The Australian Government has introduced a new cash acceptance mandate that requires certain businesses to accept cash payments for everyday essential purchases. These changes aim to protect Australians who still rely on cash particularly older Australians, regional communities and people without access to digital payment systems and to ensure access and fairness in the payments system.
What the Cash Acceptance Mandate Requires
From 1 January 2026, most fuel stations and grocery retailers must accept cash for in-person transactions of $500 or less, between 7 am and 9 pm, under the Competition and Consumer (Industry Codes Cash Acceptance) Regulations 2025.
This means eligible businesses can no longer refuse cash for essential purchases within these limits, even if they generally prefer digital payments.
Who Must Accept Cash and Who Is Exempt
Not all businesses are covered by the mandate:
- Must comply: Most grocery and fuel retailers meeting the criteria
- Exempt: Businesses with annual turnover under $10 million, unless they operate under a larger retailer’s trademark or brand.
These exemptions help protect small businesses from undue regulatory burden while preserving cash access for essential goods.
Why the Government Is Introducing the Mandate
The government’s rationale for the mandate includes:
- Ensuring Australians who rely on cash aren’t excluded from essential purchases, particularly if digital systems fail (e.g., outages or natural disasters).
- Supporting social and economic inclusion for people who predominantly use cash.
- Responding to consultations on payment system fairness during 2024–25.
Cash is still widely used: approximately 1.5 million Australians use cash for most in-person transactions, and its availability remains critical in some communities.
What This Means for Businesses
Businesses that fall under the mandate should:
- Prepare to accept cash for eligible transactions from January 2026.
- Set up appropriate cash handling procedures (floats, staff training, reconciliation).
- Confirm whether their turnover or branding affects exemption status.
Small businesses below the $10 million threshold should maintain clear turnover records to demonstrate their exempt status if queried.
Looking Ahead: Review and Enforcement
The government will review the cash mandate after three years to assess its effectiveness and impact on businesses and consumers.
Penalties for non-compliance are expected to apply from mid-2026 when enforcement provisions commence.
Conclusion: Cash Still Matters in Australia’s Payments System
While digital payments dominate, cash remains an important payment option for many Australians. The new cash acceptance mandate ensures that people can continue to pay with cash for essential items like groceries and fuel — even as payment habits evolve.
Businesses covered by the rules should prepare now by reviewing their cash-handling processes, understanding their exemption status, and planning for compliance in 2026 and beyond.
Source:
- Treasury Minutes
- ACCC
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