The Australian government is considering a cash mandate, requiring businesses to accept cash payments for essential goods and services starting in 2026. The proposal aims to ensure the continued circulation of cash in the economy.
Australia ns would be able to use cash to buy their groceries or clothes for their children but not a carton of beer from the local bottle shop under proposals being examined to ensure cash remains circulating in the economy. A discussion paper released on Friday by the government also signals businesses that provide essential goods and services could be allowed to accept a maximum payment in cash, or between certain hours of the trading day.
And firms could face both formal legal penalties from regulators and private class actions from aggrieved customers with the government concerned some businesses may try to impose a surcharge on people who pay with cash. Amid a collapse in the use of cash – which now accounts for less than 13 per cent of all transactions – and financial turmoil in the cash-moving industry, the government this year revealed it would mandate the use of cash from the start of 2026.While the nation does not have a standardised list of what constitutes an “essential business”, the discussion paper suggests supermarkets, pharmacies, department stores, dentists, GPs, hardware stores, third-party insurance providers, schools, pet stores and vets, petrol stations, utilities providers and car mechanics would fall under the definition. Supermarkets would have to offer cash payments to customers but bottle shops not under a planned cash mandate.Bottle shops, cafes, jewellers, takeaway food outlets and hairdressers would not be affected. Certain small businesses may be exempt from the mandate, depending on their turnover levels and the type of good or service they supply to consumers.The government is also considering the size of cash payments, and when they are accepted, as part of its mandate.One option is to apply a dollar limit which would allow affected businesses to accept cash up to a certain threshol
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