The Albanese government has revealed plans to mandate that businesses accept cash for essential goods and services starting from 2026. This move is part of a broader strategy to ensure that Australians who rely on cash, especially in times of digital outages or natural disasters, can still access vital products.
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The proposed mandate would cover essential items like groceries, fuel, and healthcare services, ensuring that businesses such as supermarkets, petrol stations, and banks continue to serve customers who do not have access to electronic payment methods. The government is expected to begin a consultation process later this year to fine-tune how this mandate will be implemented, which will include discussions on defining essential items and determining potential exemptions for small businesses.
Key Features of the Cash Acceptance Mandate
The cash acceptance mandate is set to ensure that people who rely on physical money aren’t left behind as the country continues to transition to digital payments. The government is pushing for businesses, particularly large corporations, to offer cash payment options for essential services to accommodate vulnerable communities and those in areas with limited digital infrastructure.
While supermarkets and fuel stations are likely to fall under the mandate, smaller businesses may be exempt depending on their size, location, and ability to handle cash transactions.
The Decline of Cash and Rise of Digital Payments
Over recent years, there has been a significant decline in cash usage. More than 6000 ATMs have been removed in the past five years, and 200 bank branches were closed last financial year. This decline is largely driven by the rise of digital payment systems such as contactless cards and smartphone apps, making it easier for people to make purchases without relying on physical currency.
Currently, businesses are allowed to choose which payment methods they will accept, including the option to decline cash. However, if a business accepts credit or debit cards, they are legally allowed to charge customers extra fees for card payments.
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Phasing Out Cheques by 2029
In tandem with the push for businesses to accept cash, the government also aims to phase out cheques entirely by 2029. The first step of this process is to stop issuing cheques by June 30, 2028, followed by a full ban on accepting them by September 30, 2029.
Despite previous attempts to phase out cheques earlier, the government has reiterated its commitment to ensuring people still have the ability to cash cheques until the system is fully phased out. Several major banks, including ANZ, Commonwealth Bank of Australia (CBA), and National Australia Bank (NAB), have already stopped issuing cheque books and are gradually discontinuing the acceptance of cheques.
The Need for Cash Accessibility in a Digital World
The Albanese government’s decision to ensure that cash remains an option for essential services comes in response to the growing concerns around financial exclusion. Many people, especially in regional areas or those without access to digital infrastructure, continue to rely on physical money. For these individuals, the shift to a cashless society can pose significant challenges.
Treasurer Jim Chalmers has been in talks with the CEOs of major banks to ensure they continue supporting cheque cashing services until the planned phase-out is complete, with a focus on minimizing disruption to vulnerable Australians who still depend on traditional banking services.
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Looking Ahead: Cash or Cards?
While the future of cheques is set to be phased out by 2029, the government’s move to ensure businesses accept cash for essential services is a necessary step in protecting vulnerable Australians. As the nation continues to embrace digital payments, balancing access to both electronic and physical payment methods will be crucial in maintaining financial inclusivity.
The upcoming consultation process will provide more clarity on the details of the mandate and how it will affect businesses and customers alike. For now, all eyes are on the 2026 implementation date to see how the government’s cash acceptance plan unfolds.
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