Coalition Unveils 'Cash is King' Bill to Safeguard Payment Rights

A new bill, dubbed the 'Cash is King' plan, has been introduced by the Coalition to legally protect Australians' right to pay with cash. The proposed legislation would mandate that major retailers, restaurants, pharmacies, and government agencies accept notes and coins for transactions.

This initiative follows the federal government's passage of the Cash Distribution Framework Act in August, which aims to maintain the availability of cash across the country. The earlier legislation was prompted by concerns over the financial stability of Australia's cash transport industry, which has faced increasing pressure due to a shift towards digital payments.

Companies responsible for transporting and processing cash, essential for banks, retailers, and ATM operators, have experienced financial strain as cash usage declines. Last year, the significant cash transport firm Armaguard required a $100 million rescue package from major banks and retailers to continue its operations.

While the Labor government passed the Cash Distribution Framework Act to grant authorities oversight powers and ensure the continued operation of essential cash services, Shadow Financial Services Minister Kevin Hogan argued that these reforms do not go far enough. He stated that despite cash being legal tender, many businesses can still refuse it in various situations.

The Coalition's proposed bill would require large businesses, including department stores, pharmacies, hardware chains, and food service establishments, to accept cash payments for purchases up to $2,000. Commonwealth government agencies would also be compelled to accept cash for eligible over-the-counter payments. Small businesses with an annual turnover under $10 million and those with documented security concerns would be exempt.

The Coalition estimates these changes would impact over 80 percent of face-to-face retail transactions nationwide. Hogan highlighted that approximately 1.5 million Australians rely on cash for most of their purchases, and current regulations leave essential items like medicines, clothing, and hardware supplies potentially excluded from cash transactions.

"If you walk into a shop with a fifty-dollar note, you shouldn't be turned away. That shouldn't be controversial," Hogan stated, emphasizing that consumers should have the freedom to use cash for everyday purchases. He further noted the importance of cash as a reliable payment method during natural disasters and power outages, referencing instances where cash was the only viable option during floods.

The 'Cash is King' bill is framed as a measure to protect consumer choice and prevent a forced transition to a cashless economy. "Cash is king, and under the Coalition we won't see it overthrown," Hogan concluded.