The Albanese Government Mandates Businesses to Accept Cash for Essential Items from 2026
The Albanese government has announced its plan to mandate that businesses must accept cash for essential items starting in 2026, while also expanding on its strategy to phase out cheques. This proposal is aimed at ensuring that Australians who rely on cash, especially in times of natural disasters or digital outages, will still be able to make purchases.
Consultation Process and Essential Items Definition
Before the end of this year, Treasury will begin a consultation process to determine how the mandate will work. This includes defining what constitutes essential items and considering exceptions for small businesses. It is likely that essential items will include groceries, fuel, and other basic necessities.
- Major businesses affected by this mandate may include supermarkets, banking services, petrol stations, and healthcare facilities.
- Smaller businesses could potentially be exempt from the legislation based on factors such as size and proximity to population centers.
- The capacity for a business to handle cash will also play a role in determining eligibility for the mandate.
Debate Over Decrease in Cash Options
The decrease in cash options has been a topic of debate in recent times, with Australia witnessing the closure of about 200 bank branches in the last financial year. Additionally, over 6000 ATMs have been removed over the past five years as the country shifts towards digital payments.
Currently, companies have the freedom to choose the types of payments they accept, and they can even refuse to accept cash. Furthermore, there are instances where businesses are legally allowed to charge extra fees for debit or credit card payments, although excessive surcharges are prohibited.
Plea to Big Banks Regarding Cheque Phase-Out
Aside from the cash mandate, the government also plans to eliminate cheques by June 30, 2028, and cease accepting them by September 30, 2029. Treasurer Jim Chalmers has reached out to the CEOs of major banks to ensure continued support for customers who rely on cheques until they are phased out.
- ANZ has already ceased issuing cheque books, while other banks like CBA, NAB, Macquarie, and Bendigo Bank have begun the process of phasing out cheques.
- Cheque usage in Australia has plummeted by 90% over the past decade, now accounting for only 0.2% of non-cash retail payments.
Conclusion
The Albanese government’s decision to mandate businesses to accept cash for essential items from 2026 reflects a commitment to ensuring financial inclusivity for all Australians. As the country moves towards a digital economy, the government is also taking steps to phase out cheques, aligning with modern payment trends.
FAQs
What is the purpose of mandating businesses to accept cash for essential items?
The mandate aims to ensure that individuals who rely on cash, especially in emergencies or during digital outages, have access to essential goods and services.
How are small businesses affected by the cash mandate?
Small businesses may be exempt from the legislation based on factors like size and proximity to population centers. The capacity to handle cash will also impact their eligibility.