Proposed bill aims to fine businesses and individuals up to $25,000 for refusing cash payments

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.


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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.
 
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I absolutely prefer cash. I’m 70 and old school. I take out enough for the week for shopping, petrol and any other things I might like. Then I know that that’s my limit for the week. I don’t believe in tapping the card. Too many scammers out there and how many overspend using card. I also save coins till jars are full then take to the bank. Surprising how much I can save this way. I’m still working 2/3 days a week so I am lucky to be able to do this. I don’t owe money, own my home and am grateful I have no debts.
Good for you Sue. Sounds like a good choice and it's working for you. Certainly a very safe option for mitigating avenues available to digital criminals.

I worked 7 days a week (nights), self-employed (for almost 2 decades) until 72 years was reached. I'm also very happy to be debt free and a home owner. I too use cash. But I also use the digital world for many transactions as the digital world can do things similar to what thrifty cash only people do.

One example is I recently opened an account with a mob called Raiz. One of the interesting features of Raiz is that it works out all the loose change from each digital transaction I've made, adds it all up over each week and then deducts that amount from my nominated regular account (different bank) and credits the amount to the Raiz investment account. Just like your money jars.

After working long hard hours at night, I also now choose to take advantage of the time saving aspects of the digital world. And it is working for me. Time is precious to me.

Different choices for different folks. That all it is. Nothing wrong with the choices of either of us and both are working well.
 
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.
Airport business will lose a days trading when WIFI is down. I always carry cash, the banks not only charge us for using our cards, the businesses that accept the card pay the bank as well! that why so many are going out of business also online shopping.
 
I think we should have the option of choice, which we’ve always had. I like to pay cash for a lot of things. I don’t like the feeling of the banks being in control of our lives with a no cash policy.
 
Whilst I am against a cashless society for a number of reasons, I feel the Government is going too far with this rubbish. When will they stop trying to run our lives. Next they will be telling you when you can take a crap.
 
It is just as inconvenient when you wank into a shop and it is cash only. I want to be able to choose either option. Sometimes I have cash in my wallet and sometimes I don't. Sometimes I want to use a card and sometimes I don't. It is all about choice, and we should have it.
 
I have a market stall in the Townsville area, and am astounded at the number of potential customers AT A MARKET who don't have cash to pay for a $5 jar of jam!! Crazy!!
 
Yes I have experienced the rejection of cash. I went into Robins kichens to purchase a lid for one of their frypans. When I went to pay for it with cash, the woman said, oh we no longer take cash for sales, only debit or credit cards.

I told her, well, that's too bad then for your company, because you've just lost a sale. With that, I left the lid on the counter, turned around and walked out.

If any company is not going to take cash, which is legal tender, then I will forgo shopping there. Simple as that.
 

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