Mandating that businesses accept cash when selling essential goods and services is a long-overdue reform that will benefit many Australians, particularly older Australians, COTA Australia says.
The Federal Government today announced that it will mandate that businesses must accept cash when selling essential items like groceries and fuel, with final details to be announced in 2025 and the mandate expected to commence from 1 January 2026.
Chief Executive Officer of COTA Australia - the leading advocacy organisation for older people - Patricia Sparrow said that with one in two Australians over 65 years and about 35% of 50-65 year olds reporting that they use cash on a regular basis, it is crucial that strong measures are put in place to protect them.
"For many older Australians, cash is a cornerstone of financial independence, not just a payment tool," Ms Sparrow said.
"There is a myriad of very valid reasons why people need to and prefer to pay with cash, including privacy and security concerns.
"As it has become harder and harder to pay with cash over the years, we've seen too many people left with no option to pay for goods that doesn't see them hit them with additional charges.
"Cash is legal tender and the changes Government are proposing to introduce will ensure that people are able to continue to be able to use it.
Ms Sparrow said that while anything that protects people's ability to pay with cash is welcomed, the details of the mandate will be key.
"The consultation process needs to be very robust and include the voice of older Australians at the centre of it," Ms Sparrow said.
"The new measures can't just be well-intentioned, they need to provide water-tight protections for the millions of Australians who still rely on cash."
Ms Sparrow also that the phasing out of cheques also needs to be done with the needs of our most vulnerable in mind.
"No one is against changes in technology, but as things progress we need to ensure no one is left behind. That's as true with the cash and it is with the phasing out of cheques.
"It's good to see the Government taking a nationally-consistent, measured approach to the phasing out. This should be done with our most vulnerable in mind ensuring that as cheques are phased out we find solutions for all, including telephone banking for those who aren't out and about in the community or online. This is key to ensuring that no one falls through the cracks."
