Australian Government To Mandate Cash Acceptance For Essential Goods And Services

Australia's federal government has urged certain businesses to accept cash, in a bid to ease the phasing out of cash payments and ensure accessibility for those who rely on it.

Starting Jan. 1, 2026, businesses providing essential goods and services, such as groceries, fuel, banks, and utilities or health services, will be required to accept cash, with some exemptions.

However, many small businesses will be excluded from this mandate, which will be established through regulations that may be amended as needed, The Guardian reported.

Around 1.5 million Australians still rely on cash for over 80% of their in-person payments, with a higher usage in regional areas. Cash also serves as a backup to digital payments during natural disasters, blackouts, and internet outages. Government data shows that up to 94% of businesses continue to accept cash.

"People are increasingly using digital payment methods but there is an ongoing place for cash in our society," Treasurer, Jim Chalmers, and assistant treasurer, Stephen Jones, said in a joint statement. "Mandating cash for essential purchases, such as groceries and fuel, means those who rely on cash will not be left behind. For many Australians, cash is more than a payment, it's a lifeline."

The government is also gradually phasing out cheques. While cheques will still be in circulation, they will no longer be recognized as legal tender. They will stop being issued nationwide after June 30, 2028, and will no longer be accepted as payment after Sept. 30, 2029.

The Treasury will begin consultations before the end of 2024 and make decisions based on factors, such as the size and location of a business, its ability to handle cash, and the reasonable distance people would need to travel to access an essential service that accepts cash.

"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," according to the ministers' statement.

Final details of the regulation will be announced in 2025, AAP reported.

Chalmers said there will be no penalties, but businesses must offer another payment option, like Eftpos or credit cards, at no extra cost to customers.

Andrew McKellar, chief executive of the Australian Chamber of Commerce and Industry, maintained that cash was vital, and urged the government to refrain from imposing a compulsory requirement on small businesses.