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The Albanese government says it will mandate that businesses must accept cash for essential items from 2026 while expanding on its plan to phase out cheques.
The proposal aims to ensure Australians who rely on cash, particularly during a natural disaster or digital outage, will still be able to make purchases.
Treasury will commence a consultation before the end of this year on how the mandate will work, including what constitutes an essential item and exceptions for small businesses.
READ MORE: How much businesses can charge you for card payments
It is likely essential items would include groceries and fuel and major businesses that would fall under the mandate would include supermarkets, banking services, petrol stations and healthcare services.
However, smaller businesses could be exempt from the legislation, depending on factors including the size of the business and the proximity of the business to population centres.
The capacity for a business to be able to handle cash will also determine its eligibility, with the government hoping to roll out the mandate in 2026.
The decrease in cash options has been the subject of debate recently.
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Australia lost about 200 bank branches last financial year, while more than 6000 ATMs have been scrapped over the past five years amid the push to digital payments.
Presently companies are allowed to choose what kinds of payments they accept – and they are actually allowed to decline cash.
And if you want to pay by debit or credit card, they can legally charge you extra.
The bosses of the nation's biggest banks recently backed a ban on credit card surcharges.
Excessive surcharges are banned.
Plea to big banks as cheque plan released
Meanwhile, the government says it aims to stop cheques being issued by June 30, 2028, and stop being accepted by September 30, 2029.
The government previously announced they aimed to phase out cheques in June 2023.
Treasurer Jim Chalmers says he has written to the CEOs of the major banks in a bid to ensure they continue to support customers being able to cash cheques until they are phased out.
But ANZ have already stopped issuing cheque books to customers. Other banks including CBA, NAB, Macquarie and Bendigo Bank have already begun to phase out cheques.
In the last decade, cheque usage in Australia has declined by 90 per cent with cheques now making up just 0.2 per cent of non-cash retail payments.
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