Australian banknotes: Most are hoarded domestically or used in the shadow economy, says Reserve Bank

Key points

Reserve Bank chair Michele Bullock has said cash is not making a comeback. “We’ve got to think that cash is going to be around probably for another 10 years,” she said this year.

Seven per cent of Australians – who typically live in the country, are older and disadvantaged – use cash for most of their purchases. They will be most affected if cash disappears.

A minority of cash is used for day-to-day transactions. Most is used for hoarding, the Reserve Bank says.

Cash is also common in the “shadow economy” – such as concealing legal activities to avoid taxation, and covering illegal production like the production or sale of drugs.

Heather Lewis is among the 7 per cent of Australians who like to pay for most of their purchases with cash.

Lewis, who is in a wheelchair, uses c