Australians Withdrew More Than $9 Billion in Cash in January

Despite this, bank branches in Australia declined 41 percent between 2017 and 2024.

Australian cash. Susan Mortimer/The Epoch Times

Cash withdrawals in Australia rose to more than $9 billion (US$5.7 billion) in January this year, according to new statistics released by the Reserve Bank of Australia (RBA).

This is slightly up from $8.92 billion in January 2024 and significantly higher than during COVID-19, when cash withdrawals fell to a low of $6.3 billion in April 2020.

Cash withdrawals had been steadily dropping over the decade prior to COVID-19, from around $13 billion a month in 2010 to under $11 billion a month in 2019.

Cash Welcome, an advocacy group dedicated to maintaining cash in Australia, highlighted that while the level of cash use in Australia has remained steady, banks continue to push for branch closures.

“There is no decline in the use of cash in Australia since the end of the COVID pandemic,” spokesperson Jason Bryce said.

He accused banks of pushing Australia towards a cashless future, against the people’s will.

“Banks and the RBA need to acknowledge that there’s plenty of demand for cash in Australia and no reason to believe that cash is disappearing,” he said.

“Banks want a cashless Australia, not business or consumers.

“Australians want the right to choose how we pay.”

Cash May Only Be Around For 10 Years

Cash Welcome also recently shared concerns, claiming the RBA Governor Michele Bullock is “not committed to keeping cash available in Australia forever.”

It comes in response to the governor saying that cash may only be around for 10 more years.

“I know there are a lot of advocates for cash out there, but you only have to look overseas to see that it’s not making a rebound really,” she told a parliamentary inquiry on Feb. 21.

“Some other countries, particularly the Scandinavian countries, have seen cash use decline much more substantially than we have. They’ve got even more issues than we have.

“What’s going to turn it around? I don’t think anything is going to turn it around. I think it’s on a long-term decline.”

Bullock said the bank is currently trying to make sure that cash is available.

“That it’s available in retailers, that people can use it and that people can access it. That’s the immediate short-term issue,” she said.

“But we’ve got to think that cash is going to be around probably for another 10 years, and we’ve got to find a way of moving to a new system that means that the distribution of cash can be undertaken and viable.”

Bullock said finding a way to fund cash distribution remained a challenge and highlighted the difficulty in determining who would cover the cost.

“Now, there are a number of options that could get you there. But the bottom line is that cash distribution is—if you don’t want the consumers to pay, then someone has to pay, and it’s going to be difficult to figure out how it is subsidised because that’s what we’re asking for,” she said.

She added normally in a circumstance like this, if the costs were going up, then people would have to pay more to use it.

However, she said the idea that people pay to use cash would “not go down well.”

Despite this, data from the Australian Prudential Regulation Authority released in October 2024 shows bank branches in Australia declined by 6 percent across Australia between June 2023 and June 2024.

In regional and remote areas, where it is harder for residents to travel to a bank, there was a 3 percent fall.

When looking further back, the numbers outline a significant decline in the availability of branches over the past several years.

“Between June 2017 and June 2024, there was a 41 percent fall in the number of branches across the country, including a 36 percent decline in regional and remote areas,” APRA said.

Government and Opposition Views on Cash

In late 2024, the Albanese government mandated that businesses were obligated to accept cash to sell essential items.

Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones said while Australians were increasingly using digital payment methods, there would be an “ongoing place” for cash in society.

“For many Australians, cash is more than a payment method, it’s a lifeline. Mandating cash for essential purchases means those who rely on cash will not be left behind,” the ministers said.

“Around 1.5 million Australians use cash to make more than 80 percent of their in‑person payments and up to 94 percent of businesses continue to accept cash. Cash also provides an easily accessible back‑up to digital payments in times of natural disaster or digital outage.”

Federal Liberal MP Rick Wilson raised concerns about the impact of bank closures in regional Australia in March 2024.

He recommended that Australia Post work to standardise deposit and withdrawal limits from branches. He also suggested consideration for retaining ATMS that were in good working order and regularly maintained to deliver a ready supply of cash to residents.

“One point that’s come out loud and clear is the need for banks to genuinely consult with regional and remote communities, to engage with them seriously, before deciding to close a branch,” Wilson said.

A Senate inquiry into bank closures received 580 submissions.