Australian businesses selling essential goods must accept cash beginning in 2026, the government said today.
This would apply to supermarkets, banks, petrol stations, and pharmacies. Treasury will begin a consultation this year to determine the mandate’s exact scope.
“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,” according to Treasurer Jim Chalmers and Financial Services Minister Stephen Jones.
Some businesses may be given an exemption, especially small businesses.
“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,” Chalmers and Jones said.
Around 94% of Australian businesses accept cash, according to the Reserve Bank of Australia.
More than 1.5 million Australians use cash for over 80% of their purchases.
Cheques will also no longer be be issued after June 2028, and will not accepted after September 2029.
Treasury is set to release its plan for phasing out cheques this week. Cheques represented just 0.2% of non-cash retail payments in Australia in 2023.