RBA cash costs Australia : A new report exposes the harsh reality of cash use in Australia, revealing that rising access costs are hitting certain groups the hardest.
Cash use in Australia is falling, but consumers are paying the price to withdraw it — especially those in regional areas who struggle to find free access points.
The Reserve Bank of Australia’s latest payments system board annual report highlights a sharp rise in cash access costs.
This surge follows widespread ATM and branch closures by major banks, cutting off convenient access to physical money.
The decline in cash transactions has coincided with a steep reduction in bank-owned ATMs and branches. As a result, fee-charging independent ATMs now hold a greater share of the market,’ the RBA noted.
Decline of Cash Use and Rising Costs in Australia
Commonwealth Bank, ANZ, NAB, and Westpac have agreed to a moratorium preventing regional branch closures until 2027.
Before this decision, Canstar’s analysis of APRA data revealed that 230 bank branches shut down during the 2023–24 financial year, with 1,615 closures recorded over the past five years.
Of the 230 closures last year, 52 were in regional areas, compared to 112 the year prior.
The Reserve Bank has also highlighted the ongoing trend of regional branch shutdowns.
Regional Australians face limited free withdrawal options
The RBA highlighted that more communities are losing access to face-to-face banking, hitting consumers and businesses reliant on in-person services the hardest.
Cash Welcome journalist and campaigner Jason Bryce said Australians still want to use cash but face increasing hurdles in accessing it.
‘Easy and affordable access to cash is essential — yet it’s becoming more difficult,’ he noted.
Bank Closures and Shrinking Access to Cash
Even with the sharp decline in fee-free, bank-owned ATMs, Bryce stressed that monthly ATM withdrawal values have remained steady.
Cash Welcome reported that cash in circulation hit $104.67 billion last week, up from $100.46 billion a year ago — the highest level ever in Australia.
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There is no evidence that demand for cash in Australia has fallen since the end of Covid.
In November 2024, the Albanese government announced a plan to safeguard cash as a payment option, describing it as a ‘lifeline’ for many Australians.
By 2026, the government intends to legislate cash as legal tender for all essential services.
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