The Coalition has vowed it will introduce a Cash Is King bill aimed at protecting people who prefer to use physical money for everyday purchases.
The Opposition said the cash mandate issued by the Albanese government last year, and implemented on January 1, is limited and does not go far enough.
Despite the increased use of digital payment methods, Labor introduced the new rules to allow for an “ongoing place for cash in our society”.
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The mandate applies to fuel and grocery retailers and in-person transactions of $500 or less, made between 7am and 9pm.
The Cash Is King bill, announced by Shadow Minister for Financial Services Kevin Hogan, is said to expand cash acceptance to major retailers including chemists, hardware stores, department stores, restaurants and fast-food chains.
It will also require Commonwealth agencies to accept cash for eligible over-the-counter payments, lift the transaction limit from $500 to $2000, and remove the 7am to 9pm restriction.
While the government’s cash mandate allows consumers to continue paying bills, including utilities, phone bills and council rates, in cash, Hogan said Labor’s cash mandate falls well short of what Australians expect.
“Around 1.5 million Australians rely on cash for most of what they buy. But Labor’s rules leave out essential goods like medicines, clothing and hardware supplies,” Hogan said.
“If you walk into a shop with a $50 note, you shouldn’t be turned away. That shouldn’t be controversial.”
Despite agreeing with the government that small businesses with an annual turnover of under $10 million be exempt, the Coalition’s bill is said to cover more than 80 per cent of in-person retail transactions.
“Australians should be able to choose how they pay, without being forced into a cashless economy,” Hogan said.
“Cash is king, and under the Coalition we won’t see it overthrown.”
Jason Bryce of advocacy group Cash Welcome said the Cash Is King bill will capture big retailers including Kmart, Chemist Warehouse, Bunnings, Tyrepower, KFC and McDonalds’.
“I’m hearing there’s now quite a few KFC outlets not accepting cash and that’s a real concern. The big end of town needs to be part of the cash mandate,” Bryce said.
“Government departments need to also accept cash, like councils and motor registries. It is our legal tender so government needs to be on board.
“The current cash mandate only applies to supermarkets and servos so it’s inadequate if the idea is to keep cash generally accepted and available in every community.”
Bryce said the bottom line should be that “everything needed in order to live should be payable in cash”.
The government said the current cash mandate will be reviewed after three years to ensure it is “functioning as intended where it matters most”.
The review will also consider whether the mandate should be expanded, its impact on businesses, and any developments in cash distribution and access.
