Fuel and grocery businesses will be required to accept cash for certain essential purchases from 1 January 2026, the Treasurer has confirmed.
Federal Treasurer Jim Chalmers has announced that the government is finalising regulations that will require fuel and grocery retailers to accept cash from 1 January 2026.
Earlier this year, the federal government launched a consultation on a planned mandate for businesses to accept cash when selling essential items.
Following the consultation, new laws will come into being starting on 1 January that will require fuel and grocery retailers to accept cash for in-person transactions of $500 or less.
Small businesses with an aggregate turnover of under $10 million—or, in the case of franchise arrangements, where the franchise’s turnover is under $10 million—will be exempt. However, the mandate will apply to small businesses that choose to share a trademark with a larger retailer.
The regulations are intended to balance consumer needs with business practicality.
Consumers will also continue to have the option to pay bills in cash at local Australia Post outlets through Post Billpay. This is a service relied on by businesses and government agencies for utilities, phone bills, and council rates.
Chalmers described the changes as “a balanced, practical, and sensible step to support cash users while considering the costs and risks to businesses.”
He said the move delivers on the government’s commitment to ensure Australians who rely on cash are not left behind.
“We’re making it mandatory for businesses to accept cash when they sell these essential items,” Chalmers said. “This will help ensure Australians can continue to pay with cash for essentials."
"You should be able to pay with cash if you need to, and that’s what these regulations are all about," the Treasurer said.
The government will review the mandate after three years to assess its effectiveness, potential expansion, and impact on businesses, taking into account developments in cash distribution and access.
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