Section 588GAAD - Cash Distribution Framework (Consequential Amendments and Transitional Provisions) Act 2026 - Safe harbour—Prevention of appointment of external administrator under the Cash Distribution Framework Act 2026 | Zoe
Cash Distribution Framework (Consequential Amendments and Transitional Provisions) Act 2026
588GAADSafe harbour—Prevention of appointment of external administrator under the Cash Distribution Framework Act 2026
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588GAAD Safe harbour—Prevention of appointment of external administrator under the Cash Distribution Framework Act 2026
(1) 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.
(2) A person who wishes to rely on subsection (1) in a proceeding for, or relating to, a contravention of subsection 588G(2) bears an evidential burden in relation to that matter.
(3) In this section:
evidential burden, in relation to a matter, means the burden of adducing or pointing to evidence that suggests a reasonable possibility that the matter exists or does not exist.
Payment Systems and Netting Act 1998
12 Section 5 (after paragraph (daa) of the definition of external administration)
Insert:
(dab) a statutory manager takes control of the person’s business under the Cash Distribution Framework Act 2026; or
13 Section 5 (after paragraph (d) of the definition of specified provisions)
Insert:
(da) sections 88, 141 to 146 and 154 of the Cash Distribution Framework Act 2026; and
Reserve Bank Act 1959
14 Subsection 5(1)
Insert:
cash distribution framework means:
(a) the Cash Distribution Framework Act 2026; or
(b) rules or any other instrument made under that Act; or
(c) the Regulatory Powers (Standard Provisions) Act 2014 as it applies in relation to that Act.
15 Subsection 5(1) (at the end of the definition of payments system policy)
Add:
; and (d) the cash distribution framework.
16 After paragraph 10B(1)(d)
Insert:
(da) 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 (as defined by the Cash Distribution Framework Act 2026) in Australia; and
17 Subsection 79A(1) (definition of officer) (example)
Omit “under Part 7.3B of the Corporations Act 2001,”, substitute “, either under Part 7.3B of the Corporations Act 2001 or under Part 7 of the Cash Distribution Framework Act 2026,”.
18 Subsection 79A(1) (definition of protected document)
After “Reserve Bank under”, insert “the cash distribution framework or”.
19 Subsection 79A(1) (definition of protected information)
After “Reserve Bank under”, insert “the cash distribution framework or”.
20 Subsection 79A(2)
After “Banking Act 1959,”, insert “the cash distribution framework,”.
21 After paragraph 79A(4)(b)
Insert:
(baa) a statutory manager of a body corporate under Part 7 of the Cash Distribution Framework Act 2026; or
22 After subsection 79A(6A)
Insert:
(6AA) Subsection (2) does not prohibit a person from disclosing protected information, or producing a protected document, to the Australian Competition and Consumer Commission if the person is satisfied that the disclosure of the information, or the production of the document, to that body will assist it to perform its functions or exercise its powers under the cash distribution framework.
(6AB) Subsection (2) does not prohibit a person from disclosing protected information, or producing a protected document, to another person if the disclosure of the information, or the production of the document, is in accordance with section 179 of the Cash Distribution Framework Act 2026.
Note: Section 179 of the Cash Distribution Framework Act 2026 allows for the sharing of information between the Reserve Bank and certain persons (including the Australian Competition and Consumer Commission).
23 Paragraph 79A(6B)(a)
After “Reserve Bank under”, insert “the cash distribution framework or”.
24 Paragraph 79A(6B)(b)
After “Reserve Bank under”, insert “the cash distribution framework or”.
25 Subsection 79A(8)
After “Banking Act 1959,”, insert “the cash distribution framework,”.
26 Subparagraph 84A(1)(a)(iv)
Omit “; and”, substitute “; or”.
27 At the end of paragraph 84A(1)(a)
Add:
(v) the cash distribution framework; and
28 Paragraph 84A(2)(a)
Omit all the words after “conferred by”, substitute:
or under:
(iii) Part 7.3 (licensing of clearing and settlement facilities) or 7.3B (crisis resolution of CS facility licensees) of the Corporations Act 2001; or
(iv) the cash distribution framework; and
Schedule 2—Transitional provisions
1 Definitions
(1) In this Schedule:
interim direction means a direction given under subitem 2(1) (including as varied).
new Act means the Cash Distribution Framework Act 2026.
transition period means the period of 24 months beginning on the day this Schedule commences.
(2) An expression used in a provision of this Schedule and in the new Act has the same meaning in that provision as it has in the new Act.
2 Interim power for ACCC to give directions while cash distribution framework is being implemented
(1) 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.
Note: An interim direction may not apply to a designated entity if a service agreement or access agreement for the provision of the cash distribution services or facilities access is already in force at the time of the entity’s designation (see subitem 5(2)).
(2) An interim direction may be expressed to apply in relation to any or all of the following:
(a) a particular designated entity or a specified class or classes of designated entities;
(b) a particular cash distribution service or a specified class or classes of cash distribution services;
(c) a particular facilities access or a specified class or classes of facilities access;
(d) a particular customer or a specified class or classes of customers.
(3) An interim direction may require a designated entity to do any or all of the following:
(a) to provide cash distribution services or facilities access to a new customer on terms (including terms relating to price or a method of ascertaining price) specified in the direction;
(b) to continue to provide cash distribution services or facilities access to a customer to which the designated entity already provides, or has previously provided, such services or access, on terms (including terms relating to price or a method of ascertaining price) specified in the direction;
(c) to report information or provide documents to the ACCC in relation to the provision of the cash distribution services or facilities access to which the interim direction applies.
(4) An interim direction may:
(a) specify the time by which, or the period during which, the direction must be complied with; or
(b) provide for a process for extending a time or period so specified (if appropriate).
(5) An interim direction may:
(a) specify the period during which a designated entity must provide the cash distribution services or facilities access; or
(b) specify the period for which the direction remains in force.
Note: All interim directions are repealed at the end of the transition period (see subitem 4(3)).
Interactions
(6) None of subitems (2) to (5) limit subitem (1).
(7) Subitem (2) does not limit subsection 33(3A) of the Acts Interpretation Act 1901.
3 Procedural matters for giving interim directions
(1) The ACCC must not give an interim direction unless the ACCC reasonably believes that giving the direction is appropriate to manage or respond to a risk or potential risk of circumstances arising during the transition period that could have a material effect on:
(a) the availability of cash in Australia; or
(b) the continued provision of cash distribution services that are critical to the availability of cash in Australia.
(1A) In giving, varying or revoking an interim direction, the ACCC:
(a) must have regard to any relevant cash‑related contractual chain orders; and
(b) may consult the Fair Work Commission or the Fair Work Ombudsman in relation to interactions with any such orders.
(2) The ACCC is not required to observe any requirements of procedural fairness in relation to the giving, varying or revoking of an interim direction.
4 Variation, revocation and repeal of interim directions
(1) The ACCC may, by legislative instrument, vary an interim direction.
(2) The ACCC may, by legislative instrument, revoke an interim direction.
(3) Unless revoked earlier, an interim direction is repealed at the end of the transition period.
5 Obligations on designated entities in relation to interim directions
Failure to comply with an interim direction
(1) A designated entity is liable to a civil penalty if:
(a) an interim direction applies to the designated entity; and
(b) the designated entity fails to comply with the interim direction.
Note 1: An individual may be liable for an ancillary contravention of this civil penalty provision (see section 92 of the Regulatory Powers Act).
Note 2: There is an exception to this civil penalty provision in section 195A (interactions with cash‑related contractual chain orders) of the new Act, as modified by subitem 8(2) of this Schedule.
Civil penalty:
(a) 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; and
(b) 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.
(2) An interim direction does not apply to a designated entity, in relation to the designated entity’s provision of a cash distribution service or facilities access to a customer, to the extent that:
(a) there is in force a service agreement or access agreement between the designated entity and the customer for the provision of that service or access; and
(b) the agreement was 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.
Note: A defendant bears an evidential burden in relation to the matter in this subitem (see section 96 of the Regulatory Powers Act).
Designated entity must give notice of certain matters relating to interim directions
(3) A designated entity is liable to a civil penalty if:
(a) during the transition period the entity participates in negotiations regarding:
(i) a proposed service agreement or access agreement with the other person; or
(ii) a proposed variation of a service agreement or access agreement with the other person; and
(b) at the time the entity starts to participate in the negotiations, the entity fails to give the other person written notice that:
(i) the ACCC has the power during the transition period to give interim directions to the designated entity under this Schedule; and
(ii) an interim direction may require the designated entity to provide cash distributions services or facilities access to the person, or may affect the terms (including terms relating to price or a method of ascertaining price) on which such services or access are provided to the person; and
(iii) the designated entity has an obligation to notify the person if an interim direction has been or is given to the entity.
Note: An individual may be liable for an ancillary contravention of this civil penalty provision (see section 92 of the Regulatory Powers Act).
Civil penalty:
(a) for a body corporate—5,000 penalty units; and
(b) for an individual—1,000 penalty units.
(4) A designated entity is liable to a civil penalty if:
(a) the entity participates in negotiations regarding:
(i) a proposed service agreement or access agreement with the other person; or
(ii) a proposed variation of a service agreement or access agreement with the other person; and
(b) an interim direction, that applies to the cash distribution services or facilities access to which the proposed agreement or variation relates, either:
(i) applies to the entity at the time the entity starts to participate in the negotiations; or
(ii) begins to apply to the entity at any time during the period in which the negotiations are undertaken; and
(c) the entity fails to give the other person written notice of the fact that the interim direction applies to the entity:
(i) in the case of subparagraph (b)(i)—at the time the entity starts to participate in the negotiations; or
(ii) otherwise—within a reasonable time after the interim direction begins to apply to the entity.
Note: An individual may be liable for an ancillary contravention of this civil penalty provision (see section 92 of the Regulatory Powers Act).
Civil penalty:
(a) for a body corporate—5,000 penalty units; and
(b) for an individual—1,000 penalty units.
Continuing contraventions not applicable
(5) Subsection 93(2) of the Regulatory Powers Act does not apply in relation to a contravention of subitem (1), (3) or (4).
6 Other matters relating to interim directions
Interim directions not disallowable
(1) 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.
Incorporation of other instruments
(2) Despite subsection 14(2) of the Legislation Act 2003, an interim direction may make provision in relation to a matter by applying, adopting or incorporating, with or without modification, any matter contained in the following as in force or existing from time to time:
(a) an undertaking accepted by the ACCC under section 87B of the Competition and Consumer Act 2010;
(b) an undertaking accepted under section 114 of the Regulatory Powers Act, as that Act applies in relation to the new Act.
Note: Undertakings that relate to this Schedule will also be covered by paragraphs (2)(a) and (b) (see paragraph 7(1)(b) and subparagraph 7(2)(a)(iii) of this Schedule).
Stay of interim directions
(3) Paragraphs 15(1)(a) and (b) and 15A(1)(a) and (b) of the Administrative Decisions (Judicial Review) Act 1977 do not apply to a decision of the ACCC to give or vary an interim direction.
(4) 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.
Other instrument prevails to the extent of any inconsistency
(5) If there is an inconsistency between an interim direction and any of the following instruments, that instrument prevails over the interim direction to the extent of the inconsistency:
(a) a determination under subsection 54(1) of the new Act;
(b) a service‑level standard;
(c) a cash distribution standard;
(d) a resolvability standard;
(e) an undertaking accepted by the ACCC under subsection 87B(1) of the Competition and Consumer Act 2010;
(f) a service agreement or access agreement, if:
(i) a designated entity has specifically negotiated terms with a person for the provision of cash distribution services or facilities access; and
(ii) the designated entity has entered into the service agreement or access agreement as the provider of those services or that access to the person on those terms; and
(iii) the interim direction would otherwise apply in relation to those services or that access;
(g) a direction given by the Reserve Bank under Division 4 of Part 6 (crisis readiness) or Division 3 of Part 7 (crisis resolution) of the new Act.
Note: See also section 195A of the new Act, as modified by subitem 8(2) of this Schedule, in relation to interactions between interim directions and cash‑related contractual chain orders.
7 Other interim powers of the ACCC
Powers under the Competition and Consumer Act 2010
(1) For the purposes of this Schedule:
(a) section 188 of the new Act applies as if that provision included a reference to monitoring, investigating and enforcing compliance with this Schedule; and
(b) the definition of cash distribution framework in subsection 4(1) of the Competition and Consumer Act 2010, as inserted by Schedule 1 to this Act, applies as if that definition included a reference to this Schedule.
Note 1: The ACCC has powers under section 155 of the Competition and Consumer Act 2010 that can be used to monitor and investigate in relation to the cash distribution framework.
Note 2: The effect of paragraph (1)(b) in relation to section 87B of the Competition and Consumer Act 2010 (as amended by Schedule 1 to this Act) is that undertakings may be given under that section in relation to this Schedule.
Powers under the Regulatory Powers Act
(2) For the purposes of applying the Regulatory Powers Act in relation to this Schedule:
(a) a reference in any of the following provisions of the new Act to a civil penalty provision is taken to include a reference to the civil penalty provisions in item 5 of this Schedule:
(i) subsection 183(1), paragraph 183(2)(b) and subsections 183(3), (4) and (5);
(ii) subparagraph 184(1)(a)(i);
(iii) subsection 185(1), paragraph 185(2)(b) and subsection 185(3);
(iv) paragraphs 186(1)(a) and 186(2)(b); and
(b) a reference to “this Act” in section 183 (civil penalty provisions), 184 (infringement notices), 185 (enforceable undertakings) or 186 (injunctions) of the new Act is taken to include a reference to this Schedule.
8 Provisions of the new Act that apply to this Schedule
(1) A reference to “this Act” in any of the following provisions of the new Act is taken to include a reference to this Schedule:
(a) subsection 91(7) (which relates to directions given by the Reserve Bank to manage or respond to a crisis);
(b) section 179 (use and disclosure of information);
(c) subsections 194(2) and 195(2) (which deal with providing false or misleading information or documents);
(ca) section 195A (interactions with cash‑related contractual chain orders);
(d) section 196 (delegation—ACCC);
(e) section 198 (protection from civil action);
(f) section 200 (compensation for acquisition of property);
(g) section 201 (no giving of preference);
(h) section 204 (revocation or variation of instruments).
(2) Section 195A (interactions with cash‑related contractual chain orders) of the new Act applies as if the list of civil penalty provisions in paragraph (1)(b) of that section included the civil penalty provision in subitem 5(1) of this Schedule.