CANBERRA, NOV 18 – Businesses in Australia will be required to accept payment in cash for essential goods and services under a government mandate, reports Xinhua.
Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones yesterday announced that from 2026, businesses will be legally required to accept cash and coins when selling essential goods, including groceries and fuel.
“People are increasingly using digital payment methods, but cash still has a place in our society,” Chalmers and Jones said in a joint statement.
“Mandatory use of cash for essential purchases, such as groceries and fuel, ensures that those who depend on cash are not left behind. For many Australians, cash is more than just a payment method, it’s a lifeline.”
Cash usage in Australia is down during the COVID-19 pandemic. Data from the central bank, the Reserve Bank of Australia (RBA), shows cash will account for 13 percent of all consumer payments in 2022, compared to more than 20 percent in 2019.
According to the government, 94 percent of businesses in Australia still accept cash and 1.5 million Australians use cash for more than 80 percent of their purchases.
Under current law, businesses are not required to accept cash but, if not, they must offer an alternative payment method without fees for customers.
Chalmers and Jones said that the Treasury would carry out a consultation to determine what would be classified as essential goods and services and which businesses would be required to accept the cash, with some small businesses exempt from the mandate.
Final details of the mandate will be announced in 2025 but the government expects it will involve supermarkets, banks, pharmacies, petrol stations as well as utility and health service providers.
Chalmers and Jones also announced on Monday government plans to phase out checks as legal tender. Under the plan, check issuance will stop by June 2028 and will no longer be accepted by September 2029. – Bernama
