I get cash when I know I'm going to be out at a place that has a discount for cash, otherwise tend not to use it for convenience. Since becoming full-time disabled convenience has been an increasing priority as I don't have capacity to do much out. Getting cash can mean needing a support worker take me to a bank too, and as NDIS is getting cut I probably will be doing without that discount to save worker time for more important things, and just using a card to save time.

There are fee-less credit cards available for students and pensioners. I have the pensioner one and only have to pay any credit card fees when making an international purchase (usually games or other downloaded/online content). There are also other arrangements where you can use a debit card without fees or credit cards that exempt you from fees every month if you have enough "points" or whatever.

You should know that the term "legal tender" does not mean "businesses must accept cash payment" - this is from the RBA:

However although transactions are to be in Australian currency unless otherwise agreed or specified, and Australian currency has legal tender status, Australian banknotes and coins do not necessarily have to be used in transactions and refusal to accept payment in legal tender banknotes and coins is not unlawful.

If a provider of goods or services specifies other means of payment prior to the contract, then there is usually no obligation for legal tender to be accepted as payment.

I carry it, and apart from a couple of specific, non-essential places, I've never been denied when using it. Businesses are often happy to have it.

One place I visit only accepts cash and has an ATM inside their store. Another (cafe) is like 5% off for cash (not much given the scale but adds up) so I bring exact change.

One of my local Vietnamese takeaway joints offers 10% discount for cash... So I carry cash now 😜

The surcharges suck, and in another month they won't be allowed, but it's not as though everything is going to be cheaper in the long run.

What we want is for the list price to be the final price, instead of this plus this plus that nonsense.

Yes, by carrying cash things might be 1% cheaper, but most people are happy to pay an extra 1% for the convenience of not carrying cash.

That said, as a card-only person for decades, I think I'm old and grumpy enough to start carrying cash again just because I don't like my bank being all up in my stuff.

Are stores allowed to refuse cash payments outright despite them being legal tender?

Yes. Only supermarkets and petrol stations are required by law to accept cash, and only for transactions $500 or less between 7 AM and 9 PM.

https://www.accc.gov.au/business/selling-products-and-services/payment-methods#toc-cash

I take the time to get cash out once a week and use it at smaller places. You can save anywhere between 1-10% paying cash at the right places

Good article here on trends that answers some of your questions: https://theconversation.com/why-cash-has-made-an-unexpected-comeback-in-australia-new-study-281029

After two decades of declining cash use, Australians are handing over more banknotes and coins for regular purchases again, a new survey by the Reserve Bank has found.

The decline in the use of physical money had accelerated during the COVID pandemic, but bottomed out between 2022 and 2025.

One decision that may stabilise the use of cash is that since January 2026 the federal government has mandated that most grocery stores and petrol stations must continue to accept cash.

Good news! Surcharges are ending in October