Australia is rapidly moving towards becoming a cashless society, though certain groups—particularly the elderly and those with lower incomes—continue to rely on cash for their transactions.
To address this, the Federal Government is considering new legislation that would make it mandatory for businesses to accept cash for essential goods, including groceries and fuel. This initiative aims to protect the rights of consumers who prefer cash payments over digital alternatives.
Current Trends in Payment Methods
Research from the Reserve Bank of Australia in 2022 indicates that 76% of Australians use cards for payment, while 13% still use cash. For some, particularly older individuals and those on limited incomes, cash remains a preferred payment method due to concerns over security, a lack of trust in online banking, or the simplicity of using physical currency.
In recognition of these preferences, the Federal Government plans to introduce legislation within the next two years requiring businesses to accept cash for essential purchases.
Details of the Proposed Legislation
At present, businesses are not legally obligated to accept cash payments.
- The new legislation will require businesses to accept cash for essential items such as groceries, fuel, and other necessities.
- Cheques are set to be phased out entirely by September 2029.
- A consultation period will take place in 2024/25, with the legislation coming into effect from 2026.
- Small businesses may be eligible for exemptions, with further details to be confirmed.
How This Affects Small Businesses
For small businesses, particularly those that currently only offer cashless payment options, this proposed change could have significant operational implications. Accepting cash will require:
- Investment in cash handling systems, including tills and safes.
- The management of cash floats and the process of banking cash at the end of each day.
- Adjustments to existing security and accounting procedures to accommodate cash transactions.
If your business is impacted by these changes, it is important to prepare early. Our team can help you understand the full implications and ensure that you are ready for any upcoming legal requirements. Contact us for further guidance on how to navigate these changes smoothly.
