‘Loopholes’: Cash advocates slam federal government’s proposed cash mandate legislation

The government’s long-awaited “cash mandate” legislation has been published, but an advocate warns the proposed rules will “give the green light to a cashless society”.

Finance Minister Jim Chalmers has promised to introduce legislation protecting cash payments, but draft proposals on Friday revealed businesses would have access to multiple exemptions.

First of all, this order will exempt all small businesses with a turnover of less than $10 million from accepting cash.

Additionally, this authority will only apply to large fuel and grocery retailers.

Financial Services Minister Daniel Mulino said the powers and exemptions would provide “a balanced, practical and sensible step to support cash users and take into account businesses”.

“The mandate will apply to fuel and grocery retailers as this best meets consumer expectations to be able to pay cash for essential goods while minimizing costs and risks to businesses,” he said.

“Importantly, consumers currently have the option to pay their bills, including utilities, phone bills and council charges, with cash at their local Australia Post outlet via Post Billpay on the current terms of this service.”

But speaking to 2GB’s Ben Fordham on Tuesday, cash advocate Jason Bryce described the proposed rules as “rubbish”.

“This just gives the green light to a cashless society,” he said.

“This cash mandate is rubbish. This cash mandate will herald a cashless society in Australia.”

Mr Bryce, who is running the Cash Welcome campaign, said the mandate was “so full of loopholes it’s ridiculous”.

“This doesn’t apply to any small business,” he said.

“This doesn’t apply to any large business other than large supermarkets and large petrol stations.”

There are also protections in place for supermarkets and petrol stations that limit how far they must go to support cash payments.

Payments are capped at $500, which means large businesses may refuse to accept cash for purchases above that figure.

And cash payment points, such as checkout terminals in a supermarket, need to be commensurate with the overall consumer demand for cash-only payments.

“In determining whether the consumer has a reasonable opportunity for the purposes of subsection (payment by cash), consideration must be given to whether the number of cash payment points (which must be at least one) operating on the retail site at the time of payment is reasonable and proportionate,” the draft rules say.

Exemptions may also be granted to large businesses if it is determined that “the costs associated with the retailer’s compliance with the cash requirement” pose a “significant risk” to the ongoing feasibility of the supermarket business operated by the retailer.

The proposed mandate is currently open for public submission.

If approved, the new rules are expected to come into force in January next year.

Mr Bryce said the mandate was “really the opposite” of its title.

“This actually shows that any store can refuse cash,” he said.