The Federal Government is moving to safeguard Australians’ ability to pay with cash for essential items, ensuring millions who rely on banknotes are not left behind as the economy becomes increasingly digitised.
Under a proposed mandate set to take effect in 2026, businesses such as supermarkets, pharmacies, and petrol stations that sell essential items like groceries and fuel will have to accept cash payments.
Currently, around 1.5 million Australians use cash for more than 80 per cent of in-person transactions.
Treasurer Jim Chalmers announced the proposal, emphasising that keeping cash in circulation and ensuring it remains a viable payment option will provide Australians with “security and peace of mind.”
“We’re making cash an ongoing feature of our economy even as we modernise the payment system,” Chalmers told ABC TV.
“That’s because we understand that for a lot of people, cash is a lifeline, it’s a backup, it gives people security and peace of mind.”
Treasury will soon begin consultations in order to determine which business supplying essential goods will be covered by the mandate, the needs of those who depend on cash, as well as the impact on small businesses.
Patricia Sparrow, Chief Executive Officer of COTA Australia, welcomed the proposal, emphasising the importance of strong measures to protect the use of cash. She noted that this is particularly crucial for older Australians, with one in two Australians over 65 years and about 35 per cent of 50-65 year olds report using cash on a regular basis.
“For many older Australians, cash is a cornerstone of financial independence, not just a payment tool,” Sparrow said.
“There is a myriad of very valid reasons why people need to and prefer to pay with cash, including privacy and security concerns.
“As it has become harder and harder to pay with cash over the years, we’ve seen too many people left with no option to pay for goods that doesn’t see them hit them with additional charges.
“Cash is legal tender and the changes Government are proposing to introduce will ensure that people are able to continue to be able to use it.”
-with AAP.