CASH acceptance will be mandated in Australia for essentials by January 1, 2026.
Treasurer Jim Chalmers has announced new plans that require all businesses in Australia selling food, fuel, medicine and health care supplies to accept cash for payment.
“There is an ongoing place for cash in our society,” Mr Chalmers said.
The government has also told banks to keep regional bank branches open or they will pay a levy.
The government has clearly heard the voice of consumers and retailers, through a Cash Welcome campaign calling for mandated acceptance and access, and from retailers complaining about merchant fees at their points of sale.
Cash Welcome campaign spokesperson Jason Bryce said Australians will always be able to access cash and use cash to buy the food, medicine and fuel they require.
“This is exactly what we have been asking for,” Mr Bryce said.
“There will be more cash in circulation in the future, not less, because of mandated acceptance, and the huge market signal this sends – Australia will never ‘go cashless’.
“These laws won’t come into effect until 2026, so there is plenty of discussions to be had about the exact shape of mandated cash acceptance.
“I urge all Australians to get engaged in this debate. This is important for our children, our communities and the future of the way we pay, save and budget into the future,” he said.
The Australian Government is acting so Australians can continue to pay with cash for essential items if they want to, while also ensuring an orderly transition to phase out cheques.
The government will mandate businesses must accept cash when selling essential items, with appropriate exemptions for small businesses.
Mandating cash for essential purchases, such as groceries and fuel, means those who rely on cash will not be left behind.
Around 1.5 million Australians use cash to make more than 80 per cent of their in‑person payments. Cash also provides an easily accessible back‑up to digital payments in times of natural disaster or digital outage.
Treasury will commence consultation before the end of 2024 on which businesses supplying essential goods and services should be covered by the mandate.
The consultation will consider the needs of those who rely on cash, including people in regional areas and those unable to use digital payments, as well as the impact on businesses, particularly small businesses.
It will also cover what further steps are required to ensure the long‑term and sustainable distribution of cash to enable adequate access.
Final details of the mandate will be announced in 2025. Subject to the outcomes of consultation, the mandate will commence from January 1, 2026.
Media release
