Grocery and fuel retailers will be required to accept cash payments from January 1, 2026. (Source: Yahoo Finance/Getty)
Supermarkets and petrol stations will be forced to accept cash payments from January 1. The Australian government’s new cash mandate will come into effect in the new year, but some groups have argued the changes don’t go far enough.
Treasurer Jim Chalmers confirmed it would be mandatory for fuel and grocery retailers to accept cash as payment for the essential goods from next year. The mandate will apply to in-person transactions of $500 or less between 7am and 9pm.
Small businesses with an annual turnover under $10 million will be exempt from the mandate, except if they share a trademark with a bigger retailer.
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“This will help to ensure Australians can continue to pay with cash for essentials if they want to,” Chalmers said.
“It will ensure Australians who depend on cash for fuel and groceries aren’t left behind.”
Labor first revealed the policy last year and had a consultation period from December to February, where more than 4,000 people sent in submissions over the new law.
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The government will review the mandate after three years to make sure it is functioning as it intended.
Chalmers said Aussies could already pay for bills, including council rates and phone bills, in cash at their local Australia Post outlet through Post Billpay.
“Billpay is available at post offices across Australia and is relied on by businesses and government agencies, including utility providers and government entities across local, state and Commonwealth levels,” he said.
COTA Australia, the leading advocacy organisation for older Australians, welcomed the reform and said it would protect older Aussies and those who relied on cash from being “locked out of everyday life”.
“For many older Australians, cash isn’t a convenience — it’s essential. It gives people control over their money, helps them avoid extra fees, and provides peace of mind around privacy and security,” COTA CEO Patricia Sparrow said.
“The increasing refusal by some businesses to accept cash had created unnecessary barriers for people simply trying to pay for essentials. No one should be turned away or penalised for wanting to pay for groceries or fuel with legal tender.”
But Sparrow called for the mandates to “go further”, arguing there should be a ban on any surcharge for using cash and the mandate should phase in other types of businesses and services.
Cash Welcome campaign founder Jason Bryce criticised the cash mandate, noting it only covers the big supermarkets and fuel retailers.
“Big businesses like Kmart, Bunnings, Chemist Warehouse, Tyrepower and all the others are not covered by this cash mandate,” he argued.
A poll of more than 52,000 Yahoo Finance readers found 92 per cent felt all Aussie businesses should be forced to carry and accept cash.
The move comes as cash usage declines, with cash accounting for 13 per cent of payments in 2022, down from 70 per cent in 2007.
But 1.5 million Australians still rely on cash for their everyday payments, including some older Australians and those on lower incomes.
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