The Australian government has finalised regulations requiring fuel and grocery retailers to accept cash payments from January 1, 2026. The Treasury confirmed this mandate follows months of consultation with over 4,000 submissions received during the feedback period. Supermarket chains and petrol station operators will now face legal obligations to handle cash transactions. Treasurer Jim Chalmers announced that businesses must accept cash for in-person transactions of $500 or less. The operating hours for this requirement are restricted between 7am and 9pm daily.
Small enterprises with aggregate annual turnover under $10 million will receive exemptions from this mandate. However, small businesses sharing a trademark with larger retailers must comply regardless of their turnover. The regulation aims to protect Australians who depend on cash for essential purchases. Government officials believe this measure ensures payment access for vulnerable populations across the nation.
Australian cash mandate for retailers
Why Australia Made This Change Necessary
Cash usage in Australia has declined dramatically over recent years. Payment statistics show cash made up only 13 percent of transactions in 2022. This represents a significant drop from 70 percent usage in 2007. Yet approximately 1.5 million Australians still depend on cash for daily transactions and purchases. Many older individuals and those with lower incomes continue preferring cash payments for essential goods.
Power outages, internet failures, and system crashes can leave cardless Australians unable to purchase groceries or fuel. Regional and remote areas often experience connectivity issues affecting payment systems. During bushfires, floods, and other emergencies, cash becomes essential when card networks go offline. Advocacy groups representing seniors raised concerns about exclusion from essential services.
COTA Australia, representing older Australians, expressed strong support for this reform. CEO Patricia Sparrow stated that cash offers security, privacy, and financial control. She emphasised that older Australians should never face service denial for choosing cash payments. The advocacy group urged government to expand the mandate further. Sparrow suggested prohibiting surcharges for cash payments across all retailers.
Why Australia Made Cash Acceptance Necessary
Industry Response and Government Rationale
Treasurer Jim Chalmers stated the mandate helps ensure continued cash access for essential purchases. His remarks emphasised that Australians deserve payment choice when buying groceries and fuel. The government committed to reviewing the mandate after three years to assess effectiveness. Officials plan evaluating how businesses implement cash handling procedures under the new rules.
The Labor party introduced this policy initiative during the previous year. The consultation period extended from December to February, gathering extensive community feedback. Government agencies received submissions highlighting the importance of cash accessibility nationwide. Business owners and consumer advocates contributed viewpoints throughout the consultation process.
Consumers already have options to pay bills through Australia Post facilities. The Post Billpay service accepts cash payments for council rates, mobile bills, and utilities. Government entities, utility providers, and businesses across Commonwealth, state, and local levels use this service. This infrastructure demonstrates government support for maintaining cash payment options.
The government’s commitment to cash mandate
Scope and Limitations of the New Rules
The mandate applies specifically to fuel stations and grocery retailers selling essential items. Transactions must occur in-person between 7am and 9pm to qualify for protection. Purchases exceeding $500 fall outside the cash acceptance requirement. This framework exempts retailers from accepting cash for bulk farm supplies or expensive products.
Major retailers including Woolworths and Coles will implement cash handling systems in 2026. Petrol station operators must prepare for renewed cash management procedures. These businesses will need to reestablish cash floats and tills previously phased out. Staff training in cash verification and handling becomes essential for compliance.
The regulations create two new mandatory industry codes affecting retailers nationwide. Civil penalties apply to non-compliant businesses refusing cash for qualifying transactions. The Australian Competition and Consumer Commission oversees enforcement of these regulations. Retailers must provide consumers reasonable opportunities to pay in cash.
Scope and limitations
What Critics Say About the Rules
Cash Welcome campaign founder Jason Bryce criticised the mandate’s limited scope. He argued that major retailers including Kmart, Bunnings, Chemist Warehouse, and Tyrepower face no requirements. These businesses remain exempt despite significant customer traffic and essential product categories. Bryce contended the regulations do not adequately protect all cash-dependent consumers.
A Yahoo Finance survey of 52,000 readers revealed strong public support for broader mandates. Ninety-two percent of respondents believed all Australian businesses should accept cash payments. This indicates public sentiment extends beyond government policy recommendations. Consumer expectations suggest the current regulations represent merely a starting point.
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COTA Australia also urged the government to expand restrictions beyond supermarkets and fuel retailers. The advocacy group suggested including pharmacies, utilities, and government services in the mandate. Patricia Sparrow warned that the current regulations do not eliminate all barriers for cash users. Broader implementation across retail sectors would better protect vulnerable populations.
Looking Forward to Implementation
Retailers must prepare infrastructure and staff training before January 1, 2026. Businesses should review cash handling policies and establish new procedures. Digital cash counters and smart safes reduce errors and reconciliation time. Banks will process increased cash deposits from participating retailers nationwide.
This regulation marks recognition that cash remains important despite digital payment dominance. Australian communities value payment choice and financial accessibility. The government believes maintaining cash infrastructure strengthens economic resilience. Competition and Consumer regulations now protect cash users’ rights to essential purchases.
