Government calls for cash mandate to be on the horizon for 2026
The government has released a consultation paper to gain insights and feedback on a cash acceptance mandate, set to be effective from 1 January 2026.
The Albanese government has made moves to mandate that Australian businesses must accept cash when selling essential items, with appropriate exemptions for small businesses.
Final details of the mandate would be announced in 2025 and the mandate would commence from 1 January 2026, subject to the outcome of the consultation which closes on 14 February 2025.
Treasurer Jim Chalmers said the Albanese government was taking action so that Australians could continue to pay with cash for essential items if they want or need to.
“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,” he said.
“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.”
The consultation would focus on the needs of those who relied on cash, such as people in regional areas or those unable to use digital payments.
The paper would also feature a focus on the impact it would have on small businesses, as well as feedback on what further steps would be required to ensure the long-term and sustainable distribution of cash to enable adequate access.
According to Chalmers, around 1.5 million Australians used cash to make more than 80 per cent of their in-person payments and up to 94 per cent of businesses continued to accept cash.
“Through consultation, we are seeking stakeholder views on key aspects of the cash mandate to ensure that it is fit for purpose,” Chalmers said.
Chalmers said this would include:
· An appropriate definition of essential goods and services to ensure cash could always be used to access the basics
· Which businesses the mandate should and would apply to
· Transaction caps and time limits which could potentially be necessary to ensure the mandate worked for businesses, small businesses and consumers.
“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.”
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