In an age where tapping a card or phone has become the norm for many, the humble cash transaction is facing a challenge. The Australian government has proposed a mandate to ensure that cash remains a legal tender for essential purchases, but seniors groups are voicing concerns that the measures don’t go far enough.
The proposed mandate, set to take effect on January 1, 2026, aims to protect Australians who rely on cash, particularly for essential items such as groceries, infant clothing, cleaning and personal care products, medicines, and fuel.
However, the mandate draws a line between essential and non-essential items, with businesses potentially able to refuse cash for purchases deemed non-essential, such as cakes, biscuits, takeaway, adult clothing, alcohol, furniture, and tools.
This distinction has sparked debate among seniors and advocacy groups. They argue that cash should be universally accepted, not just for the sake of tradition, but for practical reasons. Cash transactions eliminate card surcharges, reduce the risk of online banking fraud, and can be a crucial tool for budgeting, especially for those on fixed incomes.
At the heart of the community, local business owners like Tass Maniatis welcome cash with open arms. ‘We have an older demographic in the area but the young ones too,’ she said, highlighting the cross-generational appeal of cash.
Meanwhile, Chris Grice from National Seniors Australia points out the potential confusion the mandate could cause.
‘If you go to the till and you pay for bread and you pay for cake, does that mean that you pay cash for one item and then you’ve got to use a card for the other?’ Grice said, highlighting a scenario that underscores the complexity and potential inconvenience the mandate could introduce at the checkout.
The deadline for public submissions on the mandate is looming, and Treasurer Jim Chalmers has emphasised the importance of community input: ‘What this consultation means is that people from all corners of our community are able to express a view.’
To submit your input on the new cash mandate, you can do so either by e-mail or by post. See below details:
By e-mail:
CashAcceptanceConsultation@treasury.gov.au
By post:
Director, Retail Banking and Currency Unit
Banking and Credit Branch, The Treasury
Langston Crescent, PARKES ACT 2600
As the deadline approaches, it’s crucial for seniors and other cash-reliant Australians to make their voices heard, especially if they think the mandate’s current form may not fully address the needs and concerns of those who prefer or depend on cash transactions.
We at YourLifeChoices understand the importance of having options, especially when it comes to managing finances in later life. We encourage our readers to participate in the consultation process and share their thoughts on the mandate.
What has your experience been with cash and card transactions? Do you feel the proposed mandate is enough? Join the conversation in the comments below and let’s ensure that the voices of Australian seniors are heard loud and clear.
Also read: Attention cash users: A major financial shift is coming—have your say now!
Cash should always be Legal Tender regardless of what the Banks or Government say. Buy a can of drink and a couple of lollies for a grandchild for 5 or 6 dollars cash but with a card costs 7 or 8 dollars.
Cash should be legal forever as it gives us the option of not having it in a bank with the possibility that I will not be scammed and losing the lot . My bank said they cannot guarantee me I won’t be scammed . 😡😡
I must have missed the original posting, but I’ll NEVER use a card or my phone for food or general spending. I only use CASH!
I don’t want to reconcile an 8-10 page statement on my bank account each month. I usually have 2-3 pages, which does for me.
I pay my bills each fortnight, then withdraw my food, spending & chiro ‘gap’ payment (when it’s required) in cash. I refuse to pay a ‘fee’ for using my card, as I have no fees on my bank account, so why should I pay them just for convenience?
I have my budget in Excel, and use MYOB to keep an eye on all my spending. I’m a retired bookkeeper, so I know what I’m doing.