In an age where digital transactions are becoming the norm, it’s easy to assume that cash is on its way out. But despite the rapid advancements in technology and the push towards a cashless society, there’s compelling evidence to suggest that cash is still very much alive and kicking in Australia. Let’s delve into the current state of cash, the future of cheques, and the government’s stance on card surcharges to understand why physical currency remains relevant.
The past year has seen significant changes in the way Australians handle money. Banks have been closing branches and ATMs, with 926 ATMs and 230 local branches shutting down in the last financial year alone. Macquarie Bank even took the bold step of becoming the first major Australian bank to go cashless at its branches, although it still allows ATM withdrawals.
Businesses, too, are increasingly adopting cashless models. Gloria Jeans, for example, has joined fast-food giants like McDonald’s and KFC in operating some cash-free stores. This trend has left many Australians wondering about the future of cash.
The government’s cash mandate
Amidst these changes, the Albanese government announced a significant cash mandate. This mandate will require businesses to accept cash as payment for essential items such as groceries and fuel. While some smaller businesses may be exempt, the mandate sends a clear message: cash is still a vital part of the Australian economy.
Treasurer Jim Chalmers emphasised the ongoing role of cash, stating that despite the rise of digital payment methods, there’s still a place for cash in society. The mandate is set for consultation and won’t be implemented until 2026, but it’s a clear sign that the government recognises the importance of maintaining cash as a payment option.
The surprising statistics
The Reserve Bank of Australia’s (RBA) 2023/2024 annual report revealed that while there’s been a reduction in the issuance of banknotes, the total value of banknotes in circulation remains high at $100.8 billion. Interestingly, the number of $100 bills increased by 1 per cent. This suggests that while Australians may not be using cash as frequently for transactions, they are still holding onto it.
ATM withdrawals also tell a story of cash’s resilience. Despite a decrease in the number of ATMs, Australians withdrew more money from them this past year than the year before. Cash advocate Jason Bryce from Cash Welcome argues that this is proof of cash’s enduring presence in the wallets of Australians.
The decline of cheques
While cash maintains its stronghold, the same cannot be said for cheques. The government has extended the timeline for phasing out cheques, with a new target to stop issuing them by mid-2028 and to cease acceptance by September 30, 2029. Cheque usage has plummeted by 90 per cent over the last decade, now representing a mere 0.2 per cent of non-cash retail payments. Banks are already taking steps to phase them out, with ANZ ceasing the issuance of chequebooks.
A crackdown on card surcharges
The government is also addressing the issue of card surcharges, which have been a point of contention for consumers. Australians pay an estimated $960 million a year in card surcharges, a significant expense during a cost-of-living crisis. In response, Prime Minister Anthony Albanese announced plans to scrap surcharges on debit card payments, with the ban potentially coming into effect in January 2026. The ACCC will receive funding to tackle excessive surcharges and reduce payment fees, although credit card surcharges will not be included in this initiative.
The verdict on cash
So, is cash dead? Far from it. While we’re certainly moving towards a more digital economy, cash remains an essential part of our financial system. It offers anonymity, accessibility, and a backup payment method in case of digital failures. For many Australians, particularly those in older demographics or rural areas, cash is a familiar and trusted form of currency.
We’d love to hear from you, our readers. What are your thoughts on the future of cash? Do you still find yourself using cash regularly, or have you fully embraced digital payments? Share your experiences and opinions in the comments below!
Also read: Older Australians ‘left behind’ by increasingly cashless society
This idea of a cashless society is wrong and scary. All my transactions are tracked. I prefer cash. I live rural remote. The small town that I lived in for over 20 years lost both banks and the ATM. It’s happening to so many small towns meaning any business that has cash to deposit has to travel sometimes over an hour to another town to deposit this money. There are so many people affected in so many different ways. My concern is I lose my ability to make a choice.
Recently I was in a Reject Shop and as I was paying for my 5 was told that we won’t be able to use cash in any of their stores by 2026. I was shocked but thought I hope it doesn’t come to that. I’d have to find another business to shop at. In small rural/remote towns that’s hard. Then the shop had to post on social media that they could only accept cash as there was a problem!
I’m very careful with my money and budget for everything. I don’t live beyond my means. I never received child support and raised all my children alone and we prefer cash when possible.
I believe a cashless society is WRONG!!
Why can’t there be a choice? I can send for products using a card. But cash is my go to for everything else, it is safer, cheaper and keeps the businesses thriving. What about the kids as well as the elderly?
CASH IS KING!!!!
I only use cash as my main method of payment, no matter what.
My bills are paid by internet banking, then I withdraw my food & spending funds. NEVER will I use ‘fantastic plastic’ when I can use cash.
I was in the Blue Mountains at the beginning of December, and found out the the 2 places I was visiting had a ‘card only’ policy. I can understand the Zig Zag railway having this policy as it’s run by volunteers, but Scenic World in Katoomba, that’s a different story. Just fortunate that I had booked the visits well before I arrived, and I didn’t have to spend anything for a snack or meal there – their loss.
Sorry, their mistake.