A new requirement that Australian fuel and grocery retailers accept a maximum of $500 cash for essential items like groceries and fuel has been welcomed by an advocacy group for older people.
COTA Australia, an advocacy organisation for older people, welcomed the new regulations and called for the government to do more to deliver real equity and protection for consumers.
Advocacy group CEO Patricia Sparrow said measures to modernise payment and include more consumers were crucial.
“[Surcharges for using cash] disproportionately affect older people and those on low incomes — [we want them] not penalised for their payment choice,” Sparrow said, noting that two people aged 65 and over regularly shopped with cash.
“For many older Australians, cash isn’t a convenience — it’s essential. It gives people control over their money, helps them avoid extra fees, and provides peace of mind around privacy and security.
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“The increasing refusal by some businesses to accept cash has created unnecessary barriers for people simply trying to pay for essentials. No one should be turned away or penalised for wanting to pay for groceries or fuel with legal tender.”
Sparrow also noted the mandate, which in its current form represented a “strong start”, should include a ban on any surcharge for using cash.
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The government should also consider eventually phasing in the mandate to apply to more businesses, she added.
Some exemptions to the mandatory cash acceptance regime will apply to SMEs with an aggregate turnover of less than $10 million. Other small businesses that choose to share a trademark with a larger retailer will be subject to the regime.
At the weekend, Treasurer Jim Chalmers confirmed the mandate would come into effect from January 1.
“Consumers also already have the option to pay their bills, including utilities, phone bills, and council rates, in cash at their local Australia Post outlet through Post Billpay on the current terms of this service,” Chalmers said.
“Billpay is available at post offices across Australia and is relied on by businesses and government agencies, including utility providers and government entities across local, state, and Commonwealth levels.”
COTA Australia has also underscored the importance of reviewing the regulations in three years’ time, with an assessment of whether the mandate has worked as planned and what more is needed to protect the use of cash.
“If cash acceptance is going to work in practice, it needs to match how people actually live, shop, and pay,” Sparrow said.
“Technology will keep changing, but fairness and inclusion have to keep pace with it.”
This article was first published by The Mandarin.
