Treasurer Jim Chalmers has confirmed that Australians will be guaranteed the right to pay with cash for essential items from January 1, 2026.
The new regulations will require fuel and grocery retailers to accept cash as a method of payment between 7am and 9pm.
“We want to make sure that people can use cash for essentials when they want to and when they need to,” Mr Chalmers to Sky News Sunday Agenda.
“And so the cash mandate is all about making sure supermarkets and servos have to accept cash between seven o’clock in the morning and nine o’clock at night.”
Mr Chalmers added that small businesses will have a carve-out, but for most retailers, the mandate will create a legal obligation to accept cash.
The regulations, which have now been finalised, require in-person transactions of $500 or less to be accepted in cash at fuel and grocery outlets.
Small businesses with annual turnover under $10 million have been exempted, although those sharing a trademark with a larger retailer will still be covered.
The move comes amid a decade-long decline in cash use, with cash accounting for just 13 per cent of payments in 2022, down from about 70 per cent in 2007.
Despite this, approximately 1.5 million Australians continue to use cash for 80 per cent of their in-person spending.
Australians also have options to pay bills, including utilities, phone bills, and council rates, in cash at local Australia Post outlets through Post Billpay.
The cash mandate will be reviewed after three years to ensure it is functioning as intended.
The government has also announced it will crack down on price gouging by the major supermarkets.
Under the new regulations, very large retailers will be banned from charging prices that are excessive when compared to the cost of the supply plus a reasonable margin.