The Albanese Labor government is taking steps to protect the use of cash as legal tender for essential items like groceries, petrol, and pharmacy items in light of declining cash usage across the wider population. This new plan to modernize payments will also involve phasing out cheques by the middle of 2028. The government aims to mandate the use of cash for certain businesses starting in January 2026 after the next federal election.
Treasurer Jim Chalmers emphasized the importance of modernizing the payment system while ensuring that those who rely on cash are not left behind. He noted that while most Australians have transitioned to digital payments, there are still 1.5 million Australians who primarily rely on cash. The governmentâs goal is to provide options for individuals to pay with cash for essential items if they choose to do so.
Chalmers highlighted that the ability to use cash provides a sense of security, especially for essential purchases like groceries, petrol, and pharmacy items. The government is working to establish appropriate exemptions for small businesses and prioritize regional Australia in this transition.
Regarding the decline in cheque usage, Chalmers mentioned that people have had ample time to adapt as cheque use has decreased by 90% over the past decade. The treasurer emphasized the importance of ensuring that people still have the option to use cash, even as businesses increasingly shift towards digital payments.
In response to the governmentâs cash announcement, Jason Bryce from Cash Welcome welcomed the move, expressing appreciation for the governmentâs responsiveness to their concerns.
Opposition Concerns and Treasury Initiatives
Opposition Shadow Treasurer Angus Taylor raised concerns about the lack of clarity in defining âessentialâ items and businesses. He urged the government to provide more details on how the plan would work and address potential impacts on businesses.
Taylor also criticized the governmentâs handling of cost of living and inflation issues, calling for more effective economic management. He emphasized the need for concrete actions to address these challenges rather than vague promises.
Regional Banking Levy Considerations
Recent reports have indicated that the Treasury is exploring the possibility of implementing a regional bank levy to ensure banking services in rural areas. Treasurer Chalmers acknowledged the challenges posed by the decline of banking services in regional areas and stated that discussions with the financial sector are ongoing to find solutions.
The move towards digital banking, exemplified by Bankwestâs decision to become a fully digital bank by the end of 2024, has raised concerns about the closure of physical branches. In the past year, Australian banks closed a total of 424 physical branches, highlighting the shifting landscape of banking services in the country.
Please rewrite this sentence for me.
Source link
