Andrew Gee (Calare, Independent) Share this | Link to this | Hansard source

I move:

That so much of the standing and sessional orders be suspended as would prevent the following from occurring immediately:

(1) the Member for Calare introducing the Keeping Cash Transactions in Australia Bill; and

(2) debate on the second reading of the bill proceeding for a period of no longer than one hour, after which any questions required to complete passage of the bill then being put without delay.

Since I introduced the Keeping Cash Transactions Bill to this House, I have been overwhelmed with the response not only from around the electorate of Calare but also from around our nation. The response has been so positive and so forceful because people are worried that cash is going to be phased out. This groundbreaking legislation preserves the use of cash in our national economy. It does this by legislating that businesses operating in face-to-face settings must offer to accept and, crucially, must accept cash payments for transactions that do not exceed $10,000. The bill provides for maximum civil penalties of $5,000 for individuals and $25,000 for companies—and it should be noted that they are civil penalties as opposed to criminal penalties. The bill also provides some important and practical exemptions to these requirements. They include that offering to accept cash would pose a reasonable security risk; that it would be contrary to another law of the Commonwealth or a law of a state or territory; that it would be contrary to the Commonwealth, state or territory health advice such as advice provided during a pandemic; and that cash in the form of change is needed but not readily available.

It defies belief that cash can be legal tender in this country but businesses are not obliged to accept cash for transactions. All they have to do is make it known to a customer that cash is not accepted and they don't have to accept it. This is causing a huge amount of anxiety and grief in our communities, particularly our country communities. Many senior Australians do not want to use cards for their transactions. The Reserve Bank of Australia has found that Australians over the age of 65 are the heaviest users of cash. To many older Australians, cash is not just a convenience; it's a lifeline. In these times of economic uncertainty and rising costs, cash is actually an essential tool for managing finances and sticking to a budget.

Many Australians find managing accounts and cards online to be a very stressful experience, and they find it confusing. Many Australians, particularly older Australians, don't want to use online banking or online accounts. I should point out, coming from a rural and regional area, that cash is often used in rural areas by individuals who don't have ready access to banking services. Many constituents in the Calare electorate are also worried that, if they are forced to switch to cards, they will face additional fees in the form of bank surcharges—and that is a very good point. Many Australians are now waking up to the fact that banks and financial institutions charge merchant fees for card transactions which can then be passed on to consumers. It's an insidious tax that is added to transactions just by tapping a card. It's been estimated that Australians are losing more than a billion dollars a year in surcharges when they pay by card and not by cash.

I've had feedback from local businesses about my Keeping Cash Transactions in Australia Bill. Many businesses actually want to keep cash as well; they don't want to switch to being solely digital. But, like many in our community, they are worried there may be an agenda either by governments or by large corporations to phase cash out.

In country areas, we also need to consider the practicalities of internet connectivity. In many regional and rural areas reliable internet access does not exist, and cash remains a dependable means of exchange that does not rely on electricity or internet access. The bottom line is that cash transactions are unaffected by digital failures. During natural disasters like fires or floods, connectivity can be disrupted for many days—sometimes longer—rendering electronic payments unusable.

As I've said, many Australians prefer cash as a means of managing their budget so they can physically see the money and it can be allocated to different expenses. I ask you: how can we teach our children about the value of money and budgeting if they don't actually know what it is? Other Australians worry about privacy and the risk of fraud associated with using cards. Many Australians have been victims of fraud and unauthorised transactions relating to cards and accounts linked to them. Privacy is another reason some Australians prefer to use cash over cards. And some people simply don't like or want corporations knowing every single thing they buy. It should be their choice, and they should have the right to use cash if they want to.

This bill is not about imposing burdens and regulations on businesses; it's about striking a balance between innovation and inclusivity and preserving the essence of choice in our financial transactions and in our economy. It's about the freedom of Australians to choose how they will pay for their transactions.

I note that the government has responded to my Keeping Cash Transactions in Australia Bill by stating that there is a plan to make cash transactions compulsory for essential services. I accept the Treasurer and the member for Fenner have worked on this with the best will in the world, but unfortunately I don't think it is the approach that most in our communities would support. I think, speaking frankly, it's a second-best approach that acknowledges that the community wants action to keep cash, but I don't think it will be effective. I don't think it will stop businesses phasing out the use of cash. I don't think it will keep cash king in Australia. I think it will only end up applying to big businesses and, while it may force the supermarket giants and big fuel companies to keep cash, it won't go much further.

I think Australians around our nation who still want to use cash for everyday transactions will be disappointed by the government's response to this issue. In country areas there are many people who don't buy their food and groceries from major supermarket chains, and they use cash to buy a whole range of goods and services which won't be caught by the government's so-called mandate. What the government is proposing simply is not strong enough. If the government is serious about keeping cash in Australia, it should be backing my bill. That's why this bill needs to be discussed and debated in this House and passed as a matter of urgency. Australians should have the confidence to carry cash in their wallets knowing that they can use their legal tender to make a purchase anywhere at any time

As I've said, there are many people in our community who are crying out for action on this, and they haven't received it from this parliament. That's what my bill remedies. I would urge all members to support this bill. I think that this bill is vital to protect the right of Australians to choose how they will pay for their transactions. That's not a choice that should be made for them by financial institutions or businesses. So I commend this motion to the House and I urge Australians all over our great nation to get behind this bill and lobby their members of parliament to support this bill to preserve the use of cash in our society and in our economy. Many Australians are feeling marginalised by the move to a digital economy, they feel that they are being left behind and they feel that their voices are not being heard. They want to keep cash king in Australia. So I would urge all members to back this motion and keep cash king in Australia.

Ian Goodenough (Moore, Liberal Party) Share this | Link to this | Hansard source

Is the motion seconded?

Dai Le (Fowler, Independent) Share this | Link to this | Hansard source

I second the motion. I'd like to thank the member for Calare for introducing the Keeping Cash Transactions in Australia Bill 2024 which we know highlights the fundamental right that many take for granted, and that's the right to choose how we pay for goods and services. I represent one of the most multicultural electorates in the country in the electorate of Fowler. It's home to hardworking families, small businesses and elderly residents who rely on cash for their daily transactions. Walk into any grocery store or restaurant in my area and you'll see signs saying 'cash only'. Cash isn't just a convenience; it's essential to our local economy.

While I understand the shift towards digital payments, we cannot ignore the fact that many in our community still depend on cash. Not everyone has access to digital banking and not everyone is comfortable using it. Whether they are seniors who have used cash all their lives, small-business owners managing their costs or families sending money overseas, cash plays a crucial role in their daily lives. The importance of cash extends beyond convenience. It is also a matter of safety, privacy and financial inclusion. Consider those escaping domestic violence. For them, cash can be a lifeline, allowing them to purchase essentials without fear of financial surveillance by their abuser. Carers of individuals with intellectual disabilities have also shared with me their struggles when their loved ones cannot navigate online banking. For these families, cash is the only way to ensure independence and dignity in managing their finances. This bill does not force businesses to accept cash for every transaction; it simply ensures that cash remains a valid option for purchases up to $10,000. Businesses remain free to set their own policies for larger transactions. This is a reasonable, balanced approach that acknowledges both consumer rights and business realities. As it's called, the bill is about respect—respect for diverse communities, different traditions and the right to privacy. Cash payments provide anonymity, allowing Australians to donation to charities, support small businesses and make personal purchases without unnecessary tracking or oversight.

As we move further into a digital age, we must not leave behind those who are not part of the online economy. Excluding cash from transactions risks isolating vulnerable groups—the elderly, people with disabilities and those in difficult financial or personal circumstances. We must ensure that no-one is forced into a system they do not trust or understand. In Fowler, we are a community built on diversity, resilience and mutual support. The Keeping Cash Transactions in Australia Bill 2024 is about protecting the right of all Australians, regardless of background, age or financial situation, to participate fully in our economy without fear of exclusion.

I think the bill is about choice, it's about fairness and it's about ensuring that our economy works for everyone. I remember when the member for Calare introduced the bill last year and I supported that and spoke on it. My community, often when there are bills debated in here, do not really engage that much. But, for keeping cash in the economy, I was inundated with people emailing me, contacting me, messaging me, saying, 'This is such an important bill,' and, 'Please fight to ensure that cash is still kept in our economy.' I will ensure that I will fight alongside the member for Calare and those members in the House who realise—who have to realise—that, I'm sure, people in their electorate are still finding that cash is a currency that needs to be retained and not everything has to be digital. We are definitely going to exclude people if we just move everything over to digital. So I urge all members to support this in the interests of freedom, security and inclusion for every Australian.

Andrew Leigh (Fenner, Australian Labor Party, Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

At the outset, I'd like to acknowledge the hard work that the member for Calare has done, not only on this bill but on a whole range of issues through his career. He served with dignity in the New South Wales state parliament, and then in the federal parliament since 2016. He stood up for veterans, making the case to his own party that they needed to deal with the backlog in veterans' claims, and he has taken a principled stand to move to the crossbench. I haven't heard any members of the National Party in here with the passion, dedication and focus on the issue of cash that the member for Calare brings to the debate, and the government acknowledges his important contribution. The Treasurer's office has been pleased to discuss the issue with the member for Calare on 11 occasions since June of last year and welcomes his thoughtful engagement with it. We've seen a significant change in Australians' spending patterns over the course of the last couple of decades. As the government's consultation paper on the cash mandate makes clear, in 2007, the Reserve Bank estimated that about three-quarters of retail transactions were conducted by cash. In 2022 that number was down to 13 per cent. That's why, on 18 November last year, the Treasurer and the Assistant Treasurer announced a cash mandate for essential services which would ensure an ongoing place for cash in society.

Right now, 94 per cent of businesses accept cash. We know that the risk of cash not being accepted looms large for particular groups of vulnerable Australians. Some of those have been mentioned in this debate: older Australians, migrants, lower income Australians and the unbanked. These are Labor's people. These are the people who typically suffer when the coalition is in office and who Labor has fought to look after in every budget we've brought down since we've come to office. There are around 1.5 million Australians for whom cash makes up over four-fifths of their retail transactions. For them, it's more than a payment method; it is a lifeline.

But cash is also an important backup in instances of natural disasters. It is a form of financial system resilience. The government's consultation paper quotes numbers from the Reserve Bank around the frequency of such outages. They have occurred hundreds or, in some categories of outage, thousands of times per year. While the system has a resiliency rate of over 99 per cent, those outages, when they occur, can be extremely damaging. We've seen, in the instance of floods and fires, the online payment systems struggle to keep pace. It is therefore critical that cash is available.

So the government has announced a mandate to ensure that Australians can continue to pay cash for essential items if they want to, while providing appropriate exemptions for small business. That announcement has been well received by community groups, by the business community and by individuals who prefer to use cash. Cash Welcome campaign spokesperson Jason Bryce said:

This is exactly what we have been asking for.

Whether it's at the supermarket or filling up at the petrol station, when Australians are paying for things they need they will have the comfort of knowing that they can pay in cash.

Labor's targeted approach balances the needs of the community with the impact on business. We want to avoid putting extra pressure on small businesses through big fines, particularly at a time when they're doing it tough.

We are consulting on exactly what the definition of 'essential services' would be. The consultation paper sets out a proposal that essential goods and services would include: most bread and cereal products; meat; seafood; milk and cheese; fruit and vegetables; tea; coffee; children's clothing; utilities, including water, sewerage, electricity and gas; child care; cleaning and maintenance products; personal care products; medicines; fuels; spare parts; car maintenance and repair services; postal services; pet products; veterinary services; preschool; primary and secondary education; and compulsory insurance. The government recognises the importance of cash being available in those categories.

A cash mandate isn't unusual. A range of US states have them in place, including Colorado, Massachusetts and New York, as do a range of countries, including Austria, Denmark, Ireland, New Zealand, Norway and Sweden.

There is also a pleasure in using cash. As the assistant minister responsible for the Royal Australian Mint, I can't help noting that the Mint is the biggest manufacturing enterprise here in the ACT, churning out a range of fabulous coins that Australians can enjoy. The Bluey Dollarbuck, the Donation Dollar, the Year of the Snake lunar coin, the tooth fairy coin and the desert life series of coins are among the wonderful coins churned out by the Royal Australian Mint, encouraging Australians to continue to reflect on our culture and our history while paying in cash.

The government has also been concerned about securing regional banking services, because, if you don't have regional banking services, it can be hard to get hold of that essential cash that the member for Calare has so rightly talked about in this debate today.

This week the Treasurer, the Assistant Treasurer and the Minister for Communications have announced that they have secured from the major banks a moratorium on bank branch closures for 2½ years. That involves the National Australia Bank committing to a new moratorium on regional branch closures and the Commonwealth Bank and Westpac extending their existing moratoriums, alongside the conditions imposed by the government on the ANZ and Suncorp, ensuring no regional branch closures by those banks before 31 July 2027. This is important because, since 2017, 36 per cent of bank branches in regional Australia have closed. The government is stepping up to arrest the decline in regional banking services, and we've asked the banking sector to increase its commitment to and investment in regional banking through the new Bank@Post arrangements with Australia Post.

Following discussions with the government and Australia Post, the Commonwealth Bank, NAB and Westpac have all reached in-principle Bank@Post agreements, and ANZ has agreed key terms on which it will join the service. That shores up the financial outlook for Bank@Post and provides greater certainty and choice to banking customers, particularly in rural and regional areas. The government also welcomes the decision by Macquarie and HSBC to start negotiations with Australia Post on Bank@Post services. The government will continue to work with regulators, industry and the community to ensure that our regions have access to fit-for-purpose and sustainable banking services over the long term.

The Albanese government is standing up for the regions and standing up for vulnerable Australians on the issue of cash. The government's consultation paper is available on the Treasury website. Submissions are open until this Friday—Valentine's Day. So, for those listening to parliament who are wondering what they will be doing on Valentine's Day, well, penning a submission to the government's cash mandate paper is an option for how you can spend your Valentine's Day!

The issue of cash acceptance is one of great importance to the government. The government wants to get this right. We intend to have that mandate in place from the beginning of next year. Again, I want to thank the member for Calare for his thoughtful engagement on this and many other issues of public policy. The parliament is better for his energy, for his activism and for his focus on issues that are so often neglected by the National Party, which says that it looks after regional Australia but too often turns its back on the bush.

Milton Dick (Speaker) Share this | Link to this | Hansard source

The question before the House is the motion be agreed to.