Australia Post is facing the challenge of maintaining cash flow in remote communities as bank closures become more common. CEO Paul Graham recently revealed that the national postal service is spending $4,000 per week to fly cash into the remote mining town of Coober Pedy in order to keep hard currency circulating in the community. While Australia Post is committed to providing basic banking services in towns where they are the only option, Graham acknowledged that this approach is not sustainable in the long term.
The CEO highlighted significant worker shortages in remote towns like Alice Springs and Katherine in Western Australia, making it difficult to find staff members to work in these areas. In some cases, Australia Post has resorted to billeting employees from other towns on a temporary basis. However, this poses challenges when staff members fall ill or when licensed shop owners close their businesses.
In addition to worker shortages, Australia Post is also shouldering the cost of airlifting cash into certain communities. Graham shared that in some regional towns, they are using their own funds to fly cash in and ensure these communities have access to physical currency. For instance, in Coober Pedy, the company spends approximately $4,000 per week on this service. Graham emphasized that while Australia Post is willing to support communities in need of cash, the responsibility falls on banks to work with them and ensure these services are available.
These revelations come at a time when Australia is moving towards a cashless society. The Australian Prudential Regulation Authority reported that over 400 branches and 700 ATMs were closed by banks during the 2022-23 financial year. Banks argue that the costs of operating physical branches are unsustainable, with the rise of point-of-sale transfers and online payments leading to reduced customer activity at branches.
However, there is pushback against the transition to a cashless society. A petition against the move has gained over 160,000 signatures, advocating for the right to local access to cash and banking services, as well as the freedom to choose cash as a payment method for essentials. Jason Bryce of Cash Welcome, the organization behind the petition, points out that other countries provide these rights to their citizens and believes Australia should do the same.
The issue of maintaining cash flow in remote communities is a complex one. While Australia Post is stepping in to fill the gap, CEO Paul Graham acknowledges that it is not a sustainable solution. As the country moves towards a cashless society, it is crucial for banks to consider their community responsibility and work alongside organizations like Australia Post to ensure that communities in need of cash have access to these services. Balancing the convenience of digital transactions with the need for physical currency is a challenge that Australia must address in order to maintain financial inclusivity and support remote communities.
