Introduction:
A new bill in Australia aims to ensure that businesses continue accepting cash payments, despite the increasing popularity of digital transactions. The bill, called the Keeping Cash Transactions in Australia Bill 2024, was introduced by independent federal Members Andrew Gee and Bob Katter. It seeks to give Australians the choice of how they spend their money and prevent rural communities from being disadvantaged by the decline of cash-based transactions.
The Bill’s Requirements:
Under the proposed legislation, businesses operating in face-to-face settings would be required to offer and accept cash payments for transactions below $10,000. Failure to comply with this requirement could result in civil penalties of up to $5,000 for individuals and $25,000 for companies. However, the law would not apply if accepting cash would pose a security risk, violate another law, or go against government health advice.
The Issue of Bank Surcharges:
One of the motivations behind the bill is the significant surcharges that Australians face when paying by card. According to the Reserve Bank of Australia, Australians are losing $960.26 million per year due to bank surcharges. Many businesses also dislike these fees. Andrew Gee, one of the bill’s proponents, highlighted that these surcharges act as an additional tax on consumers for simply using their card for transactions.
The Importance of Cash:
The bill’s supporters argue that cash is still vital, particularly for senior Australians who find online account management stressful and confusing. Additionally, cash provides a reliable means of exchange during power and internet outages that are more common in regional and rural areas. The lack of reliable internet access in these regions makes cash a dependable alternative that does not rely on electricity or internet connectivity. Furthermore, some individuals value privacy and do not want corporations to have access to their purchasing information.
Concerns about Centralization of Power:
Bob Katter, another proponent of the bill, expressed concerns about the centralization of power that a cashless society would bring. He argued that a shift away from cash would give banks and their CEOs control over people’s ability to make purchases. This centralization of power, he warned, poses a direct threat to individual freedoms. Katter also highlighted that a cashless society would exacerbate social inequalities and marginalize vulnerable groups, such as the elderly, those in remote areas, and individuals without access to or skills in using digital platforms.
Arguments for a Cashless Society:
While the bill’s proponents argue for the importance of cash, some argue that the move towards a cashless society is inevitable. Many countries, including Sweden, Finland, the UK, China, Australia, Japan, and Singapore, are already at the forefront of digital payments. Angel Zhong, an associate professor of finance at RMIT University, pointed out that Australia has embraced digital payments at an astonishing speed, surpassing countries like the United States and European nations. She emphasized the need for government legislation to combat fraudulent activities, money laundering, promote fair competition, and protect data.
Benefits of a Cashless Society:
Advocates for a cashless society argue that it offers enhanced convenience, crime prevention, and stability. Swiping a credit card or using digital payment methods makes purchasing quick and easy for consumers. For retailers, it reduces the need to handle and deposit physical cash every day and simplifies bookkeeping since electronic transactions can seamlessly enter computer systems.
Conclusion:
The proposed bill in Australia seeks to ensure that businesses continue accepting cash payments despite the increasing popularity of digital transactions. Proponents argue that cash provides choice, privacy, and reliability, particularly for vulnerable groups and those in remote areas. However, some argue that a cashless society is inevitable and offers benefits such as convenience and crime prevention. The debate around the role of cash in a digital age continues, highlighting the importance of finding a balance between technological advancements and individual needs and preferences.
