Rural towns and communities are being left high and dry as bank branches close leaving people with no access to bank services.

Treasurer Jim Chalmers recently announced plans that will require all businesses in Australia selling food, fuel, medicine and health care supplies to accept cash for payment by 2026.

With the details to be worked through in 2025, the government has told banks to keep regional bank branches open or they will pay a levy.

Change.org and Cash Welcome organisation are pushing forward with campaigns and petitions to make sure that people in rural and regional areas get the banking access they deserve.

Image courtesy Cash Welcome Organisation

“Millions of Australian consumers and businesses trust and rely on cash for their everyday needs and for budgeting purposes. Even Australians that don’t attend banks or use cash regularly need access to face-to-face banking services and physical money sometimes,” according to Change.org.

Without a guarantee of access to full banking services and physical cash and a guaranteed right to use cash to buy food and essentials, they say:

• ·    Local economies are weaker and vulnerable to system outages.
• ·    Vulnerable people are effectively excluded from the economy.
• ·    Businesses are harder to manage.

Image courtesy Cash Welcome Organisation

Cash Welcome has been campaigning via a petition for mandated acceptance of cash and access to services.

"This is exactly what we have been asking for," said Jason Bryce, spokesperson for the Cash Welcome campaign.

"Now it seems Australians will always be able to access cash and use cash to buy the food, medicine and fuel we need to live," he said.

"The cashless society is dead in Australia, rest in peace!

"There will be more cash in circulation in the future, not less, because of mandated acceptance, and the huge market signal this sends - Australia will never 'go cashless.'"

He said with the laws coming into effect in 2026, there would be plenty of discussion to be had about the exact shape of mandated cash acceptance.

"I urge all Australians to get engaged in this debate, this is important for our children, our communities and the future of the way we pay, save and budget into the future," said Mr Bryce.

Image courtesy 9 News

According to a Western area local charity, cash must be available or many rural communities will struggle.

“The majority of elderly people in small communities are not up to scratch with the ever-changing technology and do not feel comfortable with cards or ATM machine," a spokesperson for the charity said.

“They are most comfortable with cash so why should they not be able to access it via a visit to the bank,” she said.

“Add to that the joy of giving cash to grandchildren for gifts or buying things from local street stalls and markets, cash is still a vital part of life.

“Many country people are also fearful of overriding technology failures that means they cannot access their money in the bank, so like to have some cash at all times for a just in case moment.”

“The fact that some businesses deny cash payments is disgraceful and only shows a lack of care for and lack of knowledge of customers in their communities”.

Losing bank infrastructure

The Australian Prudential Regulatory Authority and the Australian Payments Network reported Australia lost 926 ATMs in total over the last financial year and 8,326 in the last seven years. 

Australia lost 230 bank branches in the last financial year, 2,334 in the last seven years; 52 bank branches were closed last financial year, outside of major cities, and 847 over the last seven years.

Australia lost 63 Bank@Post agencies (Australia Post outlets offering banking and cash services) in the last year, 150 over the last seven years, with the total value of Australian banknotes circulating in communities rising by 37 percent.

And there is evidence that Australians like to use cash, evidence with an estimated one million ATM withdrawals made in Australia each day.