Why cash is here to stay: Government enforce essential businesses to accept cash
As Australia moves towards an increasingly cashless society, a proposed government mandate to ensure essential businesses accept cash has brought relief to many, particularly older Australians who rely heavily on cash for daily transactions. This policy comes at a time when businesses adopting card-only policies risk excluding some of their most vulnerable customers.
Government mandates to keep cash
The Australian government has announced its intention to legislate that essential services—including supermarkets, pharmacies, and utility providers—must accept cash payments. This decision aims to provide a safety net for those who rely on cash as their primary means of transaction.
National Seniors Australia, a leading advocacy group for older Australians, has welcomed the move. In a recent media release, the organisation stated, “Access to cash is critical for many older Australians, particularly those living in regional areas where digital infrastructure can be unreliable. This legislation ensures no one is left behind in the digital age.” The organisation emphasised that cash payments remain a key way for older Australians to maintain financial independence and control over their spendingWhy Many Over 60s Prefer Cash
While digital payment methods are growing in popularity, cash remains indispensable for many Australians over 60.
- Familiarity: For those raised in a pre-digital era, cash feels more secure and straightforward.
- Privacy: Unlike card or mobile payments, cash transactions don’t leave a digital trail, offering peace of mind to those concerned about their financial privacy.
- Budgeting: Cash allows users to stick to a set spending amount, avoiding the temptation of overspending with cards.
- Reliability: In regional and rural areas, where internet connectivity can be patchy, cash is often the only reliable option.
- Social Norms: Some still find digital systems intimidating or prefer avoiding bank fees associated with card transactions.
Case study: Jean’s cash-first lifestyle
Jean, a 72-year-old retiree from Victoria, shared her experience. “I’ve always used cash for budgeting. It helps me manage my weekly groceries and expenses,” she said. However, a café’s refusal to accept cash left her feeling excluded. The government’s proposed mandate reassures her that her preferred payment method will remain valid.
The decline of cash usage and why it matters
Despite its importance, cash usage has declined in Australia, with many businesses transitioning to card-only systems. According to the Reserve Bank of Australia, cash transactions accounted for just 13% of payments in 2023, down from 37% in 2016. This trend has sparked fears of exclusion for older Australians who depend on cash for various reasons
For over 60s who want to continue using cash but also adapt to digital changes, here are some practical suggestions:
- Carry Cash: Always have some on hand for emergencies or small businesses that may only accept cash.
- Learn Digital Payments: Consider learning to use debit cards or mobile wallets for situations where cash isn’t accepted.
- Ask First: Confirm a store’s payment options before shopping.
- Stay Informed: Keep updated on businesses in your area that support cash transactions.
A Balancing Act for the Future
The proposed mandate to ensure cash is accepted reflects a broader effort to balance progress with inclusivity. While the shift towards digital systems offers undeniable convenience, the importance of preserving access to cash cannot be overstated for Australia’s older population.
As National Seniors Australia noted in its media release, this initiative isn’t just about payment methods—it’s about ensuring equality and accessibility for all Australians. By protecting cash payments, the government sends a clear message: everyone deserves the freedom to choose how they manage their money in this evolving digital landscape.
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