Australia to safeguard cash payments as digital shift grows
AUSTRALIA will mandate businesses selling essential items such as groceries and fuel to accept cash payments, joining countries from Spain to Denmark amid the growth in more preferable digital payment methods.
Treasurer Jim Chalmers said while around 1.5 million Australians still use cash for more than 80 per cent of their in-person payments, the number of businesses accepting them has shrunk. The changes were designed to ensure “people aren’t left behind”, he said while outlining the government’s plan on Monday (Nov 18).
“We’re making sure that people can pay cash for essentials if they want to, and if they need to,” Chalmers said at a press conference in Canberra. “Cash can be a really important lifeline.”
Like many other nations, Australia has been moving away from cash payments in favour of digital transactions, with Reserve Bank of Australia (RBA) data showing that the use of banknotes for transactions is down.
Meanwhile, the value of mobile wallet transactions in Australia hit A$93 billion (S$80.5 billion) in 2022, up from A$746 million in 2018, a more than 12,000 per cent surge, according to an analysis by the RBA.
There is currently no legal requirement for businesses in Australia to accept cash.
The final details for the plan will be announced in 2025, and the new mandate will begin from January 2026. The government has not laid out what constitutes a business which provides an essential service, or what would qualify a small business for an exemption.
Chalmers said the government would still move ahead with its plan to phase out cheques, which will stop being issued by Jun 30, 2028. They will no longer be accepted from Sep 30, 2029. BLOOMBERG
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