The Journey Towards a Less Cash Australia

Despite headline currency in circulation at near record levels (A$102.4 billion on issue at the end of August 2022, 27% higher than the August 2019 level), substantially less cash is being used in Australia. Total ATM cash withdrawals for the year to July 2022 were just over A$101 billion, a A$30.7 billion (23%) fall on the year to July 2019 and down by more than a third on the highs of 10 years earlier.

The COVID-19 pandemic has sharply accelerated what was an emerging trend towards lower transactional cash use as Australians enthusiastically embrace other forms of payment methods, most notably debit cards, contactless and faster electronic payments.

Set against this trend of a desire to hold cash as a safeguard and store of wealth, but less enthusiasm to actually use it for day-to-day payments, the Reserve Bank of Australia (RBA) undertook a review of the country’s Banknote Distribution Arrangements (BDA).