Cash as some might say, is “free money” since it is money unknowingly spent, not being visibly declined from our bank accounts. It is also reliable as digital outages exist, and cash is the most accessible backup so why should it ever be wiped?.. Well luckily it’s not for now, as.. the Albanese government has stepped in and announced a cash mandate. First announced on November 18th, 2024, the government stated that:

“Australians can continue to pay with cash for essential items if they want to.”

Cash

Apple Pay and other digital payment payments have been taking over the way consumers have been paying with supermarkets such as Woolworths and Coles shutting down their cash machines at checkout leaving more Australians with the option to use digital or physical credit cards.

Around 1.5 million Australians use cash to make more than 80 per cent of their in‑person payments.

The Government has a plan that businesses have to give access to cash payments when it comes to purchasing essential items such as fuel and groceries, leaving those people who rely on cash to not be left in the dark. The Treasury has commenced the current consultation since the end of 2024, when such businesses that supply essential goods and services will be placed under the mandate. furthermore, the government’s mandate talk will continue as consideration for those relying on cash as well as regional areas and those inaccessible or unable to use digital payments as well as the impact on business will be taken into account.

As cash and finance aren’t simple conversations, further steps are required to ensure long-term sustainability Therefore, final details will be announced this year in 2025, with results expected to commence from 1 January 2026.

Card

Contactless payments have already seen a worldwide spread. According to the RBA, contactless payments make up a great portion of transactions as customers enjoy the easy tap-and-go functionality. As the world becomes arguably lazier consumers are favouring faster approaches therefore technology will continue to expand and grow.

Banks have already pushed for a cashless program as 926 ATMs across all banks have been shut down as well as 230 local branches in the last financial year. This is arguably controversial as the implementation of future technology, cashless payments and AI increases so do job positions leaving vacancies and people redundant due to technological override.

On the note of emerging technologies, cryptocurrency and blockchain have caused Australians to have a range of payments in the digital world. Again an arguable manner as more frauds and scammers exist will the future of card payments be detrimental to society?

Cheque

Cash for now may not be completely gone although cheques aren’t looking too good. The Albanese government has also released its Cheque Transition Plan which will ensure that cheques lessen and eventually go out of use in an ordered and planned way. Cheque usage has decreased by 90 percent in the last 10 years with multiple banks ending their cheque insurance for customers.

Following the government’s new plan, cheques will stop being issued by the end of the financial year in 2028 and fully stop being accepted on the 30th of September 2029. If customers and businesses need assistance to switch to other payment methods the government is going to provide assistance.

Written By: Eva Pocrnja

Published: 8th of January 2025