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

The government’s long-awaited “cash mandate” legislation has been released, but one advocate warns the proposed rules would “green light the cashless society”.

Treasurer Jim Chalmers promised to introduce legislation protecting cash payments, but on Friday the draft proposal revealed businesses would have access to multiple exemptions.

For one, the mandate would exempt all small businesses with turnovers below $10m from having to accept cash.

Further, the mandate would only apply to large fuel and grocery retailers.

Financial Services Minister Daniel Mulino said the mandate and its exemptions would deliver a “balanced, practical and sensible step to support cash users and give consideration to businesses”.

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

“Importantly, consumers already have the option to pay their bills, including utilities, phone bills and council rates, in cash at their local Australia Post outlet through Post Billpay on the current terms of this service.”

But cash advocate Jason Bryce, speaking with 2GB’s Ben Fordham on Tuesday, slammed the proposed rules as “garbage”.

“This just greenlights the cashless society,” he said.

“This cash mandate is garbage. This cash mandate will herald the cashless society in Australia.”

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

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

“It doesn’t apply to any other big business except large supermarkets and large petrol stations.”

There are also protections in place for the supermarkets and petrol stations, limiting how far they need to go to support cash payments.

Payments are limited to $500, meaning big businesses could refuse to accept cash for purchases above that figure.

And cash payment points, for example check-out terminals at a supermarket, only need to be proportionate to overall consumer demand for making cash payments.

“In determining whether the consumer has a reasonable opportunity for the purposes of subsection (paying with cash), regard is to be had to whether the number (which must be at least one) of cash payment points operating at the retail site when the payment is to be made is reasonable and proportionate,” the draft rules state.

An exemption can also be granted to big businesses if it is found that the “costs associated with the retailer complying” with the cash mandate poses a “significant risk” to the ongoing feasibility of the supermarket business carried on by the retailer.

The proposed mandate is now open for public submissions.

If approved, it is expected the new rules will come into effect in January next year.

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

“This is really saying any shop can reject cash,” he said.