The Albanese Government is taking action so Australians can continue to pay with cash for essential items if they want to or need to.
The Government will mandate that businesses must accept cash when selling essential items, with appropriate exemptions for small businesses.
Today we are releasing a consultation paper to gather insights and feedback on the cash acceptance mandate.
People are increasingly using digital payment methods, but there will be an ongoing place for cash in our society under the Albanese Government. This consultation will help us understand how we preserve cash as a payment option.
For many Australians, cash is more than a payment method, it’s a lifeline. Mandating cash for essential purchases means those who rely on cash will not be left behind.
The consultation focuses on the needs of those who rely on cash, including people in regional areas and those unable to use digital payments, as well as the impact on businesses, particularly small businesses.
We’re also seeking views on what further steps are required to ensure the long‑term and sustainable distribution of cash to enable adequate access.
Through consultation, we are seeking stakeholder views on key aspects of the cash mandate to ensure that it is fit for purpose, including in relation to:
- An appropriate definition of essential goods and services to ensure cash can always be used to access the basics;
- Which businesses the mandate should apply to; and
- Other features, such as transaction caps or time limits, which may be necessary to ensure the mandate works for both businesses, particularly small businesses, and consumers.
Around 1.5 million Australians use cash to make more than 80 per cent of their in‑person payments and up to 94 per cent of businesses continue to accept cash. Cash also provides an easily accessible back‑up to digital payments in times of natural disaster or digital outage.
The Albanese Government continues to make progress towards a modern, world‑class and efficient payments system that is safe, trusted and accessible as part of our Payments Strategic Plan.
Final details of the mandate will be announced in 2025. Subject to the outcomes of consultation, the mandate would commence from 1 January 2026.
The consultation paper is available on the Treasury website. The consultation closes 14 February 2025.