Cash Mandate Australia: What It Is and Why It’s Gaining Attention

Australia’s cash mandate regulations are set to transform the way essential businesses operate when they take effect on 1 January 2026. Specifically targeting supermarkets and petrol stations, these new rules will require businesses to accept cash for in-person transactions of $500 or less between 7 am and 9:00 pm. This policy comes in response to the declining use of cash in the economy. However, approximately 10-15% of Australians still prefer cash payments—particularly older citizens and those in regional or remote areas.

What is a cash mandate, and why has it sparked extensive consultation across Australia? The Cash Mandate 2026 Australia proposal defines essential goods and services as those that address fundamental human needs, such as food, housing, and healthcare. Following the government’s consultation period from December to February, which gathered more than 4,000 public submissions, the final framework focuses exclusively on retailers providing essential goods. However, the government plans to review the mandate after three years to ensure it functions effectively where it matters most. Despite these efforts, some details remain undecided, with Treasury officials confirming that final specifics will be announced in 2025.

What is a Cash Mandate?

The cash mandate represents a legislative requirement compelling certain businesses to accept physical currency as payment for essential goods and services. Currently, no regulations exist that require merchants to accept cash as a payment method. The mandate aims to address this gap by establishing clear parameters for the acceptance of cash.

The major goal of this effort is to maintain cash as a viable and accessible in-person payment option for essential commodities, allowing all customers to fully participate in the economy. This is especially crucial for the approximately 1.5 million Australians who continue to rely on cash for 80 per cent or more of their in-person transactions.

Additionally, the cash mandate serves several important functions:

• Promoting social inclusion, especially for older Australians, low-income households, culturally and linguistically diverse Australians, and First Nations peoples who may be unable to use digital payment methods
• Enhancing payment systems’ resilience during outages, natural disasters or technological failures
• Avoiding additional future costs where cash infrastructure would otherwise need to be rebuilt

The design of the cash mandate is guided by key principles to ensure it is proportionate, achievable, transparent and responsive. Furthermore, it must balance the needs of cash-dependent consumers while minimising impacts on businesses, which explains the exemptions for small businesses and specific operational parameters such as transaction limits and designated hours of acceptance.

Who Must Comply and Who is Exempt?

Under the cash mandate Australia regulations, businesses supplying essential goods must provide consumers with a reasonable opportunity to pay in cash. The mandate primarily targets fuel stations and grocery retailers, including major supermarket chains and independent operators.

According to the requirements, these businesses must accept cash payments for in-person transactions of up to AUD 764.50 between 7:00 am and 9:00 pm. Notably, this threshold exempts larger purchases such as tyre replacements or bulk farm supplies.

Businesses covered by the mandate include:

• Major supermarkets (Woolworths, Coles, IGA)
• Petrol stations and fuel retailers
• Small businesses sharing trademarks with major retailers

In contrast, several categories are exempt from these regulations:

• Small firms having an annual turnover less than AUD 15.29 million.
• Fuel retailers that don’t regularly sell unleaded petrol
• Pharmacies, department stores, and hardware stores

The ACCC may grant additional exemptions in exceptional circumstances, such as natural disasters preventing cash transportation or when cash acceptance would pose a significant risk to a business’s viability.

The cash mandate 2026 Australia policy takes effect from 1 January 2026, with penalties for non-compliance beginning six months later on 1 July 2026. A review after three years will evaluate the system’s effectiveness.

How a Cash Mandate Works in Practice

For businesses affected by the cash mandate, implementing the change involves several operational adjustments. The system primarily requires checkout options to accommodate cash payments, with appropriate signage alerting customers to this payment method. Staff training becomes essential as employees need to handle physical currency with confidence and security.

In practice, consumers making purchases under $500 at supermarkets or petrol stations must be offered the option to pay with physical notes and coins during mandatory hours. Businesses consequently need to maintain sufficient cash reserves, requiring secure storage facilities and regular banking arrangements. This necessitates coordination with cash-in-transit services to ensure adequate supply and deposit of physical currency.

The ACCC will monitor compliance through spot checks and consumer complaints. Non-compliant businesses face financial penalties, though these will only be enforced after 1 July 2026, allowing a six-month grace period for operational adjustments.

For smaller retailers sharing branding with major chains, the mandate applies regardless of individual store size, meaning franchise operations must comply, even if they are independently owned. Nevertheless, the system allows flexibility outside the 7 am-9 pm window, when businesses may choose to decline cash if operational needs require it.

The practical reality of the cash mandate essentially balances consumer protection with reasonable accommodations for business operations, ensuring Australians who depend on cash retain access to essential goods without placing undue burden on retailers.

Why the Cash Mandate 2026 Australia Matters?

The cash mandate initiative addresses a critical social need, primarily benefiting approximately 1.5 million Australians who rely on cash for 80% or more of their in-person transactions. Beyond convenience, this policy represents a safeguard for vulnerable populations most affected by declining cash acceptance:

• Regional communities
• Older Australians
• First Nations peoples
• Culturally and linguistically diverse communities
• People living with disabilities
• Victim-survivors of family and domestic violence

Moreover, cash provides vital payment resilience during natural disasters when electronic systems are unavailable or fail. Currently, no rules exist requiring merchants to accept cash, leaving cash-dependent Australians increasingly vulnerable as businesses shift toward digital-only payments.

Notably, the targeted approach to the fuel and grocery sectors strikes a balance between social inclusion and business practicalities. Treasury estimates implementation costs at AUD 8.87 million in one-off expenses for fuel retailers not currently accepting cash, plus ongoing annual handling costs between AUD 21.71 million and AUD 43.42 million across all in-scope businesses.

Overall, the mandate acknowledges that digital inclusion remains uneven across Australia. The 2023 Australian Digital Inclusion Index revealed substantial gaps in digital ability among Australians aged 65 and above, with those aged 75 and above facing even greater disparities in access. Indeed, 24% of people with disabilities experience high digital exclusion.

What a Rising Cash Mandate Signals About Markets?

Australia’s cash acceptance initiative mirrors a global market trend, as several advanced economies implement similar regulations. Norway and Denmark have already established cash acceptance mandates, primarily to maintain cash as a viable payment method during financial crises. Likewise, Sweden, the United Kingdom, and the United States are actively considering comparable requirements.

The mandate’s introduction reflects growing recognition that cash remains vital for broader economic stability. Approximately 7 per cent of Australians—roughly 1.5 million people—rely on cash for 80 per cent or more of their in-person transactions. These figures signal continued market demand for physical currency alongside digital options.

In fact, international approaches reveal a strategic pattern. Whereas overseas examples typically apply to all businesses regardless of size, Australia’s approach exempts smaller enterprises. Due to this disparity, the majority of Australian businesses will continue to be exempt from the rule.

Transaction limits also follow international precedent. In Norway, merchants must accept cash payments up to approximately AUD 4,281.17, whereas Australia’s proposed model focuses exclusively on essential sectors.

This targeted regulatory approach attempts to break what economists describe as a self-fulfilling cycle: as merchants stop accepting cash, consumer usage declines, further reducing business incentives to accept cash, ultimately raising costs across the entire cash distribution system.

Conclusion – Cash Mandate Australia

Australia’s forthcoming cash mandate represents a significant shift in payment policy, establishing clear boundaries while acknowledging the changing habits of consumers. The regulations strike a balance between preserving cash access for vulnerable populations and recognising the digital payment revolution reshaping retail environments.

Undoubtedly, the mandate addresses critical concerns related to social equity. Through targeted application to essential sectors, such as supermarkets and fuel retailers, the government has crafted regulations that protect approximately 1.5 million cash-dependent Australians without imposing universal requirements across all business types. Additionally, the $500 transaction threshold creates reasonable parameters that accommodate most everyday purchases.

The exemptions for small businesses likewise demonstrate a pragmatic approach, acknowledging that overly broad regulations might disproportionately burden smaller operators. Similarly, the implementation timeline provides businesses with an adequate opportunity to adjust operations before penalties commence in July 2026.

Although Australia’s approach differs somewhat from that of international counterparts like Norway and Denmark, all share a common purpose: ensuring cash remains viable during system disruptions while supporting vulnerable communities. The three-year review period further shows commitment to adapting these rules based on practical outcomes rather than rigid adherence to initial frameworks.

Above all, these regulations signal official recognition that, despite rapid digitalisation, payment choice remains essential for fully inclusive economic participation. Although digital payment methods continue to expand, the cash mandate ensures that Australians in regional areas, older citizens, and those facing technological barriers can still access life’s necessities with dignity and independence. After all, true payment innovation must serve everyone, not just those most comfortable with digital technology.

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