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Cash Acceptance Laws Proposed from 20226

Despite Australia's rapid shift towards a cashless society, the acceptance of cash could soon become mandatory for small businesses.

Research from 2022 by the RBA shows 76% of Australians now pay using cards.

Australia is increasingly moving towards a cashless society, yet there remains a significant portion of the population that relies on cash for transactions.

In response to this, the Government is considering new legislation that would require Australian businesses to accept cash payments for essential goods & services such as groceries, fuel, and more.

What Does This Mean for your Small Business?

Although cashless payments have become the norm for many, certain demographic groups—such as the elderly and individuals in lower income brackets—continue to prefer cash. For these consumers, cash provides a sense of security and simplicity, as well as a way to avoid reliance on digital banking systems.

To ensure these consumers are not excluded, the Federal Government is proposing a change in legislation to make it compulsory for businesses to accept cash payments. The Government is aiming to implement these changes within the next two years, with a consultation period in 2024/2025 and full legislation potentially coming into effect by 2026. Small businesses may be granted some exemptions, although further details are yet to be confirmed.

What You Need to Know

Currently, under existing laws, businesses are not obligated to accept cash payments. However, the proposed legislation would require businesses to accept cash for essential items, such as groceries and fuel. As part of the changes, cheques will be phased out as a payment method by September 2029.

If your business sells essential items and currently only offers cashless payment options, this shift in policy could have significant operational implications. For instance, you may need to invest in cash registers, secure cash floats, and establish a process for banking cash at the end of each day—steps that cashless systems have previously made unnecessary.

Here to Help

If your business is impacted by this potential legislation, it’s important to understand the practicalities and prepare for the changes. Our team is available to discuss the potential implications and help you navigate this evolving landscape.

Please get in touch if you have any questions or need further information on how these changes could affect your operations.