Australians Urged to Withdraw Cash on April 28 to Support National Circulation
Australians have been called upon to visit their nearest ATM and withdraw money on April 28, in a fresh initiative aimed at keeping cash circulating across the country. This national day of action is designed to show that cash still enjoys strong community support, especially among older Australians and those in regional areas who have been heavily impacted by recent bank branch closures.
Campaign to Highlight Importance of Cash Access
National Seniors Association CEO Chris Grice emphasised that the event will underscore how crucial easy access to cash remains for vulnerable groups. 'The RBA survey showed cash has the highest share of payments among people aged over 65, on lower incomes, and in regional areas,' Mr Grice stated. 'Our mantra has been to "use it or lose it."' He added that cash users should feel validated by evidence proving cash maintains a solid place in the economy.
Bank Closures and Regional Impact
This campaign comes as banks continue to shutter branches throughout regional communities, leaving many residents, including seniors, without access to face-to-face banking and cash transactions. A federal report in 2024 into the impact of regional bank closures found that private banks had failed regional Australians and had 'little incentive' to keep branches open. The report recommended the federal government guarantee 'reasonable access to cash and financial services for all Australians.'
Reserve Bank Data on Cash Usage
Data released by the Reserve Bank of Australia reveals that almost half of Australians still use cash at least once a week. The data indicates:
- Around 15 per cent of all payments use cash.
- Older Australians and lower-income households are more likely to use cash.
- Most Australians keep about $65 in cash on hand for emergencies.
Notably, this marks the first time since 2007 that the rate of cash use has increased, suggesting a resurgence in its popularity.
Cash in Leisure and Economic Context
The RBA noted that 'Australians have consistently used cash more frequently to pay for leisure - such as going to the cinema or local community events - than for most other types of spending, even as overall cash use has declined in the past 20 years.' The survey, involving 1,200 people recording transaction details over a week, found the leisure sector accounted for about 34 per cent of cash payments. In contrast, transport made up about 15 per cent, reflecting increased use of card taps for public transport, rideshares, or taxis.
Broader Economic Significance
The RBA highlighted that 'Cash supports economic inclusion, serves as a fallback if electronic payments are unavailable, and is an important store of value, particularly during periods of economic uncertainty.' This underscores the multifaceted role cash plays beyond mere transactions, acting as a safety net in times of crisis.
As Australians prepare for April 28, this initiative aims to reinforce the enduring relevance of cash in an increasingly digital economy, ensuring it remains accessible for those who depend on it most.
