Businesses must accept cash payments for essentials

Cash payments to be protected, housing affordability deteriorates and how kids can earn interest on their pocket money. Here are five things you may have missed this week.

1. Government vows to enshrine right to cash payments

Australians who prefer to pay with cash will be able to continue to do so on essential items for years to come under a new proposal from the federal government.

Labor says that from January 2026, it will make it mandatory for businesses to accept cash as a form of payment on essentials like fuel and groceries. Though there will be some carve outs for some small businesses.

In an announcement made earlier in the week, Treasurer Jim Chalmers argued that while 94% of businesses still take cash, the government wants to provide certainty for cash users in the future.

"For many Australians, cash is more than a payment method, it's a lifeline.

"Around 1.5 million Australians use cash to make more than 80% of their in-person payments. Cash also provides an easily accessible back-up to digital payments in times of natural disaster or digital outage."

The government notes that a handful of other countries, including the likes of Norway and Denmark where digital options are by far the most popular payment method, have already introduced similar protections for cash payments.

Treasury will conduct a consultation process to outline the potential scope of the mandate before any changes are implemented, with the final details of the policy set to be released next year.

2. Time ticking down for private health users

Millions of Australians with private health insurance are being urged to make the most of any unused physiotherapy, dental, optical, podiatry or even remedial massage visits they may have left before the end of the year.

That's the message from peak not-for-profit health insurance body, Members Health, which has reminded Australians with private health cover that, in many cases, their extras limits will reset on January 1.

Matthew Koce, the organisations' chief executive, says that it's not only a matter of people getting value out of their insurance, but also taking action now to ensure that they remain healthy in years to come.

"During the present cost of living crisis, it is especially important that Australians maximise the many benefits available through their insurance cover to maintain their health.

"Something as simple as attending regular dental and optical check-ups can help prevent complex, debilitating and painful health issues arising into the future."

Customers can log in to their insurers' online portals or mobile apps to see if they have any unused extras remaining.

3. Betashares launches zero-brokerage share trades

Sydney-based exchange traded fund (ETF) provider Betashares has made another move towards bulking out its expanding investment platform with the launch of brokerage-free share trades.

Australian investors can now buy and sell over 300 shares listed on the Australian Stock Exchange (ASX) through the BetaShares Direct platform.

The platform already offers its users access to brokerage-free trades on ASX-listed ETFs from both its own Betashares ETFs and other fund providers.

"By removing brokerage on ETFs and now on over 300 Australian shares, we are furthering our goal to become the home of investing for Australians," says Alex Vynokur, chief executive of Betashares.

The new shares offering is just the latest expansion from Betashares which, in addition to its established suite of exchange traded funds, has also recently made the move into superannuation.

4. Future owners left further adrift by worsening affordability

It's been another tough year for prospective home buyers, with the latest Housing Affordability Report produced by ANZ and CoreLogic revealing that conditions have deteriorated over the course of 2024.

While the median household income has risen by 2.8% over the past year, the report notes that this is well behind increases in the median home value (up 8.5%) and the median rent (up 9.6%).

As a result, those looking to get into the property market are faced with an even greater challenge. For instance, it now takes 10.6 years for a household on the median income to save a 20% deposit for a median-value home - well above the long-term average.

It also appears that buyers are having to adjust to the situation, with ANZ economist Madeline Dunk noting that interest in units has increased.

"Growth in units is now tracking broadly in line with houses, as less available affordable housing has shifted more demand towards units," she says.

One bright spot for current renters is that conditions could be easing. The latest data from PropTrack shows that rental vacancy rates recently hit their highest level in a year, though when and if this will translate to lower rents remains uncertain.

5. Kids rewarded for saving their pocket money

Gone are the days when pocket money being saved up for toys or a new bike had to sit idly in a piggy bank. Now it can be put to work.

Kit, a money app designed for kids and parents owned by CommBank, is allowing children to earn up to 5% p.a. interest on their pocket money.

Parents can now choose to link a CommBank Youthsaver Account within the Kit app which kids can then choose to store some of their pocket money in. Though once money has been moved to the saver, it becomes untouchable - at least, to kids.

Yish Koh, the managing director of Kit, says the feature has been one of the most requested by users who are keen to give their children the ability to learn about, and earn, interest.

"While there's no shortage of financial products enabling grown-ups to manage a child's savings, most of these don't have an experience designed for the child.

"We wanted to change that - helping get kids excited about the earning-potential of interest, and put into practice positive savings behaviours we hope they'll carry forward into adulthood."

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