Australia could be on the brink of a cashless revolution—but not everyone agrees on what that future should look like.
One leading economist claimed the country could eliminate notes and coins within three years.
But new figures revealed Australians were actually withdrawing more cash than ever before.
In this Article
Calls to phase out cash and tackle tax evasion
Professor Richard Holden, from the University of New South Wales, argued that phasing out cash would help stamp out tax evasion and deliver billions in extra GST revenue.
The Harvard-educated economist said the black economy was costing the government $10 billion a year and depriving workers of income tax relief.
‘I acknowledge it would need to be a transition and some people are very attached to cash, but I really think it will go the way of cheques.’
‘We could transition fully away from cash, I think it could be done in about three years or so—you'd probably start by eliminating the $100 bill and the $50 bill in a year and you work your way through.’
He added that those who used cash to dodge the system were costing honest Australians money.
‘We have very, very high income taxes and if we're leaving several billion dollars a year on the table, by letting tax cheats use cash to evade the taxes the rest of us pay, I just don't have a lot of sympathy for those people,’ he said.
Despite the decline in everyday banknote use, Treasurer Jim Chalmers announced a cash mandate starting in January 2026, which would require businesses to accept cash payments.
‘They're just playing politics,’ Prof Holden said.
‘I'm sure that's been focus grouped to death and that Jim thinks it's a political winner—that's fine, he's a politician, I'm an economist.’
With many banks shutting branches and removing ATMs, Prof Holden suggested Australia Post outlets could offer digital kiosks to help older Australians pay their bills.
‘As far as I'm aware, every town has an Australia Post outlet of some form or another,’ he said.
He dismissed privacy concerns about governments accessing bank records, saying such arguments were more about avoiding the tax office than protecting civil liberties.
‘The government can't just go and get your bank records without the appropriate legal right to do so,’ he said.
‘What are we trying to hide? What's the legitimate purpose of using cash to hide it from the ATO if it's not tax avoidance?’
Source: YouTube/Yahoo Australia
Cash infrastructure under threat as Armaguard struggles
But his call came as serious concerns were raised about Australia’s fragile cash distribution system.
Michelle McPhee, a Reserve Bank assistant governor, said the country’s near-monopoly cash transport company Armaguard was struggling to survive.
‘We saw cash use take a step level down during Covid and that created significant difficulties for those who distribute cash around the economy,’ she told the Economic Society of Australia.
She explained that servicing far-flung towns with dwindling cash demand was proving costly and difficult.
Armaguard, which controls around 90 per cent of the country’s banknote movements, recently merged with Prosegur and received a $25.5 million lifeline from banks, Coles, Woolworths, and Wesfarme
Cash use falls, but circulation hits record highs
Reserve Bank data revealed just 16 per cent of in-person transactions in 2022 were made using cash, fuelling the debate over its future.
Yet paradoxically, the amount of physical cash in circulation reached record highs, with $104.4 billion worth of banknotes currently in use and $245 million issued in just one week.
Cash withdrawals also surged, hitting $9.2 billion in June
The senior cash coalition
The statistics told a compelling story about who would be most affected by any rapid move to eliminate cash.
One in five individuals aged 65 and older still predominantly relied on cash for more than 80 per cent of their transactions.
These weren’t people clinging to outdated habits—they were Australians with legitimate concerns about digital payments.
Baby Boomers, aged 58 and above, had the highest average savings at $61,232, suggesting they had the financial means to adapt to digital payments if they chose to.
The fact that many didn’t spoke to deeper concerns about privacy, security, and simplicity.
Source: YouTube/9 News Australia
National Seniors Australia became a vocal advocate for cash accessibility, launching a ‘Keep Cash’ campaign that resonated with hundreds of thousands of older Australians.
Their concerns extended beyond mere preference—they included legitimate worries about online scams, system outages during natural disasters, and the basic right to financial privacy.
Just over one-quarter of respondents—regardless of how intensively they used cash—reported that they would experience a major inconvenience or genuine hardship if cash was hard to access or use, according to Reserve Bank research.
For a significant portion of the population, cash wasn’t just convenient—it was essential.
Did you know?
Did you know? Several other countries have already implemented cash mandates, including Spain, France, Norway and Denmark. Some US states like Massachusetts and New Jersey have similar laws. Australia wouldn’t be breaking new ground—it would be joining an international trend to protect cash access.
A separate RBA report found only 29 per cent of Australians carried no cash in 2022, meaning the majority still kept notes in their wallets.
Mr Bryce argued this proved ‘that 70 per cent of Aussies carry cash every day’.
Prof Holden, however, maintained that cash was not useful in the kinds of emergencies many thought it was.
‘There's a mass power outage: shops aren't going to be open, supermarkets, convenience stores, nobody opens their shop when the power's out,’ he said.
Disclaimer: This is a stock image used for illustrative purposes only and does not depict the actual person, item, or event described.
What happens next?
The coming months will be crucial for Australia’s cash future.
Armaguard’s funding runs until December, after which major stakeholders must decide whether to continue propping up cash infrastructure or let market forces determine its fate.
Meanwhile, Treasury is consulting on the cash mandate until 14 February 2025, with implementation planned for January 2026.
This timeline puts the government’s protective measures slightly ahead of any resolution to Armaguard’s crisis.
Professor Holden’s three-year elimination timeline seems increasingly unrealistic given political realities.
No government wants to disenfranchise 1.5 million voters, particularly when many of them are seniors who vote reliably.
The cash battleground: what you need to know
Government cash mandate for essential items starts January 2026.
Armaguard’s financial crisis threatens cash infrastructure nationwide.
18% of seniors (65+) are classified as high cash users vs 3% of under-50s.
1 in 5 seniors rely on cash for 80%+ of their transactions.
ATM numbers dropped 11% in just one year (2022–2023).
Over 25% of all Australians would face hardship if cash became difficult to access.
The more likely outcome is a gradual transition to a ‘low cash’ rather than ‘cashless’ society, with cash remaining available for essential purchases and vulnerable populations while digital payments continue to dominate everyday transactions.
What This Means For You
An economics professor argued that Australia could completely phase out cash within just three years, claiming the black economy was costing the government an estimated $10 billion a year in lost GST revenue.
Meanwhile, Armaguard—the country’s largest cash delivery company—needed a $25.5 million bailout just to stay afloat, highlighting the fragility of the system that keeps cash moving. Yet despite predictions that banknotes are on their way out, Australians withdrew a record $9.2 billion in cash this June, proving many still rely on notes and coins in their daily lives.
For older Australians, who have managed money through both change and stability, the question now is whether the nation’s future should be fully digital—or if there’s still a place for the reassurance of cash in hand.
Australia could be on the brink of a cashless society — Daily Mail reports an economist claimed cash could disappear in three years, though withdrawals are rising.
https://www.dailymail.co.uk/news/ar...tml?ns_mchannel=rss&ns_campaign=1490&ito=1490
Armaguard move set to protect cash as essential service amid looming deadline — Yahoo Finance covers Deloitte’s involvement in ensuring Armaguard can sustain cash transport across Australia.
https://au.finance.yahoo.com/news/a...-service-amid-looming-deadline-223140044.html
The king is dead? Long live the king | The future of cash — Frontier Economics explores challenges of going fully digital and notes $25.5m backing for Armaguard by major banks and retailers.
https://www.frontier-economics.com.au/the-king-is-dead-long-live-the-king-the-future-of-cash/
Cash Use and Attitudes in Australia | Bulletin – June 2023 — RBA data shows older Australians are the heaviest cash users, with 18 per cent of those over 65 classified as high users.
https://www.rba.gov.au/publications/bulletin/2023/jun/cash-use-and-attitudes-in-australia.html
Keep Cash — National Seniors Australia highlights that one in five seniors still rely on cash for more than 80 per cent of their transactions.
https://nationalseniors.com.au/resources/keep-cash
Average Savings in Australia by Age, Gender & State in 2025 — Money.com.au shows Baby Boomers have the highest average savings at $61,232, compared to lower amounts for younger generations.
https://www.money.com.au/banking/high-interest-savings-accounts/savings-statistics
Cash Use and Attitudes in Australia | Bulletin – June 2023 — RBA notes one-quarter of Australians would face major hardship if cash became difficult to access.
https://www.rba.gov.au/publications/bulletin/2023/jun/cash-use-and-attitudes-in-australia.html
Australian Cash Mandate | The Reading Room — Details on a government proposal requiring essential service providers to accept cash from 1 January 2026.
https://readingroom.money.org/australian-cash-mandate/
Australian Cash Mandate | The Reading Room — Reports that around 1.5 million Australians still use cash for more than 80 per cent of in-person payments.
https://readingroom.money.org/australian-cash-mandate/
Keep Cash — National Seniors Australia notes an 11 per cent drop in ATMs between 2022 and 2023 and argues cash helps people spend more mindfully.
https://nationalseniors.com.au/resources/keep-cash
Would you be ready to live in a completely cashless Australia within three years?
Seniors Discount Club
Latest Articles
-
The copper crime wave costing Australians their homes and livelihoods
- Started by Michelle Engbino
- Replies: 0
-
Brain scans reveal why your grandkids can't stop scrolling—and what Australian families can do
- Started by Michelle Engbino
- Replies: 0
-
-
Why diaspora communities in Australia opt for surgery in China and Taiwan
- Started by Michelle Engbino
- Replies: 0
-
.png){kind=icon}
