A long-awaited plan by the Albanese government to ‘protect Australians right to pay with cash’ has been slammed as a sham, with consumer advocates warning it could actually accelerate the country’s shift toward a cashless society.
The draft legislation, quietly released at 4pm last Friday, appears to require only large supermarkets and major petrol chains to accept cash, and even then only for purchases under $500.
Smaller businesses, government agencies, and most retailers would be completely exempt from the so-called ‘cash mandate’, meaning they can continue refusing cash payments without penalty.
‘This is a mandate so full of loopholes it’s ridiculous,’ said Jason Bryce, leader of the Cash Welcome campaign told 2GB’s Ben Fordham.
‘It doesn’t apply to small businesses, or even most big ones – just large supermarkets and petrol stations. Everyone else is exempt.’
Under the draft regulations, supermarkets would only be required to maintain a single cash terminal and could potentially claim small business status to avoid the requirement altogether.
The rules allow businesses to claim exemptions if handling cash is deemed ‘too costly or too difficult’, effectively giving retailers a legal excuse to reject it.
‘Any retailers, including supermarkets and servos, can refuse cash by claiming it’s too difficult to accept cash,’ Mr Bryce said.
The draft regulations draft regulations will require fuel and grocery retailers to accept cash for in-person transactions up to $500
‘If retailers can claim it’s too hard to accept cash, banks will make sure it’s hard and cash will disappear.’
The reforms were meant to honour earlier promises by Treasurer Jim Chalmers that consumers would always have the option to pay with cash.
‘The current proposal leaves out medicines, housing, utility bills and many other essential items we need to live,’ Mr Bryce said.
Financial Services Minister Daniel Mulino said the draft regulations will require fuel and grocery retailers to accept cash for in-person transactions up to $500, with exemptions for small businesses earning under $10million annually or franchises where the total turnover is under $10million.
‘We recognise that Australians are increasingly using digital payment methods, but there will be an ongoing place for cash in our society,’ he said.
‘This is a balanced, practical, and sensible step to support cash users and give consideration to businesses.’
Mr Mulino said people already have the option to pay their bills, including utilities, phone bills and council rates, in cash at their local Australia Post outlet.
Nearly 5,000 ATMs have disappeared across Australia in just five years as the nation’s shift towards digital banking accelerates.
Meanwhile, the number of bank branches nationwide fell by 155 over the past financial year, and by 1,564 over five years.
Pro-cash campaigner Jason Bryce (pictured) says the draft regulations have been watered down
As access to cash becomes harder for consumers, the infrastructure supporting it is also under pressure.
Armaguard, Australia’s dominant cash-in-transit provider, is facing financial difficulties despite its near-monopoly on banknote delivery.
The company’s struggles have escalated into industrial action, with workers in Victoria and Tasmania flagging major disruptions to cash deliveries.
TWU director of organising Sam Lynch said they were fighting back against the big banks’ efforts to create a cashless society.
‘Every dollar that reaches a shop counter or cash machine is because these workers get it there. When they stop, cash stops,’ he said.
‘It’s time that cash handling companies Armaguard and Prosegur recognise the value of cash-in-transit workers and the risks they deal with every day on the job.’
The Council of Financial Regulators and the ACCC released a consultation paper in July with a series of proposals on regulating cash distribution.
The public can make submissions on the draft regulations until October 31.
The regulations will be reviewed after three years.