The federal government says it will mandate cash acceptance by a range of businesses.
“People are increasingly using digital payment methods, but there is an ongoing place for cash in our society under the Albanese government,” treasurer Jim Chalmers and assistant treasurer Stephen Jones said in a statement.
Groceries, medicine and fuel must be able to be paid for using cash under new laws to be worked out over 2025. Treasury will undertake a consultation to determine the range of businesses affected, and exemptions.
This means most businesses will be able to mandate digital payments if they prefer. It may also mean many small food vendors, such as cafes, that are ‘card only’ will have to change their ways.
"There is an ongoing place for cash in our society " Chalmers said.
Warwick Ponder from the Independent Payments Forum said “we support it.”
“But we can’t lose sight the main issue facing Australians is reducing the costs of debit and credit transactions.
“Making a cash mandate a good thing for the small percentage of people that use cash.”
The ATM industry funded lobby group Cash Welcome naturally was ecstatic at this development.
"This is exactly what we have been asking for," said Jason Bryce, spokesperson for the Cash Welcome campaign.
"The cashless society is dead in Australia.
"There will be more cash in circulation in the future, not less, because of mandated acceptance, and the huge market signal this sends - Australia will never go cashless."
It also means the costs to bank and retailers of supplying cash and accepting cash will come into greater focus.
In its FY2024 full year results Commonwealth Bank disclosed the total cost of providing cash services over the year to June 2024 at $410 million.
In its results Westpac put cash handling costs at $330 million.
The government yesterday also confirmed the timetable for the complete phase out of cheques by 2030.
It calls for ceasing issuance of cheques by 30 June 2028 and ceasing acceptance of cheques on 30 September 2029.
AusPayNet will lead an industry-wide transition coordination program, working with financial institutions in the lead-up to the closure of the cheque system.
The program will be subject to an application for ACCC authorisation.