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New Cash Payment Mandate in Australia: A Step Towards Inclusivity?
The recently introduced mandate is aiming to help people use cash for their essentials. (Source: Getty/Yahoo Finance)
Australia has taken a significant step towards supporting cash transactions with a new mandate that requires supermarkets and fuel stations to accept cash payments. This initiative, which commenced on January 1, 2023, marks a pivotal moment for cash advocates who are now urging the government to expand this rule to include larger retailers.
Mandate Details
The new regulations dictate that service stations and supermarkets must allow cash payments for transactions up to $500 during peak hours (7 am to 9 pm). While this change is a win for those who rely on cash transactions, advocates are keen for this mandate to encompass major retail giants such as McDonald’s, Bunnings, and Kmart.
Jason Bryce, the founder of Cash Welcome, has been a longstanding proponent for maintaining cash circulation. He recently expressed his hope to extend the mandate’s reach beyond current provisions in a newsletter. "Big business, utilities, and government agencies have escaped from this proposed cash mandate scot-free with no obligation to accept cash and support the cash system," he stated. Bryce believes that prominent brands such as KFC, Big W, and Telstra should also be included.
Community Advocacy
In addition to pushing for broader application of the mandate, Bryce has raised concerns regarding diminishing banking and cash services in small regional towns. He has initiated a petition that now boasts over 219,000 signatures, advocating for sustained access to cash facilities to cater to underserved regions.
While the current mandate exempts small businesses with an annual turnover under $10 million from the cash rule, it captures those affiliated with larger brands. Bryce has voiced a desire for an expansion that would benefit small business owners who wish to continue accepting cash payments. He emphasises, “Ideally we want all retailers to be accepting cash.” He is adamant that the financial burden of distributing cash should not fall solely on consumers, small businesses, and financial institutions, urging larger merchants to contribute as well.
Need for Further Action
Despite the existing measures, there are calls for the mandate to be strengthened to enhance cash availability and accessibility. Chris Grice, the CEO of National Seniors Australia, echoed this sentiment, articulating the importance of ensuring cash acceptance extends to a greater number of businesses and governmental bodies. He affirmed the necessity for a robust cash system, especially for seniors and those who lack digital payment means.
Grice pointed out that there is currently no obligation for retailers to accept cash and emphasised the need for the government to enact a more comprehensive cash mandate.
Future Assessment
The new cash mandate will undergo a review after three years to assess its effectiveness. Prior to its enactment, Treasurer Jim Chalmers articulated the importance of this mandate in ensuring that Australians can utilise cash for essential purchases, saying, "This will help to ensure Australians can continue to pay with cash for essentials if they want to… it will ensure Australians who depend on cash for fuel and groceries aren’t left behind."
As the conversation around cash payments continues, further developments in this area will play a crucial role in shaping Australia’s payment landscape and ensuring inclusivity for all Australians, especially those who prefer traditional cash transactions.
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