COVID-19 accelerates debit card use , cash decline
COVID-19 continues to influence payment trends across Australia , with new data showing debit cards are the clear choice of payment , outweighing credit cards by almost three times , while the use of cash has significantly declined . New Australian Banking Association ( ABA ) analysis of RBA data shows the use of debit cards continues to sharply rise , 17 per cent in 2020 , in comparison to cash withdrawals that fell by 10 per cent in the same period , while cheques made up less than half a per cent of all transactions .
ABA Chief Executive Anna Bligh said while debit card usage has been increasing over the last decade , it has been accelerated as a result of the pandemic .
“ Debit cards continue to be the number one choice when Australians purchase something in person or online , and that means the majority of us are paying with our savings instead of credit ,” Ms Bligh said .
“ This trend hasn ’ t always been the case . In 2006 , Australians used credit and debit cards equally . Twelve years later in 2018 , Australians used debit cards at almost double the rate of credit cards and just three years later , it ’ s almost triple .”
A decade ago , debit cards made up 44 per cent of all transactions , which has now increased to 71 per cent . Credit cards made up 32 per cent of transactions ten years ago and have now declined by 7 per cent to a total of 25 per cent . The increase in the use of debit cards is matched by the decrease in cash withdrawals , which is a valid representation of decline in cash transactions .
“ Unsurprisingly , particularly due to stores encouraging cashless transactions throughout the pandemic , the use of cash declined a further ten per cent on the previous year , which is another sign of Australia moving closer and closer to a cashless society ,” she said .
“ Australians love new technology . More and more of us are doing our banking online or through apps and we can expect the use of cash to continue its decline in 2021 and the future .”
The data also showed the significant decline of cheques , which reduced by almost 40 per cent in 2020 and equated for less than 0.3 per cent of all payment transactions for the year . In 2002 , cheques made up 19 per cent of all transactions .
During the COVID-19 pandemic , banks issued 325,000 debit cards to customers who had not previously used them to assist with purchases where cash was not an option .
Sydney cafe operators in court
The Fair Work Ombudsman has commenced legal action in the Federal Circuit Court against the operators of a Sydney cafe .
Facing court are Blue Mist Entertainment Pty Ltd , which operates the Blue Mist Café in Bankstown , and cafe manager Diaa Mohamed .
The regulator commenced its investigation of the café after an employee , an international student from the Phillipines , lodged a request for assistance .
A Fair Work Inspector issued a Compliance Notice to Blue Mist Entertainment in September 2020 after forming a belief the employee had not been paid any wages for seven days of work she performed at Blue Mist Café in July 2020 .
The employee was allegedly owed minimum wages , as well as penalty rates for weekend work under the Restaurant Industry Award 2010 .
The FWO alleges the company without reasonable excuse , failed to comply with the Compliance Notice , which required it to pay the worker ’ s outstanding entitlements . Mr Mohamed was allegedly involved in the breach .
In line with the FWO ’ s proportionate approach to regulation during the COVID-19 pandemic , the
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$ 29.1 million to manage established pest animals and weeds
• Budget will deliver $ 29.1 million to support farmers and land managers to manage established pest animals and weeds
• The funding is part of the Australian Government ’ s broader biosecurity support package worth over $ 400 million .
A new $ 29.1 million investment confirms the Australian Government ’ s long-standing commitment to supporting farmers and land managers to manage established pest animals and weeds .
Minister for Agriculture , Drought and Emergency Management , David Littleproud and Minister for the Environment Sussan Ley said the funding was part of the Australian Government ’ s broader biosecurity support package with over $ 400 million announced in this year ’ s Budget .
“ Pest animals and weeds not only reduce agricultural productivity , they also damage natural resources .” Minister Littleproud said . “ That is why the Australian Government remains committed to supporting on ground efforts to fight the significant impacts of feral animals and weeds on our producers . “ The investment complements the significant
FWO made several attempts to secure voluntary compliance before commencing legal action .
Fair Work Ombudsman Sandra Parker said the regulator would continue to enforce workplace laws and take businesses to court where lawful requests are not complied with .
“ Compliance Notices are important tools used by inspectors to deal with apparent contraventions of the Fair Work Act or industrial instruments , most typically Modern Awards ,” Ms Parker said .
“ Where employers do not respond to or comply with these Notices , we will take appropriate enforcement action to protect employees . A court can order a business to pay penalties for not complying with such a Notice , in addition to back-paying workers as appropriate .”
“ Any employees with
reforms we are committing to across our biosecurity system , to ensure it is modern , efficient and keeps Australia safe from pests and diseases that would harm our agricultural industry . “ Innovation in pest animal management is fundamental to the transformation of Australia ’ s biosecurity system and achieving the industry ’ s vision of reaching $ 100b in value by 2030 .”
Minister Ley said the funding would help protect native species from the significant threats invasive pest animals and weeds present to our natural environment . “ Millions of native species die each year because of pest animals and weeds and this budget measure will fund practical on ground collaboration with local Natural Resource Management groups , and state and territory governments to tackle pests , and to prioritise new research for innovative pest reduction technologies ,” Minister Ley said .
“ Feral pigs can wreak havoc on turtle populations ; deer , pigs and hard hooved animals destroy fragile native habitat and feral cats claim the lives of millions of birds and small reptiles each year . “ As part of this program , Indigenous rangers will also play an important role , with $ 4 million over four years to undertake on-ground pest management control and to protect biodiversity and cultural values .
“ These new initiatives complement existing investments in bushfire recovery for native wildlife and habitat , safe havens , and our new ten year Threatened Species Strategy .” FAST FACTS
• T h i s Budget builds on actions already taken by the Australian Government to drive agriculture ’ s competitiveness and growth , laying the foundations to support industry reach the target of $ 100 billion in farmgate value by 2030
• The Agriculture 2030 package is about removing the handbrakes to growth , tackling emerging trade
concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance .”
The FWO is seeking penalties against Blue Mist Entertainment Pty Ltd and Mr Mohamed . The company faces a penalty of up to $ 33,300 and Mr Mohamed faces a penalty of up to $ 6,660 .
The regulator is also seeking orders for the company to take the action required to comply with the Compliance challenges early , protecting our country from pests and disease , supporting industry resilience and productivity , boosting innovation and human capital availability
• Funding builds on the $ 30.3 million Established Pest Animals and Weeds Management Pipeline program
• Despite drought , COVID-19 , floods and fires , the farming , fishing and forestry sectors are projected to be worth $ 71.2 billion in production value this year
• ABA- RES is forecasting a record high $ 66 billion in farm production value this year
• Nationally , the annual cost of established vertebrate pest animals is estimated to be $ 800 million and over $ 4 billion for weeds in terms of production losses and control activities . Their impact on the environment is difficult to calculate but likely to be higher .
Notice , which includes rectifying the alleged underpayment in full , plus superannuation and interest .
A directions hearing is listed in the Federal Circuit Court in Sydney on 22 June 2021 . Employers and employees can visit www . fairwork . gov . au or call the Fair Work Infoline on 13 13 94 for free advice and assistance about their rights and obligations in the workplace . A free interpreter service is available on 13 14 50 .