Why mandating cash payments is a good thing for the community
Australian businesses will be required to accept cash for essential items like groceries, fuel and medicine, under a proposed mandate by the federal government. An RMIT expert explains why this is necessary for financial accessibility.
Dr Angel Zhong, Associate Professor of Finance
“These reforms will still ensure accessibility for all Australians, particularly in rural and regional areas where digital connectivity might still be an issue, while allowing the system to continue to modernise.
“The reforms also align with international practice. For example, countries like Germany and Sweden have adopted similar measures to preserve financial accessibility while modernising their payment systems.
“This proposal is part of a broader strategy to enhance Australia’s payment ecosystem. It complements other recent initiatives, like banning excessive debit card surcharges and the inquiry into the closure of regional bank branches and ATMs.
“It's important to note that small businesses will be exempt from this mandate, in recognition of the operational challenges that cash handling can pose for smaller enterprises with limited resources. By targeting essential services and larger businesses, the policy focuses on areas where cash access is most critical without imposing undue burdens.
“As the payment system continues to evolve, it's vital that innovation occurs at a pace that is both efficient and inclusive. While we embrace digital payment advancements, we must also ensure that no one is left behind.
“Cash remains a lifeline for many people, particularly during disruptions like natural disasters or internet outages. Striking this balance is essential for maintaining trust and equity in our financial system.”
Dr Angel Zhong is an Associate Professor of Finance, specialising in global financial markets, behaviour and trends.
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