What Is This About?
The Australian Government is introducing regulations to require certain businesses to accept cash payments for essential goods. This is in response to the declining use of cash across the economy, while recognising that approximately 1.5 million Australians still rely on cash for the majority of their everyday purchases.
Cash Use in Australia
- Cash use fell from 70% of consumer payments in 2007 to 13% in 2022
- Approximately 1.5 million Australians use cash for over 80% of their in-person purchases
- Around 94% of businesses still accept cash currently
The Timeline
What Changed Between Consultation and Draft Regulations?
December 2024 Consultation Paper
Proposed to cover:
- Supermarkets
- Petrol stations
- Pharmacies
- Medical services (GPs, dentists)
- Utilities (water, electricity, gas)
- Hardware stores
- Telecommunications services
- Pet stores and veterinary services
- Childcare
- Pre-school and primary education
- Various other essential services
October 2025 Draft Regulations
Actually covers:
- Grocery retailers
- Fuel (petrol) retailers
All other categories from the consultation paper are not included in the draft regulations.
The Specific Details
Who Must Accept Cash?
- Grocery retailers and fuel retailers only
- With annual turnover of $10 million or more
- Or part of franchise arrangements with aggregate turnover of $10 million or more
Transaction Limits
- Applies only to in-person transactions
- Maximum transaction value: $500
- Does not apply to online purchases
What's Required
- Businesses must provide "reasonable opportunity" to pay with cash
- They can still accept other payment methods
- They are not restricted to cash-only
Exemptions
- Small businesses with turnover under $10 million
- Businesses that can demonstrate exceptional circumstances (e.g., natural disasters preventing cash transportation)
- Businesses where cash acceptance costs "would pose a significant risk to the ongoing feasibility" of the business
What's Not Covered
The following items, which many would consider essential and were included in the consultation paper, are not covered by the draft regulations:
| Category | Status in Draft Regulations |
|---|---|
| Pharmacies / Medicines | Not Covered |
| Medical Services (GPs, Dentists) | Not Covered |
| Utilities (Electricity, Gas, Water) | Not Covered |
| Housing / Rent | Not Covered |
| Clothing | Not Covered |
| Insurance | Not Covered |
| Telecommunications | Not Covered |
| Childcare | Not Covered |
| Education | Not Covered |
Note: For utility bills and similar expenses, consumers can pay in cash at Australia Post outlets through the Post Billpay service, which accepts payments for over 1,000 different bill types.
Multiple Perspectives
This regulatory change involves balancing several considerations:
Social Inclusion
Approximately 1.5 million Australians rely heavily on cash. This includes older Australians, people with disabilities, those in regional areas, and people who use cash for budgeting.
Business Costs
Handling cash involves security costs, cash-in-transit fees, training staff, and infrastructure. Small businesses often lack economies of scale to absorb these costs.
System Resilience
Cash provides a backup payment method during digital outages, natural disasters, or telecommunications failures.
Privacy & Safety
Cash transactions don't require sharing personal data, which some people value for privacy or safety reasons (including domestic violence survivors).
Industry Viability
The cash-in-transit industry is in structural decline. Armaguard, a major provider, required emergency financial support in 2024 to maintain operations.
Consumer Choice
The regulations aim to preserve choice for consumers while recognising the trend toward digital payments.
Enforcement and Review
Enforcement
Businesses that fail to comply could face civil penalties of up to 600 penalty units (approximately $198,000 as of October 2025).
Review Process
The Government has committed to reviewing the mandate after three years to consider:
- Whether the mandate should be expanded to other business types
- The impact on currently affected businesses
- Developments in cash distribution and access
Further Information
For those who wish to examine the source materials and official documentation: