Future of Banknote Distribution in Australia

There is no longer any doubt that cash as a means of payment is declining – not just in relative but, increasingly, in absolute terms. The recent high demand for banknotes as a store of value only masks the reduction in their use for transactions.

There is also no doubt that cash performs a vital societal role and offers benefits that other forms of payment cannot. However, the fixed costs of cash are high – not so much in the volumes of notes and coins produced, but in the physical infrastructure for distribution. Steps to reduce these costs are leading to a vicious downward spiral, whereby reduced usage leads to reduced access which forces further reductions in usage, and so it goes on.