A government mandate will require businesses all around Australia to take cash from consumers for necessities like food.
More than 81% of inperson payments made by the 1.3 million Australians are made in cash.
According to Treasurer Jim Chalmers, the percentage of companies that accept cash has decreased from 94 percent before to the Covid19 outbreak to approximately 91% now.
According to Chalmers, there would be carve-outs for small businesses and an emphasis on necessities sold at establishments like pharmacies, supermarkets, and gas stations.
He told ABC TV on Monday, "Even as we modernize the payment system, we are making cash a continual element of our economy."
That is because we recognize that money is a lifeline for many people. It serves as a fallback. It provides people with comfort and security.
Before the year ends, Treasury will start consulting on whether companies that provide necessary goods and services should be subject to the mandate.
In addition to the impact on small enterprises, the consultation will take into account the needs of those who depend on cash, such as those who live in rural areas or are unable to utilize digital payments.
The mandate's final specifics, which are scheduled to take effect in January 2026, will be revealed in 2025.
Under a Cheques Transition Plan, the phase-out of checks will also start, giving businesses and consumers until 2029 to switch to other payment options.
By June 2028, checks will no longer be issued, and by September 2029, they will no longer be accepted.
Over the last ten years, the use of checks has decreased by 90%, and many banks and financial institutions are no longer issuing checks to new clients.
According to Chalmers, the revisions placed greater emphasis on regional Australia.
He responded that his department was "trying to retain a decent level of access and services for Australians who live in the bush" when asked about a suggestion for a bank tax to encourage branches to remain operating in remote Australia.
"Many Australians have difficulties as a result of the deterioration of banking services in the regions," he stated.
"People should not be surprised to learn that we try to find some solutions here by interacting with the banks and others on a fairly regular basis."
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