UPDATE: Fatal flaws in the Federal Government’s draft cash mandate regulations have been uncovered, raising urgent concerns for regional Australians. Prime Minister Anthony Albanese faces backlash for ignoring key Senate recommendations aimed at addressing the banking crisis in rural areas.
New reports confirm that the Government’s approach to cash access—including the controversial cash mandate—could disproportionately impact businesses in bankless towns. Authorities have been warned that without restoring banking services, many businesses may qualify for exemptions allowing them to refuse cash payments outright.
The Senate inquiry into regional bank closures emphasized protecting cash access and urged the re-establishment of government banking services. However, a Treasury official admitted that the inquiry’s findings have only partially influenced new initiatives, with the cash mandate being one of those initiatives.
Under current proposals, only supermarkets and fuel outlets will be mandated to accept cash, while small businesses remain exempt based on income. This could leave communities, particularly Aboriginal communities in Far North Queensland, without the right to pay for essential goods with cash.
The situation is dire, especially for regions like Queenstown, Tasmania, where the closure of the last local bank has created significant barriers to cash access. David Inall, CEO of MGA Independent Businesses Australia, highlighted that managing cash in rural areas is fraught with challenges, exacerbated by the lack of banking facilities.
“Security services that transport cash are expensive, and in many instances, are no longer operating,” said Inall, stressing the complexities faced by rural businesses.
The NAB chief executive, Andrew Irvine, recently pointed out that the logistics of handling cash in vast rural areas come with substantial costs, questioning who bears these expenses.
With October 31 as the deadline for public submissions on the cash mandate, many are concerned that the Government has only considered feedback from industry insiders, neglecting the voices of those directly affected.
As of October 26, 2025, the Government’s response to the Senate’s final report on regional bank closures remains over 430 days overdue, prompting calls for immediate action. Critics argue that unless the Albanese Government accepts all eight recommendations from the Senate inquiry—including establishing a publicly owned bank—the cash mandate could further accelerate the decline of cash usage in regional Australia.
The potential ramifications of these regulations are profound. If businesses are granted exemptions, it could lead to a significant reduction in cash acceptance, ultimately disadvantaging vulnerable communities that rely on cash transactions.
As this situation develops, the implications for regional Australians are critical. The push for a cash mandate raises urgent questions about financial access and equity in rural areas. Stakeholders are calling for transparency and accountability from the Government, stressing that these issues cannot be ignored any longer.
As the deadline for submissions approaches, many are encouraged to make their voices heard before it’s too late. This developing story is a crucial one for anyone concerned about the future of cash access in regional Australia.
