The Federal Government will determine next year which businesses will be required by law to continue to accept cash in an increasingly digital world.
Federal Treasurer Jim Chalmers said the Government would mandate that businesses must accept cash when selling essential items, with appropriate exemptions for small businesses.
Minister Chalmers said Treasury would commence consultation before the end of the year on which businesses supplying essential goods and services should be covered by the mandate.
He said final details of the mandate would be announced in 2025 and, subject to the outcomes of consultation, the mandate would commence from January 1, 2026.
“People are increasingly using digital payment methods, but there is an ongoing place for cash in our society.
“Mandating cash for essential purchases, such as groceries and fuel, means those who rely on cash will not be left behind.”
Minister Chalmers said around 1.5 million Australians used cash to make more than 80 percent of their in-person payments.
“Cash also provides an easily accessible back up to digital payments in times of natural disaster or digital outage.”
He said according to the most recent data, up to 94 percent of businesses continued to accept cash.
“We want to see cash acceptance continue particularly for essentials.”
Minister Chalmers said other economies had already put in place cash mandates including Spain, France, Norway and Denmark, and they were also in place in some US states including Colorado, Illinois, Montana, Massachusetts, New Jersey and New York.
He said the consultation would consider the needs of those who relied on cash, including people in regional areas and those unable to use digital payments, as well as the impact on businesses, particularly small businesses.
Minister Chalmers said the Government’s Cheques Transition Plan, also released today, would ensure the phase out of cheques was done in an orderly and planned way.
He said the Plan included a long lead time for customers and businesses to adjust to alternative payment methods with cheques still being issued and accepted for several years.
“Under the Plan, cheques will only stop being issued by June 30, 2028 and stop being accepted on September 30, 2029.”
