Aussie states with the most bank branch and ATM closures revealed as government releases draft cash mandate plan

Fresh data has turned the spotlight on Australia’s shift towards digital banking, with hundreds of branches and ATMs disappearing from sites across the country.

It comes as the federal government released a draft of its cash mandate regulations, saying it will ensure people who rely on physical currency “can still use it for essential purchases”.

The shutters were brought down on 155 bank branches in the 12 months to June, and more than 1500 in the last five years, new figures from the Australian Prudential Regulation Authority show.

Australia’s biggest bank, the Commonwealth Bank, closed 49 sites last year. Westpac shut 25, NAB a further three, and ANZ wound up 21, meaning it has halved its network over the last five years.

NSW had the most closures with 44, but the percentage of shutdowns was similar across states, except in WA which dissolved a country-high 13 per cent of its branches.

“Bank branches are continuing to disappear as Australians and banks continue to go digital,” Canstar data insights director Sally Tindall said.

The majority of last year’s branch closures (126) were within Australia’s major cities.

A decline in shutdowns in remote areas — five were shut last year compared to eight the year before — is partly due to the big four committing to keep regional sites open for two more years.

“There’s still a huge question mark over what the longer-term future of these branches will look like,” Tindall said.

Those wanting to deposit or withdraw cash at ATMs also have fewer options, with 333 terminals closed in the last financial year.

Close to 4500 sites have closed in the last five years, almost half of all Australia’s locations.

Most of last year’s closures were in NSW but WA again had the largest percentage of its ATM network sliced away (13 per cent).

Australia Post’s Bank@Post service — which allows Commonwealth Bank, NAB and Westpac customers to make deposits and withdrawals — also lost 62 sites last year.

“Bank@Post continues to play a vital role in filling the gaps left by the branch and ATM closures,” Tindall said.

“For some smaller towns, the local post office might be the only place where people can still deposit cash, take out money or pay bills.”

Assistant Treasurer and Financial Services Minister Daniel Mulino said the government is working with regulators, industry and communities to “ensure our regions have access to sustainable banking services over the long term”.

Cash mandate takes step forward

Tindall said there is little doubt an increasing number of customers are happy to “tap, click, transfer and apply online instead of queueing at a branch”, but highlighted the challenge for banks and regulators is to “make sure innovation doesn’t come at the expense of inclusion”.

On Friday, the Albanese government released the highly-anticipated draft of its cash mandate regulations for essential purchases.

“We’re mandating cash acceptance for essential purchases, starting with the groceries and fuel sectors, so people who rely on cash don’t get left behind,” Mulino told 7NEWS.com.au.

The draft includes exemptions for small businesses which find it harder to deal with physical currency, “minimising the costs and risks” to them.

“This is a balanced, practical, and sensible step to support cash users and give consideration to businesses,” Mulino said in a statement calling for feedback on the plan.

“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.”

National Seniors Australia have been vocal advocates for the retention of coins and notes — even launching a ‘Keep Cash’ campaign — and said it was pleased with the draft regulations.

“We hope and expect the Treasurer and Assistant Treasurer will ensure a safe passage of these proposed regulations through to implementation to ensure people who rely on cash can still use this valid form of currency for essential purposes,” chief executive Chris Grice told 7NEWS.com.au.

“Older Australians, and others, are relying on their commitment.”

Submissions on the draft regulations close at the end of the month.

The government had planned for the mandate to commence from January 1, 2026.