Cheques will go, but cash will stay, says Reid
The Federal Government is taking action so Australians can continue to pay with cash for essential items if they want to, while also ensuring an orderly transition to phase out cheques, according to Member for Robertson Dr Gordon Reid.
"People are increasingly using digital payment methods, but there is an ongoing place for cash in our society.
"The Government will mandate that businesses must accept cash when selling essential items, with appropriate exemptions for small businesses.
"Mandating cash for essential purchases, such as groceries and fuel, means those who rely on cash will not be left behind.
"For many Australians, cash is more than a payment method, it's a lifeline," Dr Reid said.
Final details of the "cash mandate" will be announced next year.
Dr Reid said that, subject to the outcomes of consultation, the mandate would start at the beginning of 2026.
The Government's Cheques Transition Plan "includes a long lead time for customers and businesses to adjust to alternative payment methods with cheques still being issued and accepted for several years".
Under the Plan, cheques will only stop being issued by June 30, 2028, and stop being accepted on September 30, 2029.
"The usage of cheques has declined by 90 per cent in the last 10 years and many banks and financial institutions are ending cheque issuance for new customers.
"Around 1.5 million Australians use cash to make more than 80 per cent of their in-person payments.
"Cash also provides an easily accessible back-up to digital payments in times of natural disaster or digital outage."
SOURCE:
Media release, 25 Nov 2024
Gordon Reid, Member for Robertson