Australia's unexpected rise in cash usage despite digital payment dominance
Consensus Summary
Australia is experiencing an unexpected resurgence in cash usage after decades of decline, with data from the Reserve Bank of Australia (RBA) and surveys showing a slight but notable increase in 2025. Cash now accounts for around 15% of transactions, up from a low of 10% in 2022, reversing a long-term downward trend that saw its dominance drop from over two-thirds of payments in 2007. The rise is broad-based, affecting all demographics and spending categories, though leisure spending now leads in cash use. About half of Australians use cash weekly, and one-third say they would face hardship without it, highlighting its role for vulnerable groups, remote communities, and those avoiding digital surcharges. The Australian Taxation Office has also noted a growing 'tax gap' linked to cash transactions, estimating $8.7 billion in uncollected GST for 2023-24. While some analysts, like economist Jason Murphy, link the trend to tax avoidance and illegal activities such as the tobacco economy, others emphasize practical concerns like rising living costs, digital payment failures, and the government’s mandate requiring businesses to accept cash for essentials. The shift reflects both economic stress and the enduring utility of cash in a digital-first world.
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Key details reported by multiple sources:
- Cash use in Australia increased for the first time in decades, with a slight rise reported in 2025 after years of decline.
- Cash use peaked at over two-thirds of transactions in 2007 but fell to around 15% by 2025.
- The Reserve Bank of Australia (RBA) 2025 Consumer Payments Survey found cash use stabilized or increased across all consumer spending categories.
- About half of Australians use cash on a weekly basis, with 1.5 million classified as 'high cash users' (using cash for 80% of transactions).
- The Australian Taxation Office (ATO) reported a rising 'tax gap' in GST collections, estimating $8.7 billion in uncollected GST in 2023-24 (9.4% of theoretical GST).
- Cash use was lowest in 2022, falling by over 50% from 2019, before stabilizing and then rising slightly in 2025.
- Leisure spending became the top category for cash use, surpassing food, retail, and transport.
- Around one-third of Australians said they would face hardship or major inconvenience without access to cash.
- The Commonwealth government mandated that businesses must accept cash for groceries, fuel, and other essentials starting in early 2026.
Points of Difference
Details reported by only one source:
- The author attributes the cash revival to the 'tobacco economy' (mostly illegal) and rising cost of living, with businesses offering cash discounts.
- The article mentions that personal income tax collections rose 50% in the last five years, increasing the tax burden in inflation-adjusted terms.
- The author argues cash use is a marker of economic instability and decline, citing that it would be out of fashion if incomes were sufficient after taxes.
- The article references a 2023 merger where Armaguard acquired Prosegur, leaving Australia with one cash distributor.
- The author criticizes ATM fees (e.g., $3.75) and the impracticality of cash in modern life, contrasting it with tap-and-go payments.
- The RBA’s 2025 Consumer Payments Survey found that 10% of respondents over 65 used cash for all their transactions in 2025.
- Cash use for payments under $10 remains popular, though the volume is a fraction of what it was 20 years ago (95% cash use for small payments in 2007).
- The ACCC allowed banks to collaborate on cash distribution backup plans until December 2026 in case Armaguard fails.
- Three-quarters of Australians carried cash in their wallets in 2025, with a median of $65 held for emergencies.
- Transport saw the largest fall in cash use since 2007 due to digital payments and ride-share services.
- One in three Australians said they would struggle without cash, according to a survey.
- The article does not provide specific demographic breakdowns beyond the ABC’s findings.
Contradictions
Conflicting information between sources:
- Newscomau claims cash use peaked in 2008 and slumped until 2020, while ABC states cash use peaked in 2007 and declined steadily until 2022.
- Newscomau argues cash use is driven by tax avoidance and illegal activities, while ABC and SBS focus more on economic hardship and practicality as key factors.
- Newscomau suggests cash use is a sign of societal decline, whereas ABC and SBS present it as a pragmatic response to cost-of-living pressures and digital payment limitations.
Source Articles
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Cash was meant to be dying. But new RBA data tells a different story
Cash use ticked up for the first time since 2007 — and one in three Australians say they'd struggle without it, according to a survey.
For the first time in decades, cash use in Australia has increased
A new report has found cash use has dropped by more than 50 per cent in almost 20 years. But there has been a slight increase in cash payments since 2022.