Are you ready for Albo’s bold new cash plan? Here’s how it could change how you pay every day
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If you’ve ever fumbled for a $20 note at the checkout, only to be told 'Sorry, we’re cashless now,' you’re not alone.
The humble banknote—once the backbone of every Aussie wallet—seems to be on the endangered species list.
But is cash really on its way out, or is there still life in the old dog yet? The Albanese government is weighing up a radical new plan that could change the way we all access and use cash, and it’s got plenty of people talking.
The government, spurred on by the Council of Financial Regulators (that’s the Reserve Bank, Treasury, and the Australian Prudential Regulation Authority for those playing at home), is considering a major shake-up of how cash is distributed across the country.
They propose appointing a dedicated 'Minister for Cash' and potentially taking over the entire cash distribution network.
Why? Because as more Aussies tap, swipe, and click their way through daily life, the demand for physical cash is dropping. This decline is putting pressure on the companies that move money around—like Armaguard, which has a near-monopoly on cash distribution.
The regulators are worried that if these companies struggle or collapse, it could leave communities—especially in the regions—without easy access to cash.
‘The decline in the use of cash for payments in Australia has challenged the economics of the cash distribution sector, upon which access to cash relies,’ the paper says.
‘Challenges in the cash distribution sector include the long-term decline in the use of cash for payments, and a high degree of concentration and limited competition in parts of the market.’
Under the proposal, the Minister would have the power to ‘designate specific registered entities’ to keep the cash flowing. ‘To be designated, a registered entity would provide critical cash services to a significant part of the market,’ it continues.
‘To ensure crisis readiness, a regulator may need ongoing powers enabling it to assess a designated entity’s crisis preparedness and to improve that entity’s resolvability in a crisis.’
It might sound a bit over the top, but the idea is to have someone in government with the power to make sure cash keeps flowing where it’s needed. This 'Minister for Cash' would be able to designate certain companies as essential for cash services, and make sure they’re ready to handle any crisis—like a sudden run on cash, or a major company going under.
The consultation paper even suggests new laws to guarantee the future of cash, ensuring that no matter how digital we get, there’s always a way to get your hands on real money if you need it.
Source: ABC News (Australia) / Youtube.
But not everyone thinks a government takeover is the answer.
Jason Bryce, founder of the Cash Welcome campaign, says the plan is a total overreach.
‘This is massive overkill — what I’m saying in my submission is cost-free for the government, the best solution is pass a law that says cash is legal tender in Australia and all retailers must accept cash,’ he told Daily Mail Australia.
‘Pass a law that says banks must provide an ATM or a bank branch in every town or community.
'If you do those two things, there will be no cash crisis,' Bryce says. 'The market signals will be clear, banks will stop talking, talking, talking about going cashless.'
He also points out that the data the government is using might be out of date. The Reserve Bank’s last survey, from 2022, found only 16% of in-person transactions were done in cash—a number skewed by pandemic fears about 'dirty' banknotes.
‘That number — 16 per cent of in-person transactions — dates from that period and is no longer relevant and should not be used by policymakers,’ he says.
The Reserve Bank’s Consumer Payments Survey only comes out every three years, meaning the official data could be missing a post-Covid cash rebound. ‘What’s going to happen if it jumps up from 16 per cent?’ Bryce asks.
If you’ve noticed fewer ATMs around, you’re not imagining things. Since banks scrapped the $2 ATM fee in 2017, the number of ATMs has more than halved—from nearly 14,000 to just over 5,400.
Source: ABC News (Australia) / Youtube.
He also lays part of the blame at the feet of the banks, who in 2017 scrapped $2 ATM fees for using a rival machine, and with it, about $500 million in revenue that could have gone toward funding cash services like Armaguard.
‘Banks need to pay for cash distribution — they gave up $500 million annually, revenue, and now they’re complaining like stuck pigs about having to pay Armaguard $25 million every six months,’ he says.
Last month, Australia’s Big Four banks, Woolworths, and Wesfarmers (owners of Bunnings, Kmart, and Officeworks) agreed to chip in $25.5 million to keep Armaguard afloat from July through December.
‘Major banks and major retailers have reached an agreement with Armaguard to extend their financial contribution for a further six months,’ the Australian Banking Association said.
But the squeeze on cash services has been building for years. Since the $2 fee was scrapped, the number of ATMs has more than halved—from 13,814 in June 2017 to just 5,476 in June 2023, APRA data shows.
Bank branches have also been disappearing, falling from 5,694 to 3,360. The Commonwealth Bank even flirted with charging $3 for over-the-counter cash withdrawals last year, before shelving the idea.
In 2023, the competition watchdog gave Linfox Armaguard and Spanish group Prosegur the green light to merge.
The consultation paper suggests new laws to lock in cash’s future:
‘Given the government’s commitment to maintaining access to cash and the subsequent announcement of its intention to implement a cash acceptance mandate, it is necessary to consider whether existing regulatory regimes can support the cash distribution sector continuing to perform its critical role in facilitating long-term, sustainable and adequate access to cash across Australia,’ it says.
Public submissions on the plan close this Friday.
Read more: Cash isn’t dead yet: Big banks and retail giants unite to save Armaguard – and keep your money moving
Do you still use cash regularly? Have you been caught out by a 'cashless' business or struggled to find an ATM? What do you think of the government’s plan—overkill, or a necessary step to protect our right to use cash? Share your thoughts and experiences in the comments below!
The humble banknote—once the backbone of every Aussie wallet—seems to be on the endangered species list.
But is cash really on its way out, or is there still life in the old dog yet? The Albanese government is weighing up a radical new plan that could change the way we all access and use cash, and it’s got plenty of people talking.
The government, spurred on by the Council of Financial Regulators (that’s the Reserve Bank, Treasury, and the Australian Prudential Regulation Authority for those playing at home), is considering a major shake-up of how cash is distributed across the country.
They propose appointing a dedicated 'Minister for Cash' and potentially taking over the entire cash distribution network.
Why? Because as more Aussies tap, swipe, and click their way through daily life, the demand for physical cash is dropping. This decline is putting pressure on the companies that move money around—like Armaguard, which has a near-monopoly on cash distribution.
The regulators are worried that if these companies struggle or collapse, it could leave communities—especially in the regions—without easy access to cash.
The Albanese government is considering taking over Australia’s cash distribution system, with financial regulators recommending a new 'Minister for Cash' be appointed to oversee ongoing access to banknotes. Image source: Yahoo Australia / Youtube.
‘The decline in the use of cash for payments in Australia has challenged the economics of the cash distribution sector, upon which access to cash relies,’ the paper says.
‘Challenges in the cash distribution sector include the long-term decline in the use of cash for payments, and a high degree of concentration and limited competition in parts of the market.’
Under the proposal, the Minister would have the power to ‘designate specific registered entities’ to keep the cash flowing. ‘To be designated, a registered entity would provide critical cash services to a significant part of the market,’ it continues.
‘To ensure crisis readiness, a regulator may need ongoing powers enabling it to assess a designated entity’s crisis preparedness and to improve that entity’s resolvability in a crisis.’
It might sound a bit over the top, but the idea is to have someone in government with the power to make sure cash keeps flowing where it’s needed. This 'Minister for Cash' would be able to designate certain companies as essential for cash services, and make sure they’re ready to handle any crisis—like a sudden run on cash, or a major company going under.
The consultation paper even suggests new laws to guarantee the future of cash, ensuring that no matter how digital we get, there’s always a way to get your hands on real money if you need it.
Source: ABC News (Australia) / Youtube.
But not everyone thinks a government takeover is the answer.
Jason Bryce, founder of the Cash Welcome campaign, says the plan is a total overreach.
‘This is massive overkill — what I’m saying in my submission is cost-free for the government, the best solution is pass a law that says cash is legal tender in Australia and all retailers must accept cash,’ he told Daily Mail Australia.
‘Pass a law that says banks must provide an ATM or a bank branch in every town or community.
'If you do those two things, there will be no cash crisis,' Bryce says. 'The market signals will be clear, banks will stop talking, talking, talking about going cashless.'
He also points out that the data the government is using might be out of date. The Reserve Bank’s last survey, from 2022, found only 16% of in-person transactions were done in cash—a number skewed by pandemic fears about 'dirty' banknotes.
‘That number — 16 per cent of in-person transactions — dates from that period and is no longer relevant and should not be used by policymakers,’ he says.
The Reserve Bank’s Consumer Payments Survey only comes out every three years, meaning the official data could be missing a post-Covid cash rebound. ‘What’s going to happen if it jumps up from 16 per cent?’ Bryce asks.
If you’ve noticed fewer ATMs around, you’re not imagining things. Since banks scrapped the $2 ATM fee in 2017, the number of ATMs has more than halved—from nearly 14,000 to just over 5,400.
Source: ABC News (Australia) / Youtube.
He also lays part of the blame at the feet of the banks, who in 2017 scrapped $2 ATM fees for using a rival machine, and with it, about $500 million in revenue that could have gone toward funding cash services like Armaguard.
‘Banks need to pay for cash distribution — they gave up $500 million annually, revenue, and now they’re complaining like stuck pigs about having to pay Armaguard $25 million every six months,’ he says.
Last month, Australia’s Big Four banks, Woolworths, and Wesfarmers (owners of Bunnings, Kmart, and Officeworks) agreed to chip in $25.5 million to keep Armaguard afloat from July through December.
‘Major banks and major retailers have reached an agreement with Armaguard to extend their financial contribution for a further six months,’ the Australian Banking Association said.
But the squeeze on cash services has been building for years. Since the $2 fee was scrapped, the number of ATMs has more than halved—from 13,814 in June 2017 to just 5,476 in June 2023, APRA data shows.
Bank branches have also been disappearing, falling from 5,694 to 3,360. The Commonwealth Bank even flirted with charging $3 for over-the-counter cash withdrawals last year, before shelving the idea.
In 2023, the competition watchdog gave Linfox Armaguard and Spanish group Prosegur the green light to merge.
The consultation paper suggests new laws to lock in cash’s future:
‘Given the government’s commitment to maintaining access to cash and the subsequent announcement of its intention to implement a cash acceptance mandate, it is necessary to consider whether existing regulatory regimes can support the cash distribution sector continuing to perform its critical role in facilitating long-term, sustainable and adequate access to cash across Australia,’ it says.
Public submissions on the plan close this Friday.
Read more: Cash isn’t dead yet: Big banks and retail giants unite to save Armaguard – and keep your money moving
Do you still use cash regularly? Have you been caught out by a 'cashless' business or struggled to find an ATM? What do you think of the government’s plan—overkill, or a necessary step to protect our right to use cash? Share your thoughts and experiences in the comments below!
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