The preservation of cash as a means of participating in the economy is a critical part of promoting equality for a cohort who are already vulnerable, writes St Vincent de Paul Society’s Mark Gaetani. Source: Eureka Street.
As digital payments grow, the use of cash is rapidly declining, with its share of payments dropping to 13 per cent in 2022, the last year for which Reserve Bank of Australia data is available.
In 2007, cash accounted for 70 per cent of transactions. The figure is projected to fall to just four per cent by 2030.
The move away from cash is not due to government policy but because the market – namely us – is speaking.
Cash is no longer king, despite the face of King Charles III appearing on our coins.
Concerned by the trend, the Australian Government is consulting on the future of cash usage and how to ensure, in the words of the Treasury discussion paper Mandating Cash Acceptance, that “businesses supplying essential goods and services must accept cash as payment method, with appropriate exemptions for small businesses”.
The paper notes that core to the Government’s payments plan is maintaining access to cash for essential items. A December statement by the Treasurer said as much: “For many Australians, cash is more than a payment method, it’s a lifeline… there is an ongoing place for cash in our society.”
Current laws allow businesses to choose which payment types they accept, and cash is not mandatory, although 94 per cent of businesses continue to take it.
‘Mandating cash for essential purchases, such as groceries and fuel, means those who rely on cash will not be left behind,” the paper states.
Not leaving people behind is vital, as St Vincent de Paul Society in Australia told the inquiry: “This does not mean simply ‘bringing them up to speed’ but rather enabling them to continue to use cash for the purchase of essential goods and services.”
The society acknowledges the paper’s support for social inclusion, such as older people and those living in remote communities, but believe it lacks detail on additional strategies, for example community and business education and training, and improved telecommunications infrastructure.
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In a cashless society, inclusion must rule (By Mark Gaetani, Eureka Street)
