The Albanese government says it will make it mandatory for businesses to accept cash for essential goods from 2026, extending its plan to phase out cheques. The proposal is designed to ensure Australians who rely on cash, particularly during natural disasters or digital disruptions, are still able to make purchases. Treasury will consult on how the mandate will work by the end of the year, including what would be considered essential goods and exceptions for small businesses.
The Albanese government says it will make it mandatory for businesses to accept cash payments for essential items from 2026, extending its plan to phase out cheques. (A Current Affair) Essential items could include groceries and fuel, with large businesses subject to the mandate including supermarkets, banking services, petrol stations and healthcare services. However, small businesses may also be exempt from the legislation, depending on factors such as business size and how close they are to population centres. A business’s ability to handle cash will also determine eligibility, with the government hoping to introduce the mandate in 2026. The reduction of cash payment options has been a point of contention recently.
More than 6000 ATMs have been removed in the past five years as digital payments have become more popular. (Getty) Australia lost about 200 bank branches last financial year, and more than 6000 ATMs have been removed in the past five years as digital payments have become more popular. Currently, companies can choose which payment methods they accept – in effect they can refuse cash. If you want to pay with a debit or credit card, they can legally charge you extra. The bosses of the country’s biggest banks recently backed a ban on credit card surcharges. Banning Excessive Surcharges.
Plea to big banks as cheque plan released
Meanwhile, the government said it aims to stop issuing cheques by June 30, 2028, and to stop accepting them by September 30, 2029. Finance Minister Jim Chalmers said he had written to the chief executives of the major banks to ensure they continue to support customers in cashing cheques until cheque cashing is phased out.
The government previously announced that they plan to phase out cheques by June 2023. (9) But ANZ has already stopped issuing cheque books to customers. Other banks, including CBA, NAB, Macquarie Bank and Bendigo Bank, have already begun phasing out cheques. Cheque usage in Australia has fallen by 90% over the past decade, and cheques now account for only 0.2% of non-cash retail payments.