In an era when tapping a card or phone has become the norm for transactions, the humble banknote could be making a comeback, and refusing it might cost businesses and individuals a hefty price tag.

A new legislative push by former Nationals MP Andrew Gee could see fines of up to $25,000 levied against those who turn away cash payments.

The proposed bill, Keeping Cash Transactions in Australia Act 2024, introduced by former Nationals Member of the Parliament (MP) Andrew Gee to the federal parliament, aims to safeguard the consumer's right to use cash, especially for transactions under $10,000.

While individuals could face fines of up to $5,000, businesses would face fines of up to $25,000 for refusing to accept cash.

The only time one could justifiably turn down cash is if it poses a 'security' threat.

MP Andrew Gee proposed a bill where businesses and individuals could face a fine of up to $25,000 for refusing cash transactions. Credit: Shutterstock

Despite the digital shift in our spending habits, particularly accelerated by the COVID pandemic, cash is experiencing a resurgence.

The Reserve Bank of Australia's data indicated a 3.6 per cent increase in ATM cash withdrawals in February this year compared to the same month in 2023.

Andrew Gee's stance is clear: ‘I don’t think it is too late because many Australians, particularly senior Australians, who are the heaviest users of cash, still want the freedom to use it, and why shouldn’t they have that freedom?’

While the Private Member’s Bill can be a difficult bill to pass, Gee hoped for its possible legislation.

‘I think while…we have Australians out there who have concerns about using card and online banking, then we should give them the option of cash, and I don’t think it’s too much to ask,’ he said.

The bill, supported by Independent MPs Bob Katter and Dai Le, recognises the diverse needs of communities.

‘It’s vital for our community in western Sydney, and in particular culturally and linguistically diverse communities because a lot of them do not trust the banking system,’ Le said.

The Senate's inquiry into rural banking services also highlighted the need for 'reasonable access to cash and financial services' across the nation.

But it's not just about convenience or preference. As journalist Suzanne Mostyn pointed out on Sunrise, going cashless isn't an option for everyone.

‘There are people in rural areas, and they’re not all oldies, who are shovelling cash under the mattress, but there are people who genuinely don’t want to be tracked,’ Mostyn said.

‘Women who are fleeing domestic violence situations, who want anonymity as to where they’re going and where they’re being sheltered.’

‘There is a lot more to this than meets the eye.’

The push for this bill comes as banks like Macquarie Bank are moving towards a cashless model, citing changes in customer banking habits.

Key Takeaways

• Former Nationals MP Andrew Gee has introduced to parliament the Keeping Cash Transactions in Australia Act 2024, which proposes fines for businesses and individuals that refuse cash transactions below $10,000.
• Under the bill, individuals could be fined up to $5,000 and businesses up to $25,000, with an exemption only for security reasons.
• The use of cash in Australia has increased, with more Australians, especially senior citizens, wanting the freedom to use it.
• Independent MPs, including Bob Katter and Dai Le, are supporting the bill, highlighting its importance for rural and culturally diverse communities that may distrust the banking system.

Have you encountered businesses that refuse cash? Do you prefer cash transactions for certain purchases? Share your thoughts and experiences in the comments below.

 

[MelanieJune]

People should always have options. Nothing good can come out of Gvt making choices for people.

 

[steve.bryce]

There are shops in Albany WA, that are cashless now, it is annoying.
at the airport, the cafe only accepts card payment.
and they make you pay for the bank cost of transaction.
it is so expensive, and customers have no option, if a flight is delayed, or cancelled, but to use the service.
the airport is about 10 km away from the nearest other retail outlet.
and many people do not drive themselves there.

i say cash should always be an option.

 

[Jules1]

When a spare parts business refused to sell a $150 item for cash, s stranger paid with his Visa in exchange for cash. We still need to retain ability to pay cash.

 

[Relby]

 

[Nazza CNS]

Fine is too heavy, but agree I'm over businesses that won't take cash and charge a surcharge. Actually the card surcharge is what I want to see abolished it costs consumers hundreds to thousands of dollars a year

 

[pamsy]

Yes, keep cash. I dont use businesses that went cash free

 

[Sherza]

I have found 3 businesses that won’t accept cash, and have made it very clear to them they will no longer get my business. I hope the bill passes

 

[Free.lander]

Cash is legal tender and it is a right of every Australian to use cash where they consider it appropriate. Bargains can be gained by the use of cash, and for large sums , direct transfer is safer.
IT has to be considered like this-- we fuel up and go to pay by card but the system is down
The business is cashless, so what happens - we drive off and get a fine, we can't stand around all day waiting for some IT expert to reset -- The business loses money
Not an imaginary scenario but a daily happening across the country. WE cannot put the petrol back in the tank, like we can leave the items on the check out counter
People want the use of cash , the banks want it gone because then they can up the surcharge rate on car transactions.
Bring in the laws and up the penalty as $25 g for a business is pennies to them . If we are going to flog the wrong doers, get a bloody big whip and do a decent job.

 

[Teach]

The argument by Macquarie Bank that cites "Changes in Banking habits" is spurious as when banks close branches and take away ATM machines, they force customers to "change their habits". Many people prefer cash as there are no fees attached. The banks want a cashless society as they get a fee on every transaction and are making enormous profits, so why wouldn't they push for a cash ban. And. in the extreme possibility that our systems or electricity grids were down, we need cash to buy anything.

 

[Dennis]

I have always paid cash, carry my visa card in case of emergencies.

 

[Cathyann]

Cashless society ??? What about the Country markets, kids who make lemonade to earn a few bob, do odd jobs etc to earn pocket money , pocket money itself, your local handyman, gardener, just giving a tip for job well done- money to help the homeless on the street or just at birthday times for Grand children and Great Grandchildren etc etc etc Not to mention when the is an outage or bank gets hacked and has to close down while they try to sort it out -There have been so many more glitches of late and they still do not learn.
Who profits most with this move? The already fat cats

 

[gapah]

Ca$h doesn't run on electricity or satellites. My son in law was at a chemist in line waiting to pay for medicine his baby needed and the eftpos went down. Cash saved him as all the customers in front of him could not pay. Speaking of young.. with Cash they learn and See where Ca$h comes from (hopefully working for it) and where it goes. Thank you Andrew Gee, for this proposed bill. Not all of us know how to do internet banking . Rural and even new subdevelopments have inadequate reception to even do our banking. This is where we need simple cash and no fees. We do need options though, travelling with a card is much more convenient and necessary in other countries. Thank you Andrew Gee I too hope this bill goes through.

 

[IAN3005]

It's about time they did something about it....

 

[BruceC]

This bill will not pass!
It does not suit the agenda of the governments desire to know exactly where you spend every cent of your $$$.
A company named HOUSE has been cashless for mote than a year now.
And FFS stop blaming Covid.

Covid was introduced for two reasons: Reduce the old age population of the world & to force is into a cashless society where governments have complete knowledge and control of peoples finances!

Our own local council, Casey , is totally cashless when you go to their theatre and cafe at Bunjil place.

Don‘t think they will receive a fine if this bill just happened to pass!

 

[trakn]

Cash is legal tender and it is a right of every Australian to use cash where they consider it appropriate. Bargains can be gained by the use of cash, and for large sums , direct transfer is safer.
IT has to be considered like this-- we fuel up and go to pay by card but the system is down
The business is cashless, so what happens - we drive off and get a fine, we can't stand around all day waiting for some IT expert to reset -- The business loses money
Not an imaginary scenario but a daily happening across the country. WE cannot put the petrol back in the tank, like we can leave the items on the check out counter
People want the use of cash , the banks want it gone because then they can up the surcharge rate on car transactions.
Bring in the laws and up the penalty as $25 g for a business is pennies to them . If we are going to flog the wrong doers, get a bloody big whip and do a decent job.

Have seen travellers strand

 

[IAN3005]

This bill will not pass!
It does not suit the agenda of the governments desire to know exactly where you spend every cent of your $$$.
A company named HOUSE has been cashless for mote than a year now.
And FFS stop blaming Covid.

Covid was introduced for two reasons: Reduce the old age population of the world & to force is into a cashless society where governments have complete knowledge and control of peoples finances!

True...

 

[2OldDucks]

Yes

 

[BruceC]

Fine is too heavy, but agree I'm over businesses that won't take cash and charge a surcharge. Actually the card surcharge is what I want to see abolished it costs consumers hundreds to thousands of dollars a year

So you would like a smaller fine?
Large companies will laugh at a small fine and still refuse cash!

 

[trakn]

Cash is legal tender and it is a right of every Australian to use cash where they consider it appropriate. Bargains can be gained by the use of cash, and for large sums , direct transfer is safer.
IT has to be considered like this-- we fuel up and go to pay by card but the system is down
The business is cashless, so what happens - we drive off and get a fine, we can't stand around all day waiting for some IT expert to reset -- The business loses money
Not an imaginary scenario but a daily happening across the country. WE cannot put the petrol back in the tank, like we can leave the items on the check out counter
People want the use of cash , the banks want it gone because then they can up the surcharge rate on car transactions.
Bring in the laws and up the penalty as $25 g for a business is pennies to them . If we are going to flog the wrong doers, get a bloody big whip and do a decent job.

Have seen many a traveller
in the country stranded because they only carry a card. Either the net or phone were down.