Cash could disappear from ATMs?! Here’s how you could stay ahead of the crisis

Just as Australian seniors were breathing a sigh of relief over guaranteed access to cash, a new threat is looming that could disrupt this vital lifeline.

Transport workers at Armaguard have voted overwhelmingly for strike action, raising concerns about the flow of physical money.

The timing could be critical, with potential disruptions looming just as the Christmas shopping rush approaches.

Transport Workers Union (TWU) members in Victoria approved industrial action almost unanimously, with 118 out of 119 workers voting in favour.

Armaguard is responsible for transporting around 90 per cent of Australia’s cash to banks, ATMs, and retailers, making the strike a major risk for cash-dependent Australians.

For seniors who prefer cash transactions, this could create uncertainty at a time when access to money is essential.

The Australian Competition and Consumer Commission (ACCC) has stepped in with a draft determination to authorise the Australian Banking Association and industry participants to maintain cash distribution across the country.

ACCC Deputy Chair Mick Keogh said the authorisation recognises the critical role cash still plays, particularly for vulnerable Australians.

The Reserve Bank of Australia has highlighted that cash remains a vital backup when electronic payment systems fail, with Governor Michele Bullock stating there is a 'high priority on the community continuing to have reasonable access to cash withdrawal and deposit services'

Previous emergency measures included a combined $75 million deal involving Armaguard’s biggest clients, including Commonwealth Bank, ANZ, NAB, Westpac, Coles, Woolworths, Wesfarmers and Australia Post.

Armaguard and Linfox also agreed to a pricing arrangement devised by Deloitte Access Economics to support the continued financial viability of cash distribution, particularly in regional and remote areas.

Despite declining use over recent years, many Australians are still considered 'high-cash users', with more than 80 per cent of their transactions in cash, mostly in regional areas.

Older Australians are disproportionately affected by the decline of cash services, especially in rural and regional communities where bank branches and ATMs are closing.

For those without reliable internet or digital banking skills, losing access to cash can threaten independence and financial security.

Community groups, clubs, school canteens, markets and sporting events often rely heavily on cash, including coins.

Armaguard told a Senate inquiry last year that it was 'not in the business of providing services to regional and remote Australia as a public service', highlighting why ACCC intervention is necessary.

ACCC Chair Gina Cass-Gottlieb noted that remote and regional areas face particular challenges accessing cash, with limited bank branches and reliance on Australia Post or retailers.

The closure of rural bank branches has already caused community concern, while security companies transporting cash are also facing financial pressures.

The crisis has prompted a utility-style model for cash distribution, treating it as an essential service funded collectively by banks, retailers, and other users.

This approach, supported by Deloitte Access Economics, mirrors pricing models for healthcare, electricity, and disability support and matters most to seniors and regional Australians.

However, the model awaits ACCC regulatory approval, which could take up to six months, exceeding the lifespan of Armaguard’s current $25 million emergency funding.

TWU national secretary Michael Kaine said Armaguard workers are 'long overdue' for a pay rise, with many staff having not received a raise since August 2023.

Pay disparities persist between former Prosegur and Armaguard employees, with some legacy staff earning 10 to 35 per cent less.

TWU members in Queensland and New South Wales are voting soon on whether to join their Victorian counterparts, potentially extending disruption nationwide.

If strikes occur, workers could refuse to transport coins, reduce operations, launch picket lines, or stop all work for up to 72 hours, causing stores and banks to run short of cash.

The Transport Workers Union has announced that Armaguard’s 150 Victorian and Tasmanian members will ban overtime and weekend work indefinitely from next week.

Australians can take practical steps to prepare for potential cash shortages, such as keeping extra cash on hand, identifying multiple cash sources, having exact change, prioritising essential purchases, using digital payments if possible, and staying informed on service restoration.

Government pressure is mounting, with regulators urging the Albanese government to grant emergency powers to temporarily control Armaguard if its collapse threatens national cash confidence.

The Reserve Bank and Treasury have issued warnings about the risks, underscoring Australia's ongoing reliance on cash despite digital payment growth in cities.

The situation raises fundamental questions about who should maintain cash infrastructure as the economy becomes increasingly digital.

Even rivals like the Big Four banks and supermarkets have had to collaborate to ensure cash survival.

The current emergency deal is due to expire at the end of December, with Linfox executive chairman Peter Fox saying, 'we want to get this resolved. We just need to push the last bit over the line'

For seniors who value cash transactions, these developments bring both challenges and reassurance, with regulators, banks, and retailers actively working to protect access.

If you’re concerned about how cash availability can suddenly become limited, there’s a real-life example that illustrates the challenge perfectly.

This story shows what can happen when access to your own money isn’t as simple as it should be, highlighting the frustrations and planning needed to stay prepared.

It’s a practical follow-up that offers insight into managing these kinds of financial hurdles before they affect you.

Read more: When your own bank says 'no': Cash withdrawal dilemma hitting Australian seniors hardest

Have you noticed changes in cash availability in your area, and how are you preparing for potential disruptions during the busy Christmas period?