Australia could be virtually cashless by the end of the decade, despite new federal government rules forcing supermarkets and petrol stations to accept cash for smaller purchases.
Treasurer Jim Chalmers has mandated that from January 1, fuel and grocery retailers across Australia must accept cash payments for in-person transactions of $500 or less, made between 7am and 9pm.
Small businesses with an annual turnover of less than $10 million are exempt.
The move comes as 1.5 million Australians still rely on cash for more than 80 per cent of their in-person transactions.
With no universal rule requiring merchants to accept cash, many businesses are refusing it altogether, raising serious concerns about social and economic inclusion.
Consumer advocates warn the trend is leaving vulnerable Australians behind. However, finance expert Dr Angel Zhong from RMIT University said the mandate will not stop the shift toward digital payments.
She predicted Australia will be ‘functionally cashless’ by 2030, meaning cash will still exist but more than 90 per cent of everyday transactions will be digital.
‘2030 remains a reasonable estimate,’ she told news.com.au.
RMIT finance expert Angel Zhong (pictured) believes Australia will be ‘functionally cashless’ by 2030, meaning more than 90 per cent of everyday transactions will be digital
Treasurer Jim Chalmers (pictured) mandated from January 1, fuel and grocery retailers across Australia must accept cash payments for in-person transactions of $500 or less
‘The trend toward digital payments is strong, driven by technology adoption, merchant preferences, and consumer convenience.’
Cards, mobile wallets and online transfers already dominate, she said, highlighting benefits such as efficiency and security, but also risks including exclusion for vulnerable groups and privacy concerns.
Council on the Ageing Australia chief Patricia Sparrow said that for many older Australians, cash isn’t a convenience – it’s essential, with nearly half of Australians over 65 still using cash regularly.
‘The increasing refusal by some businesses to accept cash has created unnecessary barriers for people simply trying to pay for essentials,’ she said.
‘No one should be turned away or penalised for wanting to pay for groceries or fuel with legal tender.’
National Seniors Australia CEO Chris Grice said the government’s cash mandate was a small win but warned it has limitations.
‘While we welcome the mandate applied to fuel and grocery retailers, as well as the payment of bills at Australia Post, we’re disappointed to see it so limited,’ he told The Golden Times.
‘We believe there is still some work to do before it upholds the expectations of consumers – not only older consumers, but all consumers who use and rely on this valid form of currency.’
Pro-cash campaigners have scored some wins, with the government striking a deal with the Big Four banks to keep regional branches open until at least 2027
Pro-cash campaigners have scored some wins, with the government striking a deal with the Big Four banks to keep regional branches open until at least 2027.
But the broader trend is clear. Cash use has plunged from 70 per cent of payments in 2007 to just 13 per cent in 2022, according to the Reserve Bank.
And the infrastructure is disappearing fast, with nearly 5,000 ATMs removed in five years and bank branches falling by more than 1,500.
Australian Prudential Regulation Authority data shows there are now just 3,205 bank branches across the country.
The backlash over an increasingly cashless society grew last year, with thousands of Australians joining a ‘Cash is King’ protest in April, queuing at banks and ATMs to withdraw money in a show of resistance.
There have also been a series of recent positive developments for pro-cash advocates, such as the government striking an agreement with the Big Four banks to keep their regional branches open until at least 2027.
Dr Zhong noted both positives and negatives when it comes to a functionally cashless society.
‘The positives include efficiency, reduced costs for businesses, better security, and improved financial tracking,’ she said.
‘However, negatives include exclusion risks for vulnerable groups, privacy concerns, and dependence on technology.’
