National Seniors Australia (NSA) is reminding the Federal Treasurer that time is running out for the government to legislate the promised cash mandate due 1 January 2026.
“Bringing legislation into parliament and processing it through to law takes time and with just three sitting weeks between now and Christmas, the pressure is on the government to keep its promise,” NSA CEO Chris Grice said.
“As a peak consumer advocacy body leading the KEEP CASH campaign, NSA, together with our 273,000 community members, welcomed the opportunity to contribute to the government’s mandating cash acceptance consultation back in February.
“Seniors, like most people, value the convenience of card payments; but as a key part of the payments and financial system, cash must be accessible and accepted.
“As detailed in our submission, we need to keep cash for a range of reasons including reliability during outages; privacy, security, and trust; and budgeting.
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"Cash can be easier for people living with a disability to use; it allows for small payments to children, grandchildren as well as charities; and it negates bank charges and card charges."
While NSA congratulated the government for taking this step to ensure cash remains accepted, they were disappointed by the extent of the potential limitations.
Exactly what items are deemed ‘essential’ goods and services are restricted.
Details such as how the mandate will operate in practice, how it will be enforced and communicated, supports for small businesses, and impacts in regional areas still need to be determined.
“We’re also disappointed that despite government setting a clear time frame for updates, it’s October and we have heard nothing," Mr Grice said.
“NSA accepts the need for the government to get the mandate and processes around it right, but we can’t understand why the government hasn’t delivered on its promise to provide more information about the mandate, its progress, and how it will work.”
Independent MP for Indi Helen Haines agreed the federal government should provide an update on the progress of the promised cash mandate.
"Access to cash is essential for regional communities, where connectivity can be unreliable, many people still rely on cash for everyday transactions." Dr Haines said.
"Older people in particular need confidence they won’t be left behind as digital payments expand and in-person banking services become less reliable.
"The government committed to implement a cash mandate by January 2026 - just three months from now.
"The public deserves an update on whether this timeline will be met."
A Treasury Department spokesperson said the federal government understands the important role cash plays in our payments system and supports Australians having continued access to cash.
"The government is actively considering community feedback on a cash acceptance mandate, ahead of it commencing on 1 January 2026," the spokeperson said.
As part of the treasury consultation, it was detailed:
• Consultation on the proposed mandate would occur in Q4 of 2024;
• Proposed policy design for the mandate would be announced in Q1 of 2025
• Exposure draft legislation would be released Q3 of 2025;
• Cash mandate legislation would be put to Parliament in Q4 of 2025;
• The mandate would commence from 1 January 2026.
