Legal tender rights for Australians in the headlines again following Bob Katter’s café cash snub

Federal MP Bob Katter fired up the headline writers this week after a café in Canberra’s Parliament House would not accept his $50 note as payment for lunch.

The north Queensland independent, and one of parliament’s oldest politicians, clapped back at what he called “another example of a cashless society that gives all the power to the banks and strips you of your freedom”.

But with only 13 per cent of payments being made in cash these days, it comes as no surprise to some that many merchants offer card-only transactions.

So what are your rights when it comes to paying in notes and coins?

Cash wins in court

Professor Will Bateman is an associate dean of research at the Australian National University College of Law.

He said that while it is legal for a business to refuse banknotes and coins, if they do not accept your cash you could take them to court — and win.

“All businesses are allowed to say the way they want to transact and the sorts of payment they want to accept,” Professor Bateman said.

“But, If you really want to fight it, legal tender laws ensure that there’s always a form of money which must be accepted in a country. And in Australia that is notes and coins.

“So, for example, if that café does not take Bob Katter’s note and he wants to make a big legal dispute out of it, the court will accept the case and the café will have to accept the cash.”

‘Mountains’ of coins rejected

If you try to pay for something with a large pile of coins you may be forced to re-pocket your pennies.

According to the Currency Act 1965 you cannot use more than $5 worth of any combination of 5c, 10c, 20c, and 50c coins.

You also cannot use more than 10 times the value of the coin if $1 and $2 coins are offered.

For example, if someone wants to pay a merchant with 5c coins they can only pay up to $5 worth.

Any more than that will not be considered legal tender.

What happens if you have a ripped note?

Professor Bateman said you must pay using the physical currency — which means any damaged bills are not technically legal tender.

“You need good, undamaged notes and coins,” he said.

“But banks will almost always exchange your ripped notes or damaged coins.”

Crusader for cash

Convenience, security, and faster service were among some of the top reasons why businesses opted for card-only payments.

However, many customers have boycotted businesses for going cashless, saying it denies public freedoms in choosing how to pay for goods and services.

In the outback, the mass exodus of bank branches due to the shift towards digital banking is having a crippling impact on rural and regional businesses that rely on cash transactions.

“The move to a cashless society is a move to strip the people’s freedoms and allow them to be controlled by the banks,” Mr Katter said.

He said he had been advised measures would be taken to reverse the parliamentary café no-cash policy.

SOURCE: ABCNEWS