Cash Keeps Mitta Mitta Brewing Open During Six-Hour Power Outage
Mitta Mitta Brewing Company in Victoria successfully navigated a six-hour power outage between Christmas and New Year, thanks to the humble cash payment. Despite the disruption, the brewery remained open, serving customers who had cash on hand.
The brewery's ability to accept cash payments proved crucial during the outage. With no electricity, other payment methods were unavailable. However, the brewery had wood for the pizza oven, gas for the barbecue, and most importantly, cash in customers' pockets. This allowed the business to continue operating, albeit at a reduced capacity.
The power outage cost the brewery around 30 per cent of the day's take. Despite this, the brewery's resilience has sparked a conversation about the importance of cash in small businesses. Richard Holden, an economics professor, believes a cashless society is inevitable but warns that the transition should be managed carefully. He argues that essential services like medicine, housing, and utility bills should not be left behind in the shift towards electronic payments.
The Reserve Bank of Australia (RBA) has proposed a 'cash mandate' requiring businesses and petrol stations to continue accepting cash, with certain exemptions. The Albanese government has proposed exempting businesses grossing less than $10 million annually. This proposal has drawn over 4000 submissions, with some arguing it brings Australia one step closer to a purely electronic payment system.
The power outage at Mitta Mitta Brewing Company highlights the importance of cash for small businesses. It allows them to operate even during power outages, ensuring a steady income. The proposed 'cash mandate' aims to balance the shift towards electronic payments with the need to maintain access to cash, particularly for essential services and small businesses.
