The NSL Cup was sponsored by Johnnie Walker and known as the Johnnie Walker Cup for sponsorship purposes.
South Melbourne were the defending champions, having defeated Newcastle Breakers to win their second title in the previous season's final, but they were eliminated in the semi-finals by eventual winners Collingwood Warriors.
Collingwood Warriors defeated Marconi Fairfield 1–0 in the final to win their first NSL Cup title.
[1] The NSL Cup was a knockout competition with 16 teams taking part all trying to reach the Final in October 1996.
[2] The competition consisted of 13 out of 14 teams from the National Soccer League (with the exclusion of Perth Glory) plus Brisbane Lions and two state representative sides of Northern NSW Soccer Federation and South Australian Soccer Federation.