Cash users have been urged to give their two cents on the government's proposed law on mandating businesses to accept physical money as payment. (Source: Getty)
But before the rule gets introduced to parliament, they want to hear from people who are passionate about the topic. Treasury has opened up a consultation process that will finish in mid-February and a final decision will be announced later next year.
"Interested parties are invited to provide responses to one or more of the consultation questions outlined in this paper and comment on implementation considerations more generally," the consultation paper said.
Data shows that 94 per cent of Aussie businesses carry and accept cash, but the government wants to make sure that number doesn't fall too far as more people opt for digital payments.
The RBA’s 2022 Consumer Payments Survey found that 13 per cent of transactions were made using cash, with electronic payment methods making up the other 87 per cent.
The new legislation aims to protect the 1.5 million Australians who use cash for 80 per cent of their in-person payments.
It will outline which businesses will be considered "essential" and therefore will be required to always accept cash as payment.
The government is aiming to have the legislation implemented by January 1, 2026.
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How will the cash law work?
That's the big question on everyone's lips and the government will spend several months trying to strike the right balance, which is why the consultation period is so important.
A government discussion paper that was released last week hinted that supermarkets, pharmacies, dentists, GPs, hardware stores, insurers, pet stores, vets, service stations and mechanics will be on the essentials list.
Cafes, takeaways, bottle shops and hairdressers could be exempt.
The paper looked at whether there could be exceptions included in the legislation, like mandating that cash doesn't have to be accepted after 10pm for safety reasons.
It also pointed to an overseas rule where a business wouldn't have to accept cash as payment for something exceeding $500.
Bryan Wareham runs The Heritage Bakery on the NSW south coast and he told Yahoo Finance that security was one of the big reasons why they went cashless.
"We would have somewhere in our possession possibly considerable amounts of money... and if I'm the owner of the business walking to my car and I get whacked over the head with a spade by someone who thinks I've got the money in my pocket... no, I don't want that," he explained.
What would happen if a business broke this new rule?
The paper discussed what measures might need to be brought in to ensure businesses stick to the law.
“Anti-avoidance measures could assist in preventing businesses from circumventing the cash acceptance mandate,” it said.
“Without these measures, businesses may find otherwise lawful ways to undermine the effectiveness of the mandate.”
It didn't indicate whether the penalties could be financial or other. This will be part of the consultation period.
Another piece of legislation submitted to parliament has called for all Aussie businesses that provide in-person transactions to accept cash, and the penalty for non-compliance could be as high as $25,000.
Businesses that provide or offer essential goods and services could be forced to accept cash as payment. (Source: Getty) ·Traceydee Photography via Getty Images
Who do they want to hear from in the consultation period?
Treasurer Jim Chalmers said there are specific areas in the use of cash that will help guide them in creating this new law:
An appropriate definition of essential goods and services to ensure cash can always be used to access the basics;
Which businesses the mandate should apply to; and
Other features, such as transaction caps or time limits, which may be necessary to ensure the mandate works for both businesses, particularly small businesses, and consumers.
"The Government expects industry to play a crucial role in supporting this initiative, ensuring that the shift towards digital payments does not disadvantage those who must rely on cash payment," it said.
"This is in everyone's best interest.
"Your input will help shape the path forward, ensuring that the mandate effectively balances the needs of all Australians and supports a more efficient and inclusive payments system.
"We will consider the needs of those who rely on cash, including people in regional areas and those unable to use digital payments, as well as the impact on businesses, particularly small businesses. We’re also seeking views on what further steps are required to ensure the long‑term and sustainable distribution of cash to enable adequate access."
You can make a submission via two methods, however the government said it would prefer the digital option.
