‘Cash mandate’ to require businesses to accept cash for essential items

THE federal government has this month announced it will mandate that businesses must accept cash when selling essential items, such as groceries and fuel.

Consultation on the mandate is set to begin before the end of the year to determine which businesses and services should be covered by the mandate, but the mandate will not be implemented until 2026. Exemptions have already been flagged for small businesses.

In a joint statement with Financial Services Minister Stephen Jones, treasurer Jim Chalmers said the mandate would mean those who rely on cash would not be left behind.

It will also ensure community members have an accessible alternative to digital payments during natural disasters or outages.

“People are increasingly using digital payment methods, but there is an ongoing place for cash in our society,” Chalmers stated.

“According to the most recent data, up to 94 per cent of businesses continue to accept cash, and we want to see cash acceptance continue particularly for essentials.”

Cheques will also be phased out entirely within five years, with the federal government revealing they will stop being issued in mid-2028 and will then stop being accepted in late 2029.

“The usage of cheques has declined by 90 per cent in the last 10 years and many banks and financial institutions are ending cheque issuance for new customers,” Chalmers stated.

“To manage this industry trend, the government is acting to give customers and businesses the certainty and the assistance they need to switch to other payment methods.”

He said banks will also have a responsibility to support cheque users through the transition.