Treasurer Jim Chalmers has shed light on the government’s plan to keep cash alive, even as digital payments take over. He explained that for about 1.5 million Australians, cash remains essential, particularly for those in regional areas or who can’t use digital options.
“We want to make sure they’re not left behind,” Chalmers said during an interview on Sunrise. “Cash can be a lifeline and an important backup. It gives people peace of mind and security.”
To ensure businesses continue accepting cash for essential items like groceries, fuel, and medicine, the government will roll out a mandate in January 2026. Before that, consultations will be held to strike the right balance, especially considering small businesses and those who rely heavily on cash.
“We’re focused on essentials like supermarkets, pharmacies, and petrol stations,” Chalmers explained. “But we’ll also look at exemptions for small businesses and regional areas.”
While Chalmers emphasized the importance of digital payments in modernizing the financial system, he assured Australians that cash will remain part of the economy.
When asked about rising cost-of-living pressures, including mortgage stress, Chalmers highlighted ongoing discussions with bank CEOs.
“We talk frequently about how banks can support people who are struggling,” he said. “Typically, banks will try to accommodate if you reach out early. I’ll continue pushing them to help ease the pressure.”
Chalmers reiterated the government’s focus on addressing cost-of-living challenges, pointing to falling inflation, rising wages, and relief measures already in place. “We know people are still doing it tough, and everyone — banks, government, businesses — has a role to play in helping.”
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