
• Notice in negotiations: items 5(3) and 5(4) create a duty to give written notices when participating in negotiations about service or access agreements or proposed variations. The notice must inform the other party of the ACCC’s interim power and that interim directions may affect terms or require provision of services, and must notify the person if an interim direction applies. Failure to give these notices attracts additional civil penalties (5,000 penalty units for bodies corporate under item 5(3), and the same for item 5(4)).
• Exception for existing agreements: item 5(2) provides that an interim direction does not apply to the extent there is a service/access agreement "in force" entered into before designation and not varied since. The defendant bears an evidential burden on this point (note following 5(2), referring to s 96 of the Regulatory Powers Act). The interplay with the list in item 6(5)(f) gives contractual arrangements a specific protective role.

Information sharing and use

• ACCC to Reserve Bank disclosure: Schedule 1 item 9 inserts new s 157AAA into the Competition and Consumer Act. It provides that "The Commission or a Commission official may disclose to: (a) the Reserve Bank of Australia; or (b) a person who is an officer ... any information that it obtains under this Act that is relevant to the functions or powers of the Reserve Bank of Australia under the cash distribution framework." Subsection (2) allows the Reserve Bank to "use the information for any purpose connected with the performance of the Reserve Bank’s functions or the exercise of its powers under the cash distribution framework." Subsection (3) allows the ACCC to impose conditions on disclosure.
• Protected information adjustments: Schedule 1 amends the definitions of "protected information" and "protected document" in s 79A of the Reserve Bank Act to include information obtained under, or given in confidence to, the Reserve Bank in relation to the cash distribution framework (items 17-25). Subsection 79A(6AA) allows disclosure of protected information to the ACCC where the disclosure will assist the ACCC to perform its functions under the cash distribution framework.

Corporations Act safe harbour

• Preventing appointment of external administrator: Schedule 1 item 11 inserts s 588GAAD into the Corporations Act. It provides that "Subsection 588G(2) does not apply in relation to a person and a debt incurred by a body corporate if the debt is incurred: (a) at a time while section 73 of the Cash Distribution Framework Act 2026 prevents the appointment of an external administrator; and (b) in the ordinary course of the body corporate’s business, or with the written consent of the Reserve Bank or by order of the Court." This is framed as an exception to the usual insolvent trading rule and includes an evidential burden allocation for a person relying on it (item 11(2)).

Instrument hierarchy and non‑disallowable character of interim directions

• Non‑disallowable and stay limitations: item 6(1) states "Section 42 (disallowance) of the Legislation Act 2003 does not apply to an interim direction, or an instrument that varies or revokes an interim direction." Items 6(3) and 6(4) limit the availability of stays under certain judicial review provisions and require courts not to make orders staying the operation or implementation of such ACCC decisions pending judicial applications under subsection 39B(1) of the Judiciary Act 1903.

Other rights and duties

• Incorporation of undertakings: item 6(2) allows interim directions to apply matters by incorporating undertakings accepted by the ACCC under s 87B of the Competition and Consumer Act or undertakings accepted under s 114 of the Regulatory Powers Act. Item 6(5) establishes a non‑displacement rule: other specified instruments prevail to the extent of any inconsistency with an interim direction, and that list includes determinations under the new Act, several types of standards, undertakings, negotiated agreements in certain circumstances, and directions by the Reserve Bank under parts of the new Act.

On their face, these provisions create a strong temporary enforcement architecture to secure access to cash distribution services during the two year transition, combining administrative compulsion, civil penalties, constrained judicial relief and mandated information sharing between the ACCC and the Reserve Bank. The Act assigns decision discretion to the ACCC during the transition, but attaches substantive conditions the ACCC must believe apply and procedural limitations that reduce opportunities for interim judicial intervention.

The Act specifies civil penalties, enforcement pathways, investigatory alignments, and procedural constraints relevant to interim directions and related obligations during the transition period.

Civil penalties for non‑compliance with interim directions

• Item 5(1) makes clear that a designated entity is "liable to a civil penalty" if an interim direction applies and the entity fails to comply. The civil penalty is prescribed as follows:
  • For a body corporate, "the greater of: (i) 50,000 penalty units; and (ii) if the court can determine the benefit derived and detriment avoided because of the contravention,that amount multiplied by 3."
  • For an individual, "the greater of: (i) 5,000 penalty units; and (ii) if the court can determine the benefit derived and detriment avoided because of the contravention,that amount multiplied by 3." These amounts are large in nominal terms because penalty units convert to dollar amounts under the Penalty Units Act or relevant scheme, and the alternative multiplicative calculation allows courts to impose penalties tied to quantified gains or avoided losses.

Civil penalties for notice failures in negotiations

• Items 5(3) and 5(4) create separate civil penalty exposures for designated entities that fail to give required written notices when participating in negotiations for proposed service or access agreements, or variations. The civil penalty for these notice failures is set at:
  • For a body corporate, 5,000 penalty units.
  • For an individual, 1,000 penalty units. These are separate from the compliance penalty under 5(1) and attach to different conduct risks: failing to inform counterparties that the ACCC has interim direction powers or failing to disclose when an interim direction applies during negotiations.

Liability of individuals

• Notes to items 5(1), 5(3) and 5(4) cross‑reference section 92 of the Regulatory Powers Act, indicating an individual may be liable for ancillary contraventions. That means company officers or others who are knowingly involved in a contravention may be exposed to penalty risks.

Burden of proof and evidential burden

• Item 5(2) contains a defence rule that an interim direction does not apply to a designated entity in relation to the provision of a service or access to the extent there is a qualifying service or access agreement in force entered into before designation and not varied since. The text notes that a defendant bears an evidential burden on this matter, referencing section 96 of the Regulatory Powers Act. Item 11 in Schedule 1 (Corporations Act safe harbour s 588GAAD) similarly allocates an evidential burden to a person wishing to rely on the exception.

Enforcement mechanisms and instruments

• Schedule 2 item 7(1)(a) specifies that section 188 of the new Act applies as if it included a reference to "monitoring, investigating and enforcing compliance with this Schedule" and that the defined term "cash distribution framework" in the Competition and Consumer Act applies to this Schedule. Item 7(2) aligns the Regulatory Powers Act with this Schedule by treating the civil penalty provisions in item 5 as civil penalty provisions of the new Act for the purposes of the Regulatory Powers Act (item 7(2)(a)). Item 7(2)(b) adopts a reference to "this Act" in several Regulatory Powers Act provisions as encompassing the Schedule, therefore incorporating infringement notice, enforceable undertaking and injunction tools where applicable.

Non‑disallowable instrument and constrained judicial relief

• Item 6(1) expressly provides that "Section 42 (disallowance) of the Legislation Act 2003 does not apply to an interim direction, or an instrument that varies or revokes an interim direction," meaning interim directions cannot be disallowed by Parliament under the standard disallowance mechanism. Item 6(3) disapplies certain provisions of the Administrative Decisions (Judicial Review) Act 1977 in relation to ACCC decisions to give or vary an interim direction. Item 6(4) dictates that if a person applies to the Federal Court under subsection 39B(1) of the Judiciary Act 1903 for a writ or injunction in relation to a decision of the ACCC to give or vary an interim direction, the Court "must not make any orders staying or otherwise affecting the operation or implementation of the decision pending the finalisation of the application." Together, these provisions materially constrain both parliamentary disallowance and immediate judicial suspension of ACCC interim directions.

Incorporation of undertakings and instrument hierarchy

• Item 6(2) allows an interim direction to apply or incorporate, with or without modification, matters contained in undertakings accepted under s 87B of the Competition and Consumer Act or s 114 of the Regulatory Powers Act. Item 6(5) provides a list of instruments that prevail over an inconsistent interim direction, including determinations under the new Act, service‑level and cash distribution standards, resolvability standards, certain undertakings, specified service agreements, and Reserve Bank directions under defined parts of the new Act. Practically, this creates an instrument hierarchy in which some regulatory and contractual arrangements can displace the ACCC’s interim compulsion to the extent they are inconsistent.

Information sharing and use limitations

• Schedule 1 item 9 (s 157AAA) permits the ACCC to disclose information obtained under the Competition and Consumer Act to the Reserve Bank where relevant to the Reserve Bank’s cash distribution framework functions, subject to the ACCC’s ability to impose conditions on disclosure. The Reserve Bank may use such information "for any purpose connected with the performance of the Reserve Bank’s functions or the exercise of its powers under the cash distribution framework." The statutory text also notes that the Privacy Act 1988 contains relevant provisions.

Collectively, enforcement under these transitional provisions is built around the ACCC’s instrument power, civil penalties calibrated either as fixed penalty unit sums or as multiples of quantified benefits/detriments, investigatory and Regulatory Powers Act tools, constrained parliamentary and judicial checks on interim directives, and an explicit instrument hierarchy. The Act places significant enforcement risk on designated entities during the 24 month transition, while carving out protections for certain contractual arrangements and allowing courts to conditionally factor in quantified benefits or avoided detriments when fixing penalties.

The Act is explicitly drafted to embed the cash distribution framework into several existing Commonwealth statutes, and to make the transitional Schedule integrate with the enforcement, evidence and procedural machinery of those statutes. The instrument both amends definitions in other Acts and specifies almost bespoke interaction rules, which change the legal relationships that might otherwise obtain.

Amendments that extend the "cash distribution framework" concept into other Acts

• Competition and Consumer Act 2010: Schedule 1 item 1 inserts the term "cash distribution framework" into s 4(1) of the Competition and Consumer Act, and items throughout Schedule 1 add references to the cash distribution framework into other provisions of that Act (see items 2-9). This makes the cash distribution framework a concept for the ACCC’s powers and information regimes. Item 9 inserts a new s 157AAA, permitting ACCC to disclose relevant information to the Reserve Bank.
• Reserve Bank Act 1959: Schedule 1 items 14-25 insert "cash distribution framework" into the Reserve Bank Act definitions and responsibilities. For example, s 10B(1) gets an addition (item 16) so that the Board has a function "to ensure the Bank’s functions and powers under the cash distribution framework are performed and exercised in a way that, in the Board’s opinion, best contributes to the availability of cash." These changes link operational decisions of the Bank to the new framework.
• Corporations Act 2001: Schedule 1 item 11 inserts s 588GAAD as a safe harbour to modify insolvent trading rules where section 73 of the new Act prevents appointment of an external administrator. This adds a statutory exception that alters the interplay between insolvency law and the cash distribution framework.
• Payment Systems and Netting Act 1998: Schedule 1 items 12-13 adjust definitions of external administration and specified provisions to include a statutory manager taking control under the new Act, and to specify that certain sections of the new Act are specified provisions.

Interaction with the Regulatory Powers Act and enforcement architecture

• The definition of "cash distribution framework" expressly includes "the Regulatory Powers Act to the extent that it applies in relation to a provision of that Act" in the Competition and Consumer Act insertion (Schedule 1, item 1(d)). Item 7 of Schedule 2 then directs that, for applying the Regulatory Powers Act in relation to the Schedule, references to civil penalty provisions in the new Act be taken to include the civil penalty provisions in item 5 of the Schedule. Item 7(2) also instructs that references to "this Act" in sections of the Regulatory Powers Act be read as encompassing the Schedule. In practice, this aligns the interim directions and penalties with the suite of enforcement tools and procedural rules already in the Regulatory Powers Act, including infringement notices, enforceable undertakings, and injunction processes.

Judicial review and stay constraints

• Schedule 2 item 6(3) disapplies paragraphs 15(1)(a) and (b) and 15A(1)(a) and (b) of the Administrative Decisions (Judicial Review) Act 1977 in relation to ACCC decisions to give or vary an interim direction, removing certain ADJR Act remedies for those decisions. Item 6(4) requires that, in applications to the Federal Court for writs or injunctions under subsection 39B(1) of the Judiciary Act 1903, the Court "must not make any orders staying or otherwise affecting the operation or implementation of the decision pending the finalisation of the application." These provisions narrow the interaction between the interim direction power and established judicial review or equitable relief pathways.

Interaction with contractual law and service agreements

• Schedule 2 item 5(2) provides an exception to the application of an interim direction where a qualifying service or access agreement is already in force, defined by timing relative to the entity's designation and by non‑variation since designation. Item 6(5)(f) further lists as a prevailing instrument a service agreement or access agreement "if: (i) a designated entity has specifically negotiated terms with a person ...; and (ii) the designated entity has entered into the service agreement ... on those terms; and (iii) the interim direction would otherwise apply in relation to those services or that access." These rules create a specific legal interaction between the ACCC’s statutory power and private bilateral contracts, protecting certain pre‑existing negotiated arrangements from displacement by interim directions.

Interaction with undertakings and other instruments

• Item 6(2) permits an interim direction to apply, adopt or incorporate undertakings accepted under s 87B of the Competition and Consumer Act 2010 or s 114 of the Regulatory Powers Act. Item 6(5)(e) also lists an undertaking accepted by the ACCC under s 87B as an instrument that prevails over an inconsistent interim direction. The Act therefore folds undertakings into the space of feasible interim direction content while also treating some undertakings as having primary status for inconsistency resolution.

Information law and privacy

• Schedule 1 item 9 (new s 157AAA) authorises disclosures from the ACCC to the Reserve Bank and officers for cash distribution framework purposes, and the Reserve Bank may use the information "for any purpose connected with the performance of the Reserve Bank’s functions ... under the cash distribution framework." The inserted text includes an express note that "The Privacy Act 1988 also contains provisions relevant to the use and disclosure of information," but does not limit the disclosure power to compliance with privacy obligations. The Reserve Bank Act amendments also expand the definition of protected information and carve out specific disclosure pathways, including allowing the Reserve Bank to disclose to the ACCC where that would assist the ACCC to perform functions under the cash distribution framework (Schedule 1, items 22).

Corporations insolvency law interaction

• Schedule 1 item 11 inserts s 588GAAD into the Corporations Act, which exempts debts incurred during times when s 73 of the new Act prevents the appointment of external administrators from the application of subsection 588G(2). This creates a specific statutory interface between the cash distribution framework (and the new Act’s crisis resolution provisions) and the usual insolvent trading regime, potentially reducing creditor and director exposure during periods of statutory restriction on external administration.

Net effect

• The Act, through its amendments and transitional provisions, integrates the cash distribution framework across competition law, central banking law, corporate insolvency law, payments law and administrative law. It gives the ACCC a strong temporary compulsion power to secure service and access provision for cash distribution while shielding some instruments and contracts from displacement, and aligns existing enforcement and information sharing regimes to the framework’s goals. The instrument preserves some contractual autonomy but narrows immediate judicial and parliamentary avenues for displacing ACCC interim directions during the two year transition.

This Act is drafted as a consequential and transitional instrument tied to the primary Cash Distribution Framework Act 2026 (the new Act). The Act’s own commencement is expressly linked to the commencement of the new Act, with the commencement table indicating both Acts commence together and showing the date 27 August 2026 for publication purposes, subject to the new Act actually commencing (s 2(1) and the commencement table). Beyond that, the Act does not itself contain an internal amendment history because it is a newly enacted measure. However, the Act’s text includes a commencement note that the table "relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act" (s 2(2) note).

The substantive amendment history in effect is contained in Schedule 1 which inserts, repeals and substitutes text into many existing Acts. The Schedule’s items function as immediate amendments to those Acts upon commencement. Specifically:

• The Competition and Consumer Act 2010 is amended across multiple provisions: s 4(1) gets a new definition of "cash distribution framework" (Schedule 1 item 1); s 19(1) and s 19(7) are amended to add the cash distribution framework into existing references; s 87B(1) and related sections are expanded in definition and scope to include aspects of the cash distribution framework (items 2-8); and a new s 157AAA is inserted to permit ACCC disclosures to the Reserve Bank (item 9). Paragraph 155(2)(a) is expanded (item 5), and the definition of "designated cash distribution framework matter" is added to s 155 (item 7).

• The Corporations Act 2001 is amended to change a note in s 459P(1) to reference the Reserve Bank’s ability to apply to the Court under conditions set by the new Act, and to add a new s 588GAAD as a safe harbour that interacts with the new Act’s restrictions on external administration (items 10-11).

• The Payment Systems and Netting Act 1998 has its definitions altered to include statutory managers appointed under the new Act as a form of "external administration" and to add sections of the new Act to the list of specified provisions (items 12-13).

• The Reserve Bank Act 1959 is amended to insert "cash distribution framework" into s 5(1) and to expand the Bank’s functions under s 10B(1) to include ensuring its cash distribution framework functions are exercised to best contribute to the availability of cash. Definitions of officer, protected document and protected information are adjusted to include cash distribution framework matters, and specific disclosure permissions to the ACCC are added (items 14-28).

Schedule 2 contains transitional provisions that have a limited temporal operation. It defines the "transition period" as 24 months (item 1), grants the ACCC interim direction powers during that period (item 2), lays out procedural and enforcement rules (items 3-6), and aligns the Schedule with the Competition and Consumer Act and the Regulatory Powers Act for enforcement and investigatory purposes (item 7). Item 8 makes a number of provisions of the new Act apply to the Schedule for specified purposes, such as directions by the Reserve Bank, use and disclosure of information, and compensation provisions.

Because this Act functions as consequential and transitional legislation, the amendment history is functionally the list of insertions and substitutions in the Schedules. There are no later‑stage amendments recorded in the text provided. Any subsequent changes to these inserted provisions would appear as amendments to the underlying Acts in future amending instruments; the Act contains the note that the commencement table applies to the Act as originally enacted and will not be amended to reflect later amendments.

The text of the Act as provided contains no record of litigation history. It is a recently enacted piece of consequential and transitional legislation intended to operate in conjunction with the primary Cash Distribution Framework Act 2026 and the commencement arrangements set out in s 2. The Schedule 2 transitional provisions, however, explicitly constrain immediate judicial intervention and modify certain procedural remedies in anticipation of litigation risk during the transition period. Relevant features that shape the litigation landscape are:

• Limitation on stays and certain ADJR remedies: Schedule 2 item 6(3) disapplies specified paragraphs of the Administrative Decisions (Judicial Review) Act 1977 in relation to ACCC decisions to give or vary an interim direction. Item 6(4) states that if a person applies to the Federal Court under subsection 39B(1) of the Judiciary Act 1903 for a writ or injunction in relation to an ACCC decision to give or vary an interim direction, "the Court must not make any orders staying or otherwise affecting the operation or implementation of the decision pending the finalisation of the application." These provisions are procedural constraints designed to reduce the practical effect of immediate judicial relief during the transition period.

• Interaction with enforcement and remedies: Schedule 2 item 7(1)(a) adapts s 188 of the new Act to include monitoring and enforcement of the Schedule, and item 7(2) assimilates the civil penalty provisions in item 5 of Schedule 2 into the Regulatory Powers Act enforcement structure, making established enforcement mechanisms (infringement notices, enforceable undertakings, injunctions) available in relation to the Schedule.

Although there are no reported cases within the Act text, a number of litigation vectors are implied by statutory design:

• Challenges to the validity of interim directions could be mounted, but the statutory disallowance and stay limits narrow immediate parliamentary and court‑ordered suspensions.
• Litigation over whether an interim direction applies where a service or access agreement pre‑exists is foreseen; item 5(2) assigns an evidential burden to defendants to show the existence and timing of such agreements, which will shape evidentiary dispute dynamics in court.
• Enforcement proceedings for civil penalties will require courts to apply the penalty unit calculations and, where possible, determine "the benefit derived and detriment avoided" to calculate a multiplied penalty figure. This introduces factual inquiries into commercial benefit and avoided loss that litigants and courts will test.
• The Corporations Act safe harbour inserted as s 588GAAD modifies insolvency litigation prospects by creating a potential defence to insolvent trading claims where the new Act prevents appointment of external administrators. The evidential burden assignment in that section will affect how directors and creditors litigate insolvency exposures.

Because the Act itself is new and designed as a transitional bridge to a substantive new Act, its actual litigation history will emerge only after designated entities, counterparties and regulators begin to use and enforce the interim powers and after courts interpret the evidential burden, penalty calculations and hierarchy provisions. The Schedule’s explicit restrictions on preliminary relief are a clear legislative attempt to steer litigation timing, but do not remove ultimate judicial review of substantive legality or merits once full proceedings are brought and determined.

The Act contains a number of provisions that can produce unexpected or non‑obvious legal effects. These are points where a close reader should note operational and compliance hazards, evidential reversals, and procedural constraints.

1. Interim directions are legislative instruments that are not disallowable

• Schedule 2 item 6(1) states "Section 42 ... does not apply to an interim direction," so interim directions cannot be disallowed by Parliament. That means political oversight through the disallowance mechanism is unavailable for these instruments during the transition period. Coupled with the lack of procedural fairness obligations for giving or varying these directions (item 3(2)), interim directions may be imposed quickly and with limited administrative procedural protections.

2. Judicial stays are constrained

• Schedule 2 item 6(4) requires the Federal Court not to issue orders staying the operation or implementation of ACCC decisions to give or vary interim directions pending judicial applications. This means immediate injunctive protection is curtailed, and litigants may be forced to litigate without an effective means to pause the ACCC’s direction. This can materially affect bargaining positions during negotiations or disputes.

3. Broad scope of ACCC direction power with significant penalty exposure

• Item 2(1) empowers the ACCC to require provision of services on specified terms, including price methods. Non‑compliance can attract very substantial civil penalties (item 5(1)): for a body corporate, the greater of 50,000 penalty units or three times the benefit derived/detriment avoided. Depending on the dollar value of a penalty unit at the relevant time, this could represent very significant sums. The option for courts to quantify benefit/detriment increases potential penalty size.

4. Evidential burden for defendants on contractual exceptions and safe harbour claims

• Item 5(2) provides an exception to the application of an interim direction where qualifying pre‑existing service/access agreements exist, but notes that "A defendant bears an evidential burden in relation to the matter in this subitem (see section 96 of the Regulatory Powers Act)." Similarly, the Corporations Act safe harbour s 588GAAD places an evidential burden on a person wishing to rely on it. In practice, this means defendants must adduce or point to evidence to suggest a reasonable possibility the defence exists, shifting initial evidentiary dynamics and potentially disadvantaging parties who lack contemporaneous documentary proof.

5. Notice obligations during negotiations impose separate penalty risk

• Items 5(3) and 5(4) require a designated entity to give written notice in certain negotiation contexts. Failure to provide such notices is a distinct civil penalty exposure separate from failure to comply with an interim direction itself. In transactions where parties are unaware of the transitional regime or the status of designation, a simple omission to provide the statutory notice could trigger enforcement exposure.

6. Instrument hierarchy preserves some instruments and contracts

• Item 6(5) lists instruments that prevail over an inconsistent interim direction, including certain undertakings, service agreements entered into on negotiated terms, and directions by the Reserve Bank under the new Act. Determining whether a given contractual arrangement meets the item 6(5)(f) threshold may be complex, and parties may wrongly assume protection without satisfying the three sub‑criteria in that paragraph.

7. Incorporation of undertakings and ambiguity about scope

• Item 6(2) allows interim directions to incorporate or adopt other instruments such as undertakings. This could result in cross‑instrument obligations or obligations that vary across time if the incorporated matter is dynamic, for example undertakings "as in force or existing from time to time." Interim directions can therefore create compliance obligations that embed changing external commitments.

8. Privacy and information sharing

• Schedule 1 item 9 (new s 157AAA) authorises the ACCC to disclose information to the Reserve Bank that is relevant to the Reserve Bank’s cash distribution framework functions, and allows the Reserve Bank to use that information for connected purposes. The text notes the Privacy Act 1988 contains relevant provisions, but does not explicitly require ACCC or Reserve Bank compliance with privacy principles in the disclosure permission. Entities must therefore be alert that information provided to the ACCC in confidence might be disclosed to the Reserve Bank under statutory authority.

9. Limited scope of safe harbour and links to new Act s 73

• The Corporations Act safe harbour depends on the new Act’s section 73 "prevent[ing] the appointment of an external administrator." How and when section 73 will operate is determined by the new Act, not this consequential Act. Parties relying on this safe harbour will need to check the new Act’s text and timing to know when the safe harbour is operable. The safe harbour also requires either ordinary course of business, written Reserve Bank consent or Court order, each of which carry their own factual and procedural hurdles.

10. Transition period is time‑bound but long

• The transition period is 24 months from commencement (Schedule 2 item 1). Interim directions are repealed at the end of that period (item 4(3)). Entities may therefore face a two year window of ACCC compulsion and heightened enforcement risk; planning based on shorter timelines could be misleading.

11. Broad definitions of cash distribution framework in multiple Acts

• The "cash distribution framework" is defined broadly and imported into multiple Acts, notably the Competition and Consumer Act and the Reserve Bank Act. Its content will include the new Act, record‑keeping rules, and "rules or any other instrument made under that Act." That breadth means many subordinate rule‑making actions under the new Act will have cross‑statutory effect beyond the principal Act, potentially triggering compliance duties in unrelated areas.

These "gotchas" flow from the combination of a powerful, non‑disallowable, temporarily unconstrained instrument power, constrained judicial and parliamentary override mechanisms, significant civil penalties, and layered interactions with corporate insolvency rules and information disclosure regimes. The statutory drafting places emphasis on regulatory expediency during the transition, with correspondingly heightened compliance and litigation complexity for affected parties.

Below is a grounded, document‑based checklist of the main compliance themes that arise directly from the Act, framed as informational points about what the statute appears to require or to create as risks to manage. This is legal information only and not advice.

1. Identify designation status and scope

• Confirm whether an entity is designated under the new Act at the relevant time. Schedule 2 repeatedly frames obligations in terms of "a designated entity" (item 2(1)). The timing for when designation takes effect is stated as "before the time the designated entity’s designation under section 14 of the new Act came into force" in item 5(2), so ascertain the exact date of designation and whether existing agreements predate it. A lawyer will want to check the new Act’s s 14 for the mechanics of designation.

2. Review existing service and access agreements

• Item 5(2) provides that interim directions do not apply to the extent there is a qualifying service/access agreement "entered into before the time the designated entity’s designation under section 14 of the new Act came into force, and the agreement has not been varied since that time." To rely on this exception, maintain contemporaneous records showing the date of agreement, the exact terms, and evidence there has been no variation since designation. The defendant bears an evidential burden to raise this matter (note under item 5(2)), so documentation will be critical.

3. If negotiating new agreements, give the statutory notice

• Schedule 2 items 5(3) and 5(4) require a designated entity to give written notice when it participates in negotiations about proposed service/access agreements or proposed variations. The notice must state the ACCC’s power to make interim directions and the effect those directions could have on terms, and must inform the other person if an interim direction applies to the entity. Failure to give this notice carries civil penalties (5,000 penalty units for bodies corporate per item 5(3) and item 5(4)). Keep templates and records of written notices provided when negotiations commence.

4. Plan for compliance with any interim direction

• If an interim direction is given to an entity, item 2(4) permits the direction to specify compliance timeframes. Item 5(1) creates a civil penalty for non‑compliance. Entities subject to an interim direction should obtain the text as a legislative instrument, identify the precise obligations (service provision, facilities access, pricing method, reporting obligations), and consider documentary evidence of performance. Because courts can calculate penalties as three times the benefit derived or detriment avoided if that can be determined (item 5(1)), maintain contemporaneous commercial records that could be used either to demonstrate compliance or, if challenged, to quantify benefit/detriment.

5. Be alert to reporting obligations in interim directions

• Item 2(3)(c) allows an interim direction to require reporting or provision of documents to the ACCC. Ensure information systems can extract and provide requested data within the period specified. Keep note that the ACCC may impose conditions on disclosures under s 157AAA when sharing information with the Reserve Bank (Schedule 1 item 9(3)).

6. Preserve negotiation and contract documentation to meet evidential burdens

• Several provisions put an evidential burden on defendants (item 5(2) for contract exception; Schedule 1 item 11(2) for s 588GAAD safe harbour). Preserve emails, signed agreements, board minutes, written consents, and contemporaneous negotiation records. Where possible, have dated and signed records demonstrating agreement entry dates and non‑variation clauses.

7. Understand the instrument hierarchy and when an interim direction can be displaced

• Item 6(5) lists instruments that prevail over an inconsistent interim direction, including certain undertakings, service agreements entered into on negotiated terms, and Reserve Bank directions under the new Act. If an entity believes a particular instrument overrides an interim direction, ensure the requisite elements in item 6(5)(f) are satisfied and documented: specifically that terms were negotiated and the entity has entered into the agreement as the provider on those terms.

8. Consider information disclosure implications

• Information provided to the ACCC may be disclosed to the Reserve Bank under the new s 157AAA (Schedule 1 item 9). If documents are likely to be provided to the ACCC, consider confidentiality and privacy implications and whether any protective conditions are appropriate under item 9(3), which permits the Commission to "impose conditions to be complied with in relation to information disclosed."

9. Monitor Reserve Bank directions and the new Act’s crisis measures

• Item 6(5)(g) lists as prevailing instruments Reserve Bank directions under specified parts of the new Act. Keep track of any Reserve Bank "crisis readiness" or "crisis resolution" directions under the new Act (referenced in item 6(5)(g) as Division 4 of Part 6 and Division 3 of Part 7 of the new Act). These may displace or supersede interim ACCC directions in specific circumstances.

10. For directors and creditors, check insolvency interaction carefully

• The Corporations Act insertion s 588GAAD (Schedule 1 item 11) creates a narrow safe harbour when the new Act prevents appointment of external administrators. Its operation depends on section 73 of the new Act and contains evidential burden rules. Directors and creditors should confirm whether and when the new Act prevents external administration and whether debts were incurred in the ordinary course of business or with Reserve Bank consent or court order.

11. Security over compliance with privacy and regulatory obligations

• While s 157AAA permits ACCC to share information with the Reserve Bank, it also notes the Privacy Act 1988 contains provisions relevant to use and disclosure. If providing personal or commercially sensitive information to the ACCC, be aware that privacy obligations may still constrain or shape permissible disclosures and that the ACCC can impose conditions on disclosures.

12. Prepare for a sustained transition window

• The transition period is 24 months (Schedule 2 item 1). Entities should plan resourcing, legal and operational readiness and contractual arrangements with this two year window in mind.

These items are a statutory reading of the obligations and mechanisms in the Act. They indicate recordkeeping, contractual timing, notice practices, information governance, and operational readiness areas to monitor. A lawyer would inspect the new Act’s definitions of "designated entity", "cash distribution services", "facilities access", and the text of section 73 and section 14 in the new Act to determine precise triggers and application. Keep contemporaneous, dated, signed documentation for agreements and negotiations to meet the evidential burdens the Schedule prescribes.

This is general legal information, not legal advice. I can make mistakes. Before you rely on this, act on it, or use any draft or checklist in formal dealings, get a qualified Australian lawyer to check the specifics against the Cash Distribution Framework Act 2026 and other relevant instruments.