Australia is on an unstoppable path towards becoming a virtually cashless nation by the end of the decade, despite new government legislation designed to protect the use of physical currency.
New Rules for Retailers, But Limited Scope
Treasurer Jim Chalmers has introduced a mandate requiring fuel stations and supermarkets to accept cash for in-person purchases under $500. The rule, active from January 1 and applicable between 7am and 9pm, aims to safeguard access for those reliant on notes and coins. However, small businesses with an annual turnover below $10 million are exempt from this requirement.
This intervention comes as data reveals 1.5 million Australians still depend on cash for more than 80% of their face-to-face transactions. With no universal law compelling businesses to take cash, many are refusing it entirely, raising alarms about social and economic exclusion.
Vulnerable Groups Fear Being Left Behind
Consumer and age advocacy groups have welcomed the mandate but warn it is too narrow. Patricia Sparrow, Chief of the Council on the Ageing Australia, stressed that for many older citizens, cash is not a choice but a necessity. "Nearly half of Australians over 65 still use cash regularly," she said, adding that refusals create "unnecessary barriers for people simply trying to pay for essentials."
Chris Grice, CEO of National Seniors Australia, echoed this, calling the move a "small win" but expressing disappointment at its limited application. "We believe there is still some work to do before it upholds the expectations of all consumers who rely on this valid form of currency," he told The Golden Times.
The Irresistible Shift to Digital
Despite these protections, finance experts believe the tide cannot be turned. Dr Angel Zhong, a finance expert from RMIT University, predicts Australia will be 'functionally cashless' by 2030. This means that while cash will technically exist, over 90% of everyday transactions will be digital.
"The trend toward digital payments is strong, driven by technology adoption, merchant preferences, and consumer convenience," Dr Zhong stated. She highlighted the dominance of cards, mobile wallets, and online transfers, pointing to benefits like efficiency and security, but also warned of risks including the exclusion of vulnerable groups and privacy concerns.
The data supports her forecast. The Reserve Bank of Australia reports cash use has plummeted from 70% of payments in 2007 to just 13% in 2022. The physical infrastructure is vanishing, with nearly 5,000 ATMs removed in five years and bank branch numbers falling by over 1,500. Australian Prudential Regulation Authority figures show only 3,205 bank branches remain nationwide.
Public backlash has grown, exemplified by the 'Cash is King' protests in April last year, where thousands queued at banks to withdraw money. Pro-cash campaigners have secured some concessions, including a government deal with the Big Four banks to keep regional branches open until at least 2027.
Dr Zhong summarised the complex trade-off: "The positives include efficiency, reduced costs for businesses, better security, and improved financial tracking. However, negatives include exclusion risks for vulnerable groups, privacy concerns, and dependence on technology." As the 2030 estimate looms, the debate over inclusion in a digital economy is set to intensify.
