30 August 2023

SA DPP Culture

The South Australian Office of the Director of Public Prosecutions Workplace Experience Report states 

In December 2022, the Chief Executive (CE) of the Atorney-General’s Department provided a briefing to the Atorney-General regarding an increase in staff turnover within the Office of the Director of Public Prosecutions (ODPP or the Office) since 2019. 

The briefing outlined the CE’s intention to work with the Director of the ODPP (the Director) to seek feedback from those who had left during that period. Like an exit interview, the process would be designed to understand their experiences of the workplace and the factors that influenced their decision to leave. This would allow the Office to identify areas that need addressing through targeted actions to reduce turnover. During initial discussions between the CE and the Director, recruitment was also raised as an issue, with the Director reporting that it was becoming increasingly difficult to atract candidates, with fewer applications received than in previous years, and fewer applications received from senior or experienced legal practitioners. It was agreed there would be benefit in broadening the scope of the work to include recruitment as a second area of focus, and benefit in seeking feedback from the current ODPP workforce at the same time. To provide a greater sense of independence, privacy and confidentiality, and psychological safety for participants in the process, it was agreed that an external consultant would be engaged to undertake the work. It was anticipated that this work would lead to further work, where key findings are explored in more detail. Rosslyn Cox, an independent consultant, was engaged to consult with current and former ODPP staff on the topics of retention and atraction with a focus on understanding the reasons behind an increase in people leaving the ODPP since 2019. A total of 197 current and former employees participated through a survey and individual meetings with the consultant, between 15 March and 2 June 2023. 

The process involved the design and distribution of a non-mandatory survey, sent to all current staff and those who had left the ODPP since 2019 with the option of individual meetings with the consultant. In total, 197 out of a possible 287 individuals (67%) participated in the process, 53 former staff (out of a possible 101, 52%) and 144 current staff (out of a possible 186, 77%). Respondents represented every workgroup (legal, clerks, administrative and Witness Assistance teams), and every classification level within the Office including at the most senior levels (LEC1 to LEC5, ASO3 to SAES2, AHP1 to AHP3). The themes identified through the responses were also consistent across current and former staff, which means that the feedback should be read as representing persistent themes, an accurate reflection of the workplace experience and culture from the perspective of most respondents and not simply the concerns of a particular cohort. 

The purpose of this report is to represent the perceptions and experiences of current and former employees of the ODPP, to beter understand issues around retention and recruitment. It is intended to be an internal document, the first phase of a broader piece of work designed to address the issues raised through the feedback. In some cases, the report provides additional context and background, as shared by staff, to provide context to some of the themes raised through the process, but it was never intended to be presented as a comprehensive organisational review, a balanced report, with a detailed analysis and synthesis of the issues raised. That work will come later. 

The report is intentionally writen in a narratve tone, to represent the voices of staff. It is intentonally writen to reflect the persistent themes that were raised through the survey and the individual meetngs but acknowledges that there are other perspectives. For this reason, litle additional information has been provided to counter or respond to any perceptions unless the context is helpful. As the reader, where your perceptions or experiences differs from those reflected in this report, rather than seeking to dismiss the observation as that of a malcontent, or to correct the perception or challenge the experience, be curious about why so many people share that view. The report refers in the main to legal officers as they represent the largest responding cohort, but the themes presented in the report are based on feedback received from legal officers, law clerks, secretaries, administrative staff and the Witness Assistance Team, and the issues and findings apply to all staff in the ODPP. 

In summary, feedback received through the survey and individual staff meetings, suggest that the current workplace experience for most staff in the ODPP is untenable. Respondents highlighted what many describe as unacceptable, unreasonable and unsustainable levels of pressure and stress working at the ODPP and the potential consequences for work standards, professional integrity, wellbeing and work life balance. 

The main contributor to the pressure and stress was and continues to be the unrelenting workload driven by volume, increasing complexity, often distressing and difficult content, and the sense of responsibility that comes with wanting to do what’s right for victims, witnesses and their families. Importantly, much of the workload pressure appears to be a consequence of factors beyond the  control of the ODPP, who sit within the criminal justice system between SAPOL and the Courts, and who are obliged to prosecute indictable or summary offence against the State, irrespective of current resources. Workload pressure and stress have been compounded recently with the departure of so many experienced senior staff, the additional work that comes with needing to support so many new, less experienced staff, the reality that some staff have work that has previously been managed at a higher classification (e.g. a LEC1 with a legal practice previously managed by a LEC3), and an expectation from the Director that people do more with less in order to meet their obligations as officers of the court. 

Other key factors identified by respondents can be grouped into the following themes, noting that these are themes that were persistently raised by a majority of respondents, but do not necessarily reflect the experiences of every respondent in the process: • Disparity in pay and conditions, particularly when compared with other parts of the public sector. • An apparent lack of recognition by leadership of individual value, contribution, experience and expertise despite significant professional and personal sacrifices. • An apparent lack of organisational support for managing the consequences to wellbeing and work life balance of working under sustained pressure and stress. • An apparent lack of trust and confidence in the Office from leadership demonstrated by a lack of consultation and communicaton, managing by presenteeism, and an associated lack of flexibility in working arrangements. • An apparent lack of on-the-job training and support, as well as professional and career development opportunities to enable staff to achieve the high-quality work standards they hold themselves to. • Practices, policies and procedures that appear to contribute to perceptions of uncertainty, favouritsm, and reinforcing the perception that individuals are seen as disposable resources. • Examples of behaviours that fall short of the Department’s behavioural expectations that don’t seem to be effectively addressed, reinforced by an apparently inconsistent approach to managing performance, and • A Director whose extraordinary intellect, indefatigable work ethic and approach to the law as a vocation, has led to explicit and implied messaging around expectations workload management and wellbeing. 

There were of course examples where respondents identified individuals who had demonstrated strong leadership, recognising, rewarding and nurturing high performance, making themselves  available to provide support and guidance. In fact every member of the executive team, including the Director, was singled out for individual praise through the process, which of course should be acknowledged and recognised. Most respondents, both former and current staff, across all levels and workgroups, resonated with the themes listed above. 

There was also no suggestion that this is a case of people not working hard. In fact respondents were at pains to clarify that any critical feedback needed to be understood in this context: it’s not a matter of people not working hard, it’s a mater of what people are working hard on. For example, you may have an individual in a management or executive role, appointed to that role because they have outstanding legal capabilities but limited skills or interest in managing people, a case of poor job fit. Or you might have an individual in a management or executive role who may have the requisite capabilities, but workload or resources has prevented them from using those skills effectively, a case of poor job design. The most obvious example of this is expectng the Director, appointed because of his exceptional legal expertise and experience, to discharge his powers to prosecute on behalf of the state, while at the same time overseeing the strategic, operational and people management responsibilities of an office of 180 people. What is clear is that the prevailing approach to structure, role design and recruitment has been to value legal capabilities above all others, and to rely on the goodwill of all staff to do whatever it takes to get the job done. This is no longer tenable. 

What is notable about this report, is that it is consistent with the findings and observations of two previous reports prepared for the ODPP in 2016 and 2017: an Independent Review of the ODPP conducted by Partners in Performance and Wellbeing Program Report, prepared by AGD’s Workforce Development Consultant Luke Brady. This suggests that addressing the root causes of the issues requires an understanding of historical and current issues, macro (the legal profession and the labour market generally) and micro (the Office and the leadership team) influences on culture, and the distinction between how systemic issues versus actions and behaviours of individuals have contributed to challenges that respondents have raised. 

In formulating the responses to this report, consideration should be given to both capability and capacity for change within the ODPP. Capability is understood to be the knowledge, skills and expertise to undertake the work. Capacity is understood to be the amount of work that can be produced within a timeframe based on capabilities and resources. Capacity was cited through this process as one of the possible reasons for a lack of action on many of the issues that have been raised in previous reports. That the realities of the relentless workload mean that proactive change  management has not been possible. While it is true that creating capacity is essential to the successful implementation of change (Coombe 2004) change also builds capacity (Heward 2007), the literature points to three critical factors in understanding capacity for change: capabilities and resources (including time), systems and procedures and organisational culture (Judge 2011). It is clear then that building and sustaining capacity requires the necessary capability from the top down (Grisso et al., 1995; Rist, 1995). 

What is needed is a rethink of the way the ODPP is structured and operates, with the intention of leveraging the skills of highly competent and experienced legal officers to focus on preparing for and prosecuting the state’s criminal cases, whilst also building new and separate capability and capacity in areas of strategic, operational and people management. At the same time, all people managers must be held accountable for the performance and wellbeing of their teams and must be supported to either build capability in those areas or move to roles that don’t require those capabilities. It is difficult to see how the current arrangements could adequately address the issues raised in this report, when they haven’t been able to up to this point. 

In addition the ODPP must engage and work with other areas of the criminal justice system to identify opportunities to manage workload demands and priorities, both into and out of the ODPP. If that cannot be achieved within the constraints of the existing ODPP workforce profile, there seems to be no alternative but to increase the resources in the Office to enable them to meet the increasingly complex and voluminous demands the system places on them. 

If this process is to achieve meaningful change, any recommendations need to take into consideration the reasons why previous reports have not achieved the outcomes they were designed to achieve, focus on those factors that the ODPP has control over, and seek to influence change across the legal profession and within a criminal justice system seemingly ill equipped to support the needs of a modern high performing workplace. This will require an honest conversation about the cultural norms within the legal profession, and the need to adapt to a rapidly changing labour market and far more discerning individuals.

Discourse

In Rowe and Anor v Bishop and Anor (No 4) [2023] SADC 29 - a splash of gibberish admiralty law, a thumbprint with red ink (or was it blood?) and a demand for recusal on the basis of treason - Slattery J states 

 [30] An allegation of treason is an extraordinarily serious matter. It is made without any foundation and, as I have demonstrated, there is no factual basis for making the allegation. The applicants do not display any understanding of the seriousness of the allegations or what is required to be proved in order to make out such allegations. 

[31] The applicants were prepared to make this allegation despite the fact that they have refused to continue to participate in the proceedings after the adverse judgment No 2 delivered by me on 10 May 2022. I consider that the application is absurd, the supporting material is nothing more than a misconceived rambling discourse and it is all intended to vex and harass this court. It is also symptomatic of the applicants being unable to accept a decision made upon a claim brought by them which does not favour them. Rather than accept the decision and proceed accordingly the applicants have adopted an approach of challenging the foundational principles of the independence of the judiciary. This is symptomatic of the failure of the applicants to comprehend what they are alleging and that in a proceeding which they commenced, they are bound by a judgment against them. No appeal has been brought against any of my judgments. It appears that the applicants are content to attack the judiciary and the judicial process because of their unhappiness with the result of the proceedings which they initiated. That is a regrettable development. It appears to be symptomatic of a level of public discourse that relies almost entirely upon a requirement that its adherents are unable to discern between logical reasoning based upon identifiable proven facts and an approach which scorns and derides such a method. It appears that as part of its role, this court must now also deal with this lamentable development

Medical Labs

'Challenges and gaps in regulating medical laboratories in India' by Pallavi Gupta and Sunil Nandraj in Medical Law International comments 

Accurate diagnosis is an essential component of healthcare delivery. However, research on the delivery of diagnostic services is lacking in low- and middle-income countries. This article examines the issues related to the provision of medical laboratory services in India, including licencing, geographic distribution, charging practices, quality, personnel requirements, information sharing, and newer technologies that impact the sector. The challenges and gaps in regulatory mechanisms governing these services are discussed, highlighting the need for improvements. Legislation to regulate medical laboratories in many Indian states is either outdated or non-existent, with some states recently updating or enacting their laws. A registry of medical laboratories in the country will assist in assessing and meeting the shortfall. Universal adoption of external and inter-laboratory quality control mechanisms will help in standardization and ensuring quality. Clarity and consensus on who can operate medical laboratories and the responsibility of different cadres of technical staff are required. The provision for making information on registered laboratories publicly available under the Central and some state legislations can be very useful to the users in choosing laboratories. Mandatory reporting to the government by both public- and private-sector laboratories will help in maintaining data on disease burden and in planning health services. However, the lack of data protection laws in the country creates the potential for violation of the users’ privacy when laboratories store data digitally and report it online on government web portals. Caution is warranted in the use of newer technologies until the regulations governing these matters are strengthened. A combination of voluntary and statutory mechanisms such as accreditation and regulation would be useful instruments for ensuring quality in diagnostic services. Research on the effectiveness of existing provisions at the state level would help in understanding their impact and suggest ways of further improvement.

29 August 2023

Algorithmics

'The Thought Problem and Judicial Review of Administrative Algorithms' by David Tan in Adelaide Law Review (Forthcoming) comments 

The issue of whether algorithms can be characterised as “thinking” or have properties of “thought” has arisen in both judicial decisions like Pintarich and scholarly discussion regarding issues like bias. This paper refers to this issue as the Thought Problem and introduces three principles for how to resolve it: the manifestation, implementation, and equivalent treatment principle. The manifestation principle states that an algorithmic output can be considered a decision where the manifestation of conduct of the agency supervising the algorithm would be understood to the outside world as a product of a thinking person. The implementation principle states that the humans in the executive who implemented the algorithm have responsibility for the algorithm. The equivalent treatment principle proposes to treat algorithms and a humans who reasoned similarly as equivalent before the eyes of administrative law. The paper does not try to conclusively resolve which principle is best but suggests the equivalent treatment principle is the most complete one for dealing with the Thought Problem. 

Gender

'Gender and the Analytical Jurisprudential Mind' (Oxford Legal Studies Research Paper No. 46/2015) by Leslie Green asks 

Why does contemporary jurisprudence have so little to say about law and gender? I think that is because gender is not relevant to theories of the nature of law. Joanne Conaghan disagrees. She says the methods of analytic philosophy screen out gender by abstracting concepts from social contexts, smuggling in hidden values, and ignoring empirical evidence. My own work on the law of marriage is said to exemplify this. But Conaghan is comprehensively mistaken in her diagnosis. She misunderstands analytic jurisprudence, misunderstands the relation between sex and gender, and misunderstands the role of social facts in legal philosophy. Feminist legal theory is made poorer if it accepts the caricature she offers. Legal scholars should be more open to the contributions of analytic philosophy to feminist inquiry.  ... 

In the end, jibes about the ‘analytical jurisprudential mind’, like jibes about ‘the criminal mind’ —or for that matter the ‘female mind’ — express little more than prejudice. As vices go, an intellectual prejudice is a minor thing. Still, it will have victims. Its main casualties will be beginning students, especially young lawyers curious about things like the social construction of gender, the evaluative character of jurisprudence, the subordination and silencing of women, or social inclusion and legal equality. Will they learn that some of the best contemporary thinking on these themes includes work by analytic philosophers, and even analytic legal philosophers? Will they discover that this work is sensitive to context where relevant, that it is alert to the ways values enter analysis, and that it is literate about social facts? Not if they accept Conaghan’s caricature. Students taught what the ‘analytical jurisprudential mind’ must think about some issue may not feel inclined to spend time discovering what any particular writer actually does think. They are as likely to set about building separation walls, to guard against intrusions by gender-excluding abstractions, smuggled-in values, and empirical biases—unlawful migrants to the empire of law and gender, disguised in nit-picking arguments.“

Antitrust

'Rawls and Antitrust’s Justice Function' by Elettra Bietti comments 

Antitrust law is more contested than ever. The recent push by the Biden Administration to re-orient antitrust towards justice and fairness considerations is leading to public backlash, judicial resistance and piecemeal doctrinal developments. The methodological hegemony of welfare maximizing moves in antitrust makes it theoretically fragile and maladaptive to change. To bridge disagreements and overcome polarization, this Article revisits John Rawls’ foundational work on political and economic justice, arguing that it can facilitate consensus and inform the present and future of antitrust law. 

John Rawls’ work on justice can help re-orient antitrust law in four ways. First, it provides a common language of justice that enables various “camps” of thinkers and activists find common ground on the relation between antitrust’s economic mission and its implications for political justice. Second, it helps recalibrate the balance between utilitarian moves that emphasize welfare maximization on the one hand and deontological or structural justice considerations on the other. Third, and related, Rawls guides our thinking on the relationship between justice, efficiency and welfare, showing us that attempts at separating antitrust law’s mission from its impact on liberty, equality and fairness violates basic moral intuitions. Fourth, Rawls’ late work on political economy, particularly notions of property-owning democracy and liberal democratic socialism, can help situate antitrust law within broader policy thinking on economic justice. 

Rawls’ work highlights that antitrust has a justice function, and that such function has two basic dimensions: a structural dimension, to structure and constrain market dynamics so as to enable free and fair exchanges compatible with justice; and a corrective dimension, to rectify the creation of large inequalities or excessive concentrations of power and re-diffuse and decentralize power adaptively. An investigation into the Rawlsian roots of antitrust law suggests three avenues for reform: (1) enhancing publicity and democratizing antitrust law and procedures; (2) promoting commercial reciprocity through structural and corrective mechanisms; and (3) situating antitrust law within a broader constellation of regulatory tools. 

27 August 2023

Payments

The Commonwealth's A Strategic Plan for Australia’s payments system: Building a modern and resilient payments system in June this year offers a 'Vision for the payments system': 

A modern, world class and efficient payments system that is safe, trusted and accessible, and enables greater competition, innovation and productivity across the economy. 

Principles to guide the future direction of the payments system: Trustworthiness, Accessibility, Innovation, and Efficiency

Key priorities and supporting initiatives: 

1) Promoting a safe and resilient system • Reducing the prevalence of scams and fraud • Strengthening defences against cyber attacks • Supervising systematically important payment systems 

2) Updating the payments regulatory framework • Implementing changes to the Payment Systems (Regulation) Act 1998 (PSRA) • Establishing a new payments licensing framework • Promoting competition by facilitating transparent access to payment systems • Enabling greater collaboration between payment system regulators • Reducing small business transaction costs 

3) Modernising payments infrastructure • Phasing out cheques • Upgrading systems • Maintaining access to cash 

4) Uplifting competition, productivity and innovation across the economy • Aligning payments system objectives and the Consumer Data Right (CDR) framework • Supporting the broader use of Digital ID • Uplifting digital and technological skills • Building public trust and confidence and supporting adoption of artificial intelligence (AI) 

5) Australia as a leader in the global payments landscape • Creating a regulatory environment that attracts and enables innovation • Facilitating cross border payments • Exploring the policy rationale for a Central Bank Digital Currency (CBDC) in Australia

The Plan notes 

The Australian payments system is increasingly digitised due to consumer preferences for frictionless transactions and evolving technology. Card based payments make up about 75 per cent of non cash retail payments, with 25 per cent of that volume coming via mobile wallets. ... 

As the Australian payments system continues to evolve and consumers’ needs change, there has been a shift away from traditional payment methods. There has been an almost 90 per cent decline in cheque volumes in the last 10 years, with cheques now comprising only 0.2 per cent of non cash retail payments in Australia. Cash use has also reduced significantly, with the share of retail payments made in cash falling from 27 per cent in 2019 to 17 per cent in 2022. However, cash in circulation is rising, indicating Australians’ demand for cash for the purposes of storing value, potentially for uncertain circumstances, remains high. ... 

The Government intends to enable greater choice for Australians in the way they transact for goods and services. The Government will focus on removing legislative and other barriers that entrench payment by cheques as well as phasing out government cheque usage by the end of 2028, with the eventual wind down of the cheques system in Australia by no later than 2030. This will be subject to further consultation with industry and stakeholders to determine the feasibility of this end date and an appropriate transition plan. 

There has been a rapid decline in the use of cheques in the past 10 years, which now comprise only 0.2 per cent of non cash payments in Australia. This has been driven by growing availability of card and electronic payments and consumer preferences for more efficient and low cost digital payments. This consumer led migration is consistent with the global trend towards digitisation, with some countries successfully managing the complete closure of their cheque systems. 

As cheque use declines, the per transaction cost of supporting the cheque system will continue to increase. Banks and financial institutions are taking steps to withdraw from the cheque system, such as ceasing issuance of cheque books for new customers. At the same time, many merchants are ceasing to accept cheques as a means of payment. 

Although cheques represent a narrow segment of our payments system today, they continue to be issued in relatively large numbers by some corporates and Government entities. They also continue to be used by certain cohorts of the population, particularly older Australians and those living in regional or rural areas or with limited digital proficiency or connectivity. Some types of businesses also rely more heavily on cheques (for example, charities and other not for profit organisations who take a large proportion of donations through cheques from their donors). As an advanced economy with well developed digital insfrastructure, Australia is well placed for an eventual withdrawal from the cheque system. Many stakeholders have indicated a strong desire to end the cheque system, with habit and legislative barriers being the most cited reasons for its continued use. However, with the increased adoption of faster, safer, and more seamless technology, there are now strong and readily accessible payment alternatives to cheques. These alternatives will also help deliver greater financial inclusion outcomes such as more clear and targeted customer communication and real time access to information to assist those cohorts of the community that are more susceptible to vulnerability. Transitioning away from cheques will help achieve greater efficiency, productivity and security in Australia’s payments system. It will remove barriers that entrench specific payment methods and promote payment neutrality, giving Australians greater choice in choosing how they pay. 

However, the Government is committed to ensuring that all Australians are supported in a transition away from cheque use. As banks and financial institutions continue to reduce cheque related services and parts of the economy cease accepting cheques as a way to pay, it is important to ensure that the transition is appropriately managed. The Government has a role to play in managing the transition away from the cheques system, coordinating a whole of economy approach in a manner that provides appropriate support, and minimises adverse impacts to consumers and businesses. 

In the short term, the Government will consult with industry and stakeholders to identify challenges, develop solutions and supports for affected users, and implement the changes required to ultimately close the cheques system. This would involve staged reforms, rather than a single change at the end of the proposed period. To this end, four main workstreams have been identified for ensuring a smooth transition away from the cheques system.

• The Government will work to reduce Commonwealth usage of cheques by working with agencies and departments with high cheque usage to develop a transition plan away from reliance on cheques. This includes identifying products, such as health services or tax payments, that will need viable and alternative forms of payment with the same level of reach and convenience as cheques. 

• The Government will support industry in promoting the use, and removing barriers to adoption of, alternatives to cheque products, especially for institutional and commercial uses of cheques that cannot be serviced through existing digital channels. Industry’s development of education and outreach programs to assist cohorts that are greater users of cheques will also be required. 

• The Government will explore changes to Commonwealth legislation that entrench the use and acceptance of cheques with a view to amending legislation. The Government aims to ensure that legislation mandating cheque use will become payment neutral in the future. As part of this process, the Government will consider the ongoing role of the Cheques Act 1986. 

• The Government will also work with state and territory counterparts to encourage a coordinated approach to transitioning away from the cheques system. This includes encouraging state and territory governments to amend legislation that mandates the usage of cheques in certain industries such as gaming and insurance. ...

Cash is an important payment method for certain groups in Australia and plays a vital role in their inclusion in the wider economy. Cash is still widely accepted as a means of payment by merchants, used as a store of value, and provides resilience to the payments system during outages where digital forms of money cannot be used. 

The use of cash as a method of payment has declined substantially in the last decade and this trend accelerated during the COVID 19 pandemic. According to the Reserve Bank’s Consumer Payments Survey, 13 per cent of payments were made using cash in 2022 whereas, in 2019, this share was 27 per cent. At the same time, financial institutions are reducing the number of branches and ATMs they operate across the country. APRA reports that over the 5 years to June 2022, bank branches have declined by 30 per cent in major cities, and 29 per cent in regional and remote areas. The number of ATMs in Australia have declined by approximately 25 per cent since the peak in 2016. 

The Government understands the important role cash still plays in our payments system and supports Australians having continued access to cash. The Government will work with the relevant agencies across the public sector and with industry to ensure that Australia has a sustainable cash distribution network that maintains adequate access to cash. Currently, Australians have good access to cash services with an estimated 95 per cent of the population living within around 5km of a cash access point as of June 2022. However, there are some communities in Australia that are facing a reduction in cash services more acutely, particularly those in regional and remote areas. These Australians typically have to travel further to access cash and are particularly vulnerable to the removal of cash access points, bank branches and cash distribution facilities. The declining transactional use of cash has led to a per unit increase in costs in distributing cash across the country. Australia’s two largest Cash in Transit (CIT) service providers, Armaguard and Prosegur, have responded to these financial pressures in recent years by downsizing or closing some facilities and reducing the frequency of CIT services. 

More recently Armaguard and Prosegur have applied for ACCC authorisation to merge their cash distribution and management, device monitoring and maintenance and ATM businesses to help create a more efficient and financially sustainable business. Merger authorisation includes both a competition assessment and public benefits assessment. The ACCC is expected to make a decision by 14 June 2023. The applicants have submitted that the merging of the businesses could help operations by achieving synergies. These synergies will better enable continued provision of CIT services across Australia in an environment where both providers reported incurring heavy financial losses due to declining demand. 

Regardless of the decision made by the ACCC on this application, the Government will closely monitor developments regarding access to cash for Australians, in close consultation with relevant regulators. This is to ensure that as cash reliance declines and the the CIT industry undergoes transition, the market can operate both efficiently and fairly, that the potential for disruptions that could impact cash access are identified early and minimised, and that Australians continue to have access to cash. 

The RBA is working to reduce impediments to improved efficiencies in cash distribution operations. This includes introducing transparent and standard contractual arrangements for the distribution of banknotes by the RBA as well as the establishment of a banknote distribution industry forum to facilitate more timely changes to make the distribution of cash more effective, efficient, resilient and sustainable. The Government notes the Senate Standing Committees on Rural and Regional Affairs and Transport Inquiry into Bank Closures in Regional Australia, in particular its investigation of the effect bank closures and the removal of face to face cash services are having on cash access. The Senate inquiry will report by 1 December 2023. 

The Government notes industry’s role in supporting the Bank@Post network which provides access to banking services through Australia Post outlets, including in 1,800 locations in rural and remote areas. The use of this network is supporting communities at a time of transition towards greater use of electronic payments, but may not fully address issues around access to cash for all Australians. 

The Government also notes work being done overseas to maintain access to cash and ensure infrastructure supporting cash access and availability is effective, sustainable and resilient. Initiatives in the UK include widespread adoption of cash at point of sale without a purchase, ensuring cash facilities are available in all communities and that there is broad coverage of free to use ATMs. ...

The Plan articulates the Regulatory Framework

The regulatory framework for Australia’s payments system is determined by the Government, regulators, and key industry bodies. .. 

The Government 

The Government designs and, through the Parliament, implements laws that determine the regulatory architecture for the payments system. Besides its rule making function, the Government is uniquely positioned to provide high level strategic direction for the payments system due to its role in setting system wide policy. 

The Government has a role in setting the overarching direction for the payments system by influencing the focus of agencies and regulators. A clear overarching direction from Government is critical for the payments system as the range of activities undertaken by businesses in the payments system cuts across the remit of several regulators. This feature of the payments system necessitates policy and regulatory responses to be coordinated and aligned. 

Regulators 

The Reserve Bank of Australia (RBA) and the Payments System Board (PSB) 

The RBA is the primary payments system regulator, covering the wholesale, retail and commercial payments systems. The RBA’s payments system policy is determined by the PSB, which sits within the RBA. 

The RBA’s regulatory powers are set out under the Payment Systems (Regulation) Act 1998 (PSRA), Payment Systems and Netting Act 1998, and Cheques Act 1986. In determining the RBA’s payments system policy, the PSB must exercise its responsibility in a way that best contributes to: • controlling risk in the financial system; • promoting the efficiency of the payments system; and • promoting competition in the market for payment services, consistent with the overall stability of the financial system. 

The responsibilities of the PSB are broad, covering both the high value wholesale payments system and retail and commercial systems, which have high transaction volumes but are of lower value. 

The Payment Systems (Regulation) Act 1998 (PSRA) is the primary regulatory framework governing payment systems. It authorises the RBA to impose regulatory requirements on participants in designated payment systems where it is in the public interest to do so. Intervention and regulatory action is generally preceded by industry consultations to explore non regulatory solutions first. Regulation is developed by the RBA closely with industry and relevant parties. 

Australian Prudential Regulation Authority (APRA) 

APRA is responsible for prudential regulation, including the licensing of Authorised Deposit taking Institutions (ADIs). APRA, alongside the RBA, also has the power to authorise the provision of Purchased Payment Facilities (PPFs), which are facilities that store funds for the purpose of making payments. 

Specifically, APRA supervises providers of PPFs that have payment obligations of over $10 million (with deposit like features), which are redeemable in the Australian currency and are ‘widely available’ (more than 50 users). The provision of PPFs is treated as ‘banking business’ and providers are regulated as a special class of ADI. 

Australian Securities and Investments Commission (ASIC) 

ASIC’s role in regulating the payments system includes licensing financial service providers and overseeing the ePayments Code to ensure consumer protection for electronic payments. ASIC licenses entities that deal in a financial product. Most relevantly for payment service providers, ‘non cash payment’ facilities are a defined type of financial product under the Corporations Act 2001. 

A person makes a non cash payment if they make payments, or cause payments to be made, other than through the physical delivery of Australian or foreign currency in the form of notes or coins. ASIC updates the contents of the ePayments Code and undertakes targeted compliance. The currently voluntary Code provides important consumer protections in relation to electronic payments, including ATM, eftpos, credit and debit card transactions, online payments, and internet and mobile banking. The Code provides key consumer safeguards and sets out the circumstances in which a financial institution will be liable to reimburse customers who lose money to an ‘unauthorised transaction’. 

Australian Transaction Reports and Analysis Centre (AUSTRAC) 

AUSTRAC has a role as a payments regulator under Australia’s Anti Money Laundering and Counter Terrorism Financing (AML/CTF) Act 2006. AUSTRAC regulates ‘designated financial services’ under the AML/CTF Act and imposes reporting requirements on entities in the financial system that provide those services. Designated financial services required to register with AUSTRAC include remittance services, digital currency token services, and the issuance of stored value cards that have stored value above a certain threshold. 

Australian Competition and Consumer Commission (ACCC) 

The ACCC has a wide remit on competition, consumer, and merger matters – as dictated by the Competition and Consumer Act 2010. In the payments system, the ACCC generally uses its powers to investigate potentially anti competitive behaviour, while also playing a role in assessing and authorising mergers (as seen with the eftpos, BPAY and NPPA merger in 2021). 

The ACCC is also progressing the Digital Platform Services Inquiry report which is being delivered in bi annual interim reports until 2025. The 5th Interim Report released in November 2022 made recommendations to address consumer and competition issues, including recommending a new competition framework for designated digital platforms to be subject to service specific codes. Treasury consulted on these recommendations and the government is considering their response to the report. The next interim report is due to be submitted to the Treasurer in September 2023 and will consider potential competition and consumer issues and benefits from the expanding ecosystem of digital platform providers in Australia.