Dying cash revived for groceries and fuel in government mandate
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The news: The Albanese government plans to require businesses to accept cash for essential items, such as groceries, pharmaceuticals and fuel, starting January 2026.
The details and timeline are subject to a consultation process that will consider the move's impact on small businesses and the needs of those relying on cash, including people in regional areas and those unable to use digital payments, Treasurer Jim Chalmers and Minister for Financial Services Stephen Jones said in a joint statement.
The context: Despite a rapid decline in banknotes and coins —accelerated during COVID-19 — 1.5 million Australians still rely on hard cash for most payments. And, while it remains accepted by up to 94% of businesses, only about 13% of transactions are made in physical currency.
The upcoming mandate will ensure cash acceptance continues for essentials, bringing Australia in line with other European countries and American states that have enacted similar rules, including Spain, France, New York and Colorado.
The mandate will also help ensure cash is easily accessible even during digital outages or disasters, the government said.
The move follows the Albanese government’s plan to phase out cheques by 2030, first announced last year. In a new Cheques Transition Plan, the government mandates cheques will stop being issued by 30 June 2028 and stop being accepted on 30 September 2029, according to the statement.
Consultations are starting this year and will also determine which businesses must comply, as well as potential exemptions for small businesses.
Final details of the mandate will be announced in 2025.
What they said: “For many Australians, cash is more than a payment method, it’s a lifeline. Mandating cash for essential purchases, such as groceries and fuel, means those who rely on cash will not be left behind,” Chalmers and Jones said in the joint statement.
“The Treasurer has written to the CEOs of the four major banks outlining the Government’s expectation that they participate in the Australian Payments Network transition coordination program and provide adequate support to all cheque using customers to ensure their continued financial inclusion.”
“Subject to the outcomes of consultation, the mandate would commence from 1 January 2026.”
The source: Treasurer joint statement
