The Customer Owned Banking Association (COBA) has formally supported the passage of the Cash Distribution Framework Bill 2026 during a hearing before the Economics Legislation Committee inquiry.
Appearing on behalf of Australia’s 47 customer-owned banks, COBA Chief Impact Officer Stephanie Elliott outlined the sector’s position during the hearing. Joining the hearing virtually from the World Credit Union Conference in Sydney, which COBA is co-hosting with the World Council of Credit Unions, Ms Elliott said the legislation is needed to manage the changing economics of cash circulation.
“The importance of cash is closely tied to our sector’s long-standing commitment to financial inclusion,” Ms Elliott said.
“For reasons, including resilience, regional access and financial inclusion, COBA strongly supports the Cash Distribution Framework legislation and urges its timely passage,” she added.
In her opening statement, Ms Elliott contextualised the legislation against the decline in everyday cash transactions, emphasising that cash remains a critical economic cornerstone, particularly outside major metropolitan centres.
Nearly three-quarters of our member banks are headquartered outside Sydney and Melbourne. RBA data confirms that cash use is particularly high in these areas, where communities frequently navigate unreliable digital infrastructure and power outages.
Addressing the concentrated cash-in-transit market, COBA stated its support for government oversight to ensure equitable service arrangements.
While supporting the legislation, COBA cautioned that the sector has yet to review the Independent Pricing Mechanism, which Armaguard has not yet lodged with the ACCC.
“Ultimately, it is essential that the final pricing framework delivers fair and sustainable outcomes for all participants in the cash system, including customer-owned banks, which do not have the negotiating leverage of larger institutions,” Ms Elliott said.
The association also advocated for accessible dispute resolution mechanisms for customer-owned banks. COBA is seeking confirmation that multiple affected entities will be permitted to pursue collective arbitration when facing common conduct from a designated provider. This provision would allow customer-owned banks to enforce their rights without the prohibitive costs associated with individual arbitration.
The 47 mutual banks and credit union represented by COBA serve a diverse range of communities and tailor their services to meet a wide spectrum of customer needs. Because they are owned by their customers, customer-owned banks prioritise the social and economic wellbeing of their communities, delivering outcomes that benefit customers and extend their impact beyond traditional financial services.
ENDS
For further information or to arrange interviews, please contact Mira Palomaki on 0459 954 035 media@coba.asn.au
The Customer Owned Banking Association is the industry body for mutual banks, credit unions and building societies. For almost 180 years our sector has put customers first, returning profits to more than 5 million Australians who put their trust in customer-owned banks.