New ‘Cash is King’ plan unveiled to protect the rights of millions of Aussies to pay with notes and coins

The Coalition has pledged to give Australians a legal right to pay with cash, unveiling a new bill that would force major retailers, restaurants, pharmacies and government agencies to accept notes and coins.

The proposal comes as the federal government moves to protect Australia’s cash network through its recently passed Cash Distribution Framework Act in August, legislation aimed at keeping cash available across the country.

It was introduced after concerns about the future of Australia’s cash transport industry, which has come under pressure as more people switch to digital payments.

Banks, retailers and ATM operators rely on cash transport and processing companies to move money around the country, as declining cash use places the industry under financial strain.

Last year, cash transport giant Armaguard required a $100million rescue package from major banks and retailers to keep operating.

In response, Labor passed the Cash Distribution Framework Act, which gives authorities new powers to oversee Australia’s cash distribution network and ensure essential services continue operating.

The legislation allows the Reserve Bank to designate a major cash distribution provider and places it under a regulatory framework overseen by the Australian Competition and Consumer Commission.

But Shadow Financial Services Minister Kevin Hogan said Labor’s reforms do not go far enough so Australians can actually use cash when they want to make a purchase.

‘Many Australians believe that because cash is legal tender it must be accepted everywhere,’ he said. 

‘The reality is that businesses can still refuse cash in many situations.’

The Coalition’s proposed Cash is King Bill would require major businesses to accept cash payments for purchases up to $2,000.

The policy would apply to large retailers including department stores, pharmacies, hardware chains, restaurants and fast-food outlets.

Commonwealth government agencies would also be required to accept cash for eligible over-the-counter payments.

Small businesses with annual turnover below $10million would be exempt, along with businesses facing genuine security concerns.

The Coalition estimates the changes would cover more than 80 per cent of face-to-face retail transactions across Australia.

Mr Hogan said the proposal would protect Australians who still rely heavily on cash.

‘Around 1.5 million Australians rely on cash for most of what they buy. But Labor’s rules leave out essential goods like medicines, clothing and hardware supplies,’ he said.

‘If you walk into a shop with a fifty-dollar note, you shouldn’t be turned away. That shouldn’t be controversial.’

He argued consumers should be free to use cash for everyday purchases.

‘If you can use cash to buy groceries, why can’t you use it to buy medicine, clothes or a meal?’ Hogan said.

The Opposition has also framed the policy as protection during natural disasters and major outages, when electronic payment systems can fail.

‘In my own community, I’ve seen what happens when the system goes down. When the floods hit the Northern Rivers, cash was the only thing that worked. That’s exactly why it needs to be protected,’ Mr Hogan said.

‘Australians should be able to choose how they pay, without being forced into a cashless economy.’

‘Cash is king, and under the Coalition we won’t see it overthrown.’