Cheques will become a thing of the past from 30 September 2029, but will cash still be ‘legal tender’ for making purchases, despite Australians’ increasing preference for digital payments by card, smartphone or online.

According to a statement from the Treasurer and Assistant Treasurer, ‘For many Australians, cash is more than a payment method, it’s a lifeline… there is an ongoing place for cash in our society under the Albanese Government’.

However, not all businesses will be required to accept cash after 1 January 2026, and which ones will be mandated to do so is now the subject of a government consultation with submissions sought from interested parties, one of which was St Vincent de Paul Society Australia.

‘We would want to ensure that no one is left behind, especially the elderly and those with limited access to technology (for whatever reason’, the Society’s submission began.

‘In the absence of legislative change, there is no guarantee that Australians will be able to continue to buy essential goods and services with cash in the future. (We would support legislation to ensure cash continues to be accepted as a means of payment)’.

The issues were examined in depth in a Treasury consultation paper, Mandating cash acceptance, that canvassed the potential problems of over-reliance on digital payments, or, as it described the issue, the ‘Impacts of reduced levels of cash acceptance’.

Explaining the government’s approach, the paper said, ‘The objective of the cash acceptance mandate is to ensure that cash remains a viable and accessible in-person payment option for essential items, allowing consumers, including those unable to use digital payment methods, to participate in the economy.’

Although a relatively small proportion of Australians have a heavy reliance on cash – around 1.5 million people use cash to make more than 80 per cent of their in-person payments – cash provides ‘an easily accessible backup to digital payments in times of natural disaster or digital outage’.

But there’s no denying cash is on the way out. Its share of payments dropped to 13 per cent in 2022, the last year for which RBA data is available. In 2007, cash accounted for 70 per cent of transactions. The figure is projected to fall to just four per cent by 2030.

The paper said a mandate on accepting cash meant those who rely on it will not be left behind, which the Society regards as ‘a fundamental principle’.

We agree with the importance of social inclusion, in particular, that digital inclusion requires the affordability of an internet connection, access to an appropriate device and good internet connectivity, and the ability to use a range of devices to engage with online systems.

Certain cohorts of people have struggled with the digital shift, particularly the elderly, and while the digital gap between capital cities and regions continues to narrow, the gap in access and digital ability remains significant.

The paper notes the 670 First Nations communities without digital access and the 24 per cent of people living with a disability (1.1 million) who are highly digitally excluded. We agree ‘the mandate must assist with payment system resilience, for example, during natural disasters or digital outages’.

These issues and more are now under consideration, with an announcement due later in the year on which businesses will still be required to accept cash. It might be noted that many prefer not to.

‘Mandating cash for essential purchases, such as groceries and fuel, means those who rely on cash will not be left behind,’ the Government promises.

The Society hopes this will be the guiding light of the new legislation.