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It's become more and more common for businesses to only accept digital forms of payment - whether that's paying with your phone, or your credit card.
But cash is heavily relied upon in regional parts of the country, as well as among older Australians.
National Seniors Australia Chief Executive Chris Grice says for older Australians, it’s a lifeline.
"Cash is something that is important to a significant number of seniors in the community. And whilst the number in the scheme of things, I think it was something like the Treasurer was saying, 1.5 million folk, were still using cash. About 80 per cent of that number folk age plus 65. So it's still very, very important for the older cohort. And it's simply down to, it's what they're comfortable with. They feel safer with it. And also they're challenged by the challenges of cyber safety these days."
The Reserve Bank says around 94 per cent of businesses still accept cash, down from 99 per cent just before the pandemic.
But there is also currently no legislative requirement for Australian businesses to deal in notes and coins.
Small Business Association of Australia Chief Executive Anne Nalder says it's often easier for businesses to not have it on the premises.
"To use a card is convenient for both the business and the consumer now. To have cash in your premises, bear in mind that going back many years ago when cash was dominant, business owners would have to send their staff down to a bank branch. They'd have to get a certain amount of notes and coins, et cetera, for the cash flow. And so that requires time and effort. And bear in mind also that a lot of branches are closing up now, so you just can't pop down to your local bank. So they would be looking at convenience."
Now, the federal government has announced a new mandate which will force businesses to accept cash when selling essential items, expected to be things like groceries, healthcare, pharmaceuticals and fuel.
And it's released a Cheques Transition Plan which will aim to give customers a long period of time to transition away from them - though the usage of cheques has already declined by 90 per cent in the last ten years.
Under that part of the plan, cheques will stop being issued altogether by June 30, 2028 - and stop being accepted on September 30 the following year.
But the focus remains on cash.
Treasurer Jim Chalmers says millions of Australians still rely on banknotes, even as the economy becomes more digitised.
"Our objective when it comes to payments is to modernise our financial system, but to do that in a way that doesn't leave people behind, to make sure that there's an ongoing role for cash, and to make sure that as we phase out cheques we're doing that on a reasonable and longer run up. Now we know that most people like to pay digitally, and we know the direction of travel is towards digital payments, but still, something like one and a half million Australians pay mostly with cash."
Cash mandates already exist in parts of the United States - as well as in Spain, France, Norway and Denmark.
Australia's government will begin a consultation process to follow suit before the end of this year.
The consultation will consider the needs of those who rely on cash, including people in regional areas and those unable to use digital payments, as well as the impact on small businesses - and which ones will be covered by the mandate.
And the Treasurer says they need to consider what will happen to businesses who refuse to accept cash.
"When it comes to penalties, the main difference between what we're proposing today and some of the penalties that have been proposed elsewhere in the parliament. Andrew Gee who's done a lot of well intentioned work I think in this area. Our intention is to try and get as many businesses selling essentials to take cash as we can. But we don't want to penalise small businesses. We want to find an appropriate way to carve out small businesses, to recognise regional pressures and other pressures, to make sure that the focus isn't on penalties. The focus is on making sure that the medium sized and bigger businesses that sell essentials are taking cash."
18 percent of small businesses are owned by migrants.
Ms Nalder says it's essential the government properly communicates any potential changes to small business owners, especially those who don't speak English as a first language.
"Business owners will have to learn to adapt. There will be some types of businesses that will still require to have cash in their premises, but not all businesses. So I believe that we have to have an advertising campaign, an educational campaign. Once the laws are brought in, as they're being brought in, business owners will need to be educated as to what they must do."
Mr Grice says potential customers will also need support from the banking sector when it comes to the phase out of cheques as well as the use of cash.
"The education and support is not being provided to a full extent by the complete banking community. There are some of the banks that are stepping forward and basically supporting, but we're also seeing not a broad step change, and so to continue to keep cash circulating is critically important."
Opposition Leader Peter Dutton has criticised the government's proposal, calling it “nothing more than a thought bubble”.
That criticism has been echoed by Opposition Finance spokeswoman Jane Hume, who says the announcement doesn't benefit those struggling with the cost of living.
"This is simply a plan for a plan. Yet another consultation for something that won't come into effect until 2026. This looks like to me a government scratching around for an economic agenda because it's lost the fight against inflation which is the number one issue for Australians."
But Greens Senator Sarah Hanson-Young has suggested the plan has some merit - if vulnerable groups aren't left worse off by the mandate.
"The Greens have been concerned that some people, particularly those in the more senior Australian group do require and need access to cash and it should be available so we'll work with the government to make sure that older Australians and those in a vulnerable position who need access to cash do have it."
