Separate
The sentence uses the word distinctive in the context "three distinct ways". Then the excerpt lists the three ways the 10K is special. Seeing that each of those ways are separate and different it is clear that "distinct" means "separate" in this context.
It is a system of voting that allows a citizen to individually number and rank all candidates for both houses of parliament according to their preferences. Which means a citizen's vote can still be counted, even if their first choice of candidate is eliminated due to a lack of votes.