UPDATE: Serious flaws have emerged in the Federal Government’s draft cash mandate regulations, raising urgent concerns for regional Australians. Prime Minister Anthony Albanese faces backlash for ignoring key Senate recommendations aimed at addressing the banking crisis affecting rural communities.
The Senate inquiry identified two critical recommendations: protecting cash access and reinstating government banking services. However, a Treasury official admitted that these recommendations were treated as mere “initiatives” instead of actionable policies since the inquiry concluded in May 2024. The government’s proposed cash mandate is now at the center of controversy.
While the cash mandate aims to ensure businesses in bankless towns can accept cash, the regulations may actually allow supermarkets and fuel outlets to refuse cash. This is possible through “exceptional circumstances” exemptions, which could be granted if businesses encounter difficulties in cash transactions. Such exemptions would simplify the process for businesses to deny cash, undermining the original intent of the regulation.
David Inall, CEO of MGA Independent Businesses Australia, emphasized the challenges of managing cash in regional areas, where limited banking services exacerbate operational difficulties. “Security services that transport cash are expensive, and in many instances, are no longer operating,” Inall stated. This highlights the dire situation faced by businesses in rural locations.
Critically, Andrew Irvine, NAB’s CEO, confirmed that the costs associated with cash logistics have driven banks away from regional towns. “The cost of cash is real,” Irvine explained, shedding light on the financial burdens that impact rural communities. With major banks like NAB, ANZ, and Westpac withdrawing services, many towns are left without access to essential banking facilities.
As of now, the cash mandate will only apply to supermarkets and fuel outlets, with small businesses exempt based on income. Cash payments will be capped at $500, further limiting the ability of consumers to transact freely. Notably, this exemption means that communities, including Aboriginal populations in Far North Queensland, will not be guaranteed the right to pay for groceries in cash.
The Senate report emphasized the importance of cash for Indigenous communities, raising alarms about the potential consequences of the cash mandate. Critics argue that the regulations could accelerate the decline of cash usage instead of supporting its continuation.
With a deadline approaching, Treasury has invited public submissions on the draft legislation, but Assistant Treasurer Daniel Mulino stated that only industry feedback will be considered. This has led to concerns that the voices of those directly affected may be overlooked.
The deadline for feedback is October 31, 2025, intensifying the urgency for stakeholders to voice their opinions. Alarmingly, the government’s response to the Senate report on regional bank closures is already 430 days overdue as of October 26, 2025.
As the situation develops, many are questioning the future of cash transactions in Australia. The Albanese Government must reconsider the recommendations from the Senate inquiry, including the establishment of a publicly owned bank, to ensure that all Australians retain their right to conduct transactions in cash.
Stay tuned for more updates as this story unfolds. The implications of these regulations could significantly alter the landscape of banking and cash usage in regional Australia.
