Over the past year, Australia has witnessed significant shifts in its cash usage and payment methods. Macquarie Bank took a notable step in May by becoming the first major Australian bank to transition to cashless operations, ending cash deposits while maintaining free ATM withdrawals. This decision sparked concerns about the future of cash transactions. Meanwhile, businesses such as Gloria Jeans have also gone cashless, joining chains like McDonald’s and KFC.
In response to these trends, the Albanese government announced a cash mandate in November, requiring businesses to accept cash for essential payments, although some smaller entities may be exempt. Treasurer Jim Chalmers acknowledged the rising preference for digital payments but asserted the ongoing necessity of cash.
Despite a decline in cash transactions, Australians still hold onto a considerable amount of cash, with $100.8 billion in banknotes in circulation as of mid-2024. Cheque usage continues to plummet, prompting government plans to phase them out entirely by 2029. Concurrently, Prime Minister Anthony Albanese announced a crackdown on card surcharges, aiming to eliminate fees on debit card payments while preserving credit card surcharges. This legislative effort aims to ease the financial burden on consumers amidst rising costs of living.