As Australia continues its shift towards digital payments, Federal Member for Riverina Michael McCormack has told parliament that reliable access to cash and banking services remains essential for regional communities such as Grenfell.

Speaking during debate on the Cash Distribution Framework Bill 2026, Mr McCormack said cash still plays an important role in country towns, particularly when electronic payment systems fail or during emergencies that disrupt power and telecommunications networks.

"It's certainly important to always have a bit of cash on you because you never know when you're going to get caught short," Mr McCormack said.

He argued that while tap-and-go cards, online banking and mobile payments have become the norm for many Australians, country residents continue to rely on cash for everyday transactions and as a backup when technology fails.

Mr McCormack also highlighted the ongoing challenge of bank branch closures across regional Australia, saying local businesses, farmers and older residents can be left at a significant disadvantage when face-to-face banking services disappear.

He pointed to concerns raised during a 2023 Senate inquiry into regional bank closures, where evidence was heard about the impact closures can have on communities, businesses and elderly residents who may be less comfortable with digital banking options.

For towns such as Grenfell, access to nearby banking services remains an important issue, particularly for businesses that still need to deposit takings, obtain change or access cash for customers and day-to-day operations.

"Without bank branches, businesses, farms and particularly the elderly suffer immense disadvantage when compared to their city counterparts," Mr McCormack said.

The Federal Government's Cash Distribution Framework Bill 2026 aims to establish a new regulatory system to protect access to cash withdrawal and deposit services through bank branches, ATMs and other parts of the cash network.

The legislation recognises that while cash use is declining nationally, millions of Australians still depend on physical currency.

It also acknowledges that maintaining cash services across the country is becoming more difficult and expensive as digital payments become more common.

Under the proposed framework, the Reserve Bank of Australia and the Australian Competition and Consumer Commission would oversee Australia's cash distribution system.

The regulators would have powers to monitor key providers, set standards and help ensure people and businesses can continue accessing cash.

Mr McCormack also expressed concern about the cash-in-transit sector following the merger of Armaguard and Prosegur in 2023, arguing that a lack of competition could affect the long-term reliability of cash services, particularly in regional and remote areas where transporting cash can be more costly.

He welcomed the bill's recognition of cash distribution as critical national infrastructure and said maintaining a resilient cash network was important for regional Australia.

The Coalition has indicated it will not oppose the legislation, although it has backed amendments calling for stronger protections for cash services and greater attention to the issue of regional bank branch closures.

Mr McCormack said ensuring continued access to cash was about more than convenience, particularly for communities outside the major cities.

"Regional people are the ones who keep the lights on," he said, describing country communities as "the very backbone of Australia."

For many residents and businesses in Grenfell and across the Riverina, he argues that cash remains an important part of everyday life and a service worth protecting for the future.