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'Cash mandate' that might not mandate much: What Australia's new rules really mean for your wallet

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'Cash mandate' that might not mandate much: What Australia's new rules really mean for your wallet

Screenshot 2025-10-22 at 07.53.42.png 'Cash mandate' that might not mandate much: What Australia's new rules really mean for your wallet
Australia's long-awaited legislation to protect cash payments has critics calling it 'garbage' that will actually 'greenlight the cashless society.' Image source: Melissa Walker Horn / Unsplash.

The government calls it a 'cash mandate,' but critics say it's anything but mandatory.



Treasurer Jim Chalmers had promised to introduce legislation protecting cash payments, but the draft proposal released on Friday revealed a number of carve-outs and exemptions that have infuriated advocates.



So what's all the fuss about? And more importantly, what does this mean for the millions of Australians who still prefer to pay with notes and coins?





What the 'mandate' actually mandates



The federal government announced the mandate will commence from January 1, 2026, but the devil is definitely in the detail. The mandate will apply to fuel and grocery retailers as this will best meet consumer expectations to be able to pay for essential goods in cash.




That sounds reasonable enough, until you dig into the extensive list of exemptions. The rules exempt small businesses with aggregate turnover of under $10 million, or, if the business is part of a franchise arrangement, the franchise arrangement's turnover is under $10 million.



The proposed rules would not apply to small businesses, meaning 'the mandate would exempt all small businesses with turnovers below $10 million from having to accept cash.' Financial Services Minister Daniel Mulino said the policy 'will deliver a balanced, practical and sensible step to support cash users and give consideration to businesses.'



In plain English? Your local café, bookshop, pharmacy, or even many medium-sized retailers won't be required to accept your cash at all.








'This cash mandate is garbage. This cash mandate will herald the cashless society in Australia.'

Jason Bryce, Cash Welcome campaign, 2GB Radio



Bryce also told 2GB’s Ben Fordham: “This just greenlights the cashless society. This cash mandate is garbage. This cash mandate will herald the cashless society in Australia.'

He added, 'Tt doesn’t apply to any small business. It doesn’t apply to any other big business except large supermarkets and large petrol stations.'



But even for the big supermarkets and petrol stations that are covered, there are significant catches.



According to the draft legislation, 'Payments are limited to $500, meaning big businesses could refuse to accept cash for purchases above that figure.'



The rules also specify that “in determining whether the consumer has a reasonable opportunity for the purposes of subsection (paying with cash), regard is to be had to whether the number (which must be at least one) of cash payment points operating at the retail site when the payment is to be made is reasonable and proportionate.”



Why this matters if you're over 60



If you're thinking this sounds like a lot of political theatre over something that might not affect you much, think again. Approximately 1.5 million Australians rely on cash for over 80 per cent of their in-person transactions, and the government's plan ensures that these individuals can continue to participate fully in the economy.



Older Australians make up a significant portion of those 1.5 million people, and the numbers tell a concerning story about cash access. Data from the Australian Prudential Regulation Authority show that the number of bank branches declined by nearly 50 per cent between 2011 and 2024, with 230 branches closing over the year to June 2024. While most branch closures were in major cities, over one-quarter were in regional and remote areas of Australia.










Cash access points declining rapidly


Since 2011, Australia has lost nearly half of all bank branches—that's 3,239 branches gone. Regional areas have been particularly hard hit, making it increasingly difficult for older Australians to access cash when they need it.




The loopholes that have advocates fuming



Jason Bryce, who leads the Cash Welcome campaign, didn't mince words when he appeared on 2GB radio. He called the proposed rules 'so full of loopholes, it's ridiculous,' pointing out that they don't apply to any small business or most large businesses outside supermarkets and petrol stations.



He told NewsWire the legislation 'was so full of loopholes, it’s ridiculous.'



'It doesn’t apply to any small business,' he said. 'It doesn’t apply to any other big business except large supermarkets and large petrol stations.'/p]



Source: The Project / Youtube.



The exemptions are quite extensive. Large businesses can even apply for waivers if they can demonstrate that accepting cash poses a 'significant risk' to their ongoing viability. They also only need to maintain cash payment points proportionate to consumer demand—which could mean just one cash register in a massive store, potentially creating long queues for cash users.



The draft legislation also allows exemptions for big businesses 'if it is found that the costs associated with the retailer complying with the cash mandate poses a significant risk to the ongoing feasibility of the supermarket business carried on by the retailer.'



Financial Services Minister Daniel Mulino defended the approach, saying it delivers a balanced, practical and sensible step to support cash users and give consideration to businesses while minimising the costs and risks to businesses.



Mulino also said, 'The mandate will apply to fuel and grocery retailers as this will best meet consumer expectations to be able to pay for essential goods in cash while minimising the costs and risks to businesses.'







What seniors groups are saying



COTA Australia welcomed anything that protects people's ability to pay with cash, but emphasised that the details of the mandate will be key, with Ms Sparrow saying 'The consultation process needs to be very robust and include the voice of older Australians at the centre of it.'



This highlights a crucial point—while the government talks about protecting vulnerable consumers, the consultation process needs to genuinely hear from those who will be most affected by these changes.




What the cash mandate means for you



  • Only applies to large supermarkets and petrol stations (over $10 million turnover)

  • Capped at $500 transactions

  • Small businesses, cafés, shops can still refuse cash completely

  • Takes effect January 1, 2026

  • Will be reviewed after 3 years




Digital payments aren't always reliable



There's another angle to this story that often gets overlooked. Australia is subject to recurring natural disasters such as bushfires, floods and cyclones, which can knock out digital payment systems when people need them most.









Remember the widespread outages that have hit major banks and payment systems in recent years? When the power's out or the internet's down, cash still works. It's this reliability factor that makes many older Australians prefer to keep some notes and coins handy.



What happens next?


The proposed mandate is now open for public submissions. If approved, it is expected that the new rules will come into effect in January next year, according to the draft released by Treasury.



Public consultation on exposure draft legislation is expected to occur in the third quarter of 2025, with legislation expected to be introduced into Parliament in the fourth quarter of 2025.



The government will review the mandate after 3 years, to ensure it is functioning as intended, considering whether the mandate should be expanded, its impact on businesses, and any developments in cash distribution and access.



Meanwhile, there's another piece of legislation worth watching. An Independent MP has proposed the Keeping Cash Transactions in Australia Bill 2024, which would require businesses operating in face-to-face settings to accept cash payments for transactions that do not exceed $10,000, with fines of up to $25,000 for non-compliance.









The bottom line for your wallet



Despite being called a 'cash mandate,' the legislation is more like 'cash optional' for most businesses. If you prefer paying with cash, you'll still be able to do so at major supermarkets and petrol stations, but don't expect your local coffee shop or boutique to be required to accept your notes and coins.



Australia Post's Billpay service remains available at post offices across Australia and is relied on by businesses and government agencies, including utility providers—so you can still pay bills in cash even if other services go digital.



Did you know?


Did you know?
You can still pay most bills in cash at any Australia Post office through their Billpay service, including utilities, phone bills, and council rates. This service isn't affected by the new mandate and remains available regardless of what other businesses decide to do about cash acceptance.



The government insists that while Australians are increasingly using digital payment methods, there will be an ongoing place for cash in society under the Albanese Government. Whether this limited mandate delivers on that promise remains to be seen.



p]Mulino added that 'consumers already have the option to pay their bills, including utilities, phone bills and council rates, in cash at their local Australia Post outlet through Post Billpay on the current terms of this service.'



As one cash advocate put it, this might be less about protecting cash and more about being seen to protect cash. For the millions of Australians who still prefer the certainty of notes and coins in their wallet, that distinction could make all the difference.



What's your take on the cash mandate? Do you think the government's approach strikes the right balance, or are the exemptions too generous? Have you noticed more businesses in your area going cashless? Share your experiences in the comments below—your voice could help shape how this policy develops.




  • Primary Source


    https://www.news.com.au/finance/mon...f1c44aab57e5eebb603bc22b0571ae?from=rss-basic





  • Mandating cash for essential goods and services long overdue, crucial reform: COTA Australia—COTA Australia

    Cited text: The Federal Government today announced that it will mandate that businesses must accept cash when selling essential items like groceries and fuel, wit...


    Excerpt: The federal government announced the mandate will commence from January 1, 2026



    https://cota.org.au/news/mandating-cash-for-essential-goods-and-services-reform/





  • Access to Cash in Australia | Bulletin—January 2025 | RBA

    Cited text: The mandate is proposed to commence from 1 January 2026.


    Excerpt: The federal government announced the mandate will commence from January 1, 2026



    https://www.rba.gov.au/publications/bulletin/2025/jan/access-to-cash-in-australia.html





  • Mandating cash acceptance a step closer | Treasury Ministers

    Cited text: The mandate will apply to fuel and grocery retailers as this will best meet consumer expectations to be able to pay for essential goods in cash, while...


    Excerpt: The mandate will apply to fuel and grocery retailers as this will best meet consumer expectations to be able to pay for essential goods in cash



    https://ministers.treasury.gov.au/m...eleases/mandating-cash-acceptance-step-closer





  • Mandating cash acceptance a step closer | Treasury Ministers

    Cited text: ... exempt small businesses with aggregate turnover of under $10 million, or, if the business is part of a franchise arrangement—the franchise arran...


    Excerpt: The rules exempt small businesses with aggregate turnover of under $10 million, or, if the business is part of a franchise arrangement, the franchise arrangement's turnover is under $10 million



    https://ministers.treasury.gov.au/m...eleases/mandating-cash-acceptance-step-closer





  • Cash and Cheque Modernisation Australia: Key Updates

    Cited text: Approximately 1.5 million Australians rely on cash for over 80 per cent of their in-person transactions. The government's plan to mandate cash acceptance for ...


    Excerpt: Approximately 1.5 million Australians rely on cash for over 80 per cent of their in-person transactions, and the government's plan ensures that these individuals can continue to participate fully in the economy



    https://www.mcbainmccartin.com.au/2024/12/10/client-alert-december-2024-january-2025/





  • Access to Cash in Australia | Bulletin—January 2025 | RBA

    Cited text: Data from the Australian Prudential Regulation Authority (APRA) show that the number of ADI branches declined by nearly 50 per cent (3,239 branches) b...


    Excerpt: Data from the Australian Prudential Regulation Authority show that the number of bank branches declined by nearly 50 per cent between 2011 and 2024, with 230 branches closing over the year to June 2024



    https://www.rba.gov.au/publications/bulletin/2025/jan/access-to-cash-in-australia.html





  • Access to Cash in Australia | Bulletin—January 2025 | RBA

    Cited text: While most ADI branch closures were in major cities, over one-quarter were in regional and remote areas of Australia.


    Excerpt: While most branch closures were in major cities, over one-quarter were in regional and remote areas of Australia



    https://www.rba.gov.au/publications/bulletin/2025/jan/access-to-cash-in-australia.html





  • Mandating cash for essential goods and services long overdue, crucial reform: COTA Australia—COTA Australia

    Cited text: Ms Sparrow said that while anything that protects people’s ability to pay with cash is welcomed, the details of the mandate will be key. “The consulta...


    Excerpt: COTA Australia welcomed anything that protects people's ability to pay with cash, but emphasised that the details of the mandate will be key, with Ms Sparrow saying 'The consultation process needs to be very robust and include the voice of…



    https://cota.org.au/news/mandating-cash-for-essential-goods-and-services-reform/





  • Mandating cash acceptance Consultation paper December 2024

    Cited text: While these figures show a high level of overall availability, when outages do occur they can be highly ... Australia is subject to recurring natural ...


    Excerpt: Australia is subject to recurring natural disasters such as bushfires, floods and cyclones



    https://treasury.gov.au/sites/default/files/2024-12/c2024-604832-cp.pdf





  • Mandating Cash Acceptance: Consultation Paper—Law Council of Australia

    Cited text: The Consultation Paper indicates that public consultation on exposure draft legislation is expected to occur in the third quarter of 2025, with legisl...


    Excerpt: Public consultation on exposure draft legislation is expected to occur in the third quarter of 2025, with legislation expected to be introduced into Parliament in the fourth quarter of 2025



    https://lawcouncil.au/resources/submissions/mandating-cash-acceptance-consultation-paper





  • Mandating cash acceptance a step closer | Treasury Ministers

    Cited text: The Government will review the mandate after 3 years, to ensure it is functioning as intended where it matters most.This review will consider whether ...


    Excerpt: The government will review the mandate after 3 years, to ensure it is functioning as intended, considering whether the mandate should be expanded, its impact on businesses, and any developments in cash distribution and access



    https://ministers.treasury.gov.au/m...eleases/mandating-cash-acceptance-step-closer





  • Legal tender: bid to enshrine cash use—National Seniors Australia

    Cited text: “The Keeping Cash Transactions in Australia Bill 2024 will remedy this by legislating that businesses operating in face-to-face settings must offer to...


    Excerpt: An Independent MP has proposed the Keeping Cash Transactions in Australia Bill 2024, which would require businesses operating in face-to-face settings to accept cash payments for transactions that do not exceed $10,000, with fines of up to…



    https://nationalseniors.com.au/news/latest-news/legal-tender-bid-to-enshrine-cash-use





  • Mandating cash acceptance a step closer | Treasury Ministers

    Cited text: Billpay is available at post offices across Australia and is relied on by businesses and government agencies, including utility providers and governme...


    Excerpt: Australia Post's Billpay service remains available at post offices across Australia and is relied on by businesses and government agencies, including utility providers



    https://ministers.treasury.gov.au/m...eleases/mandating-cash-acceptance-step-closer





  • Mandating cash acceptance a step closer | Treasury Ministers

    Cited text: We recognise that Australians are increasingly using digital payment methods, but there will be an ongoing place for cash in our society under the Alb...


    Excerpt: that while Australians are increasingly using digital payment methods, there will be an ongoing place for cash in society under the Albanese Government



    https://ministers.treasury.gov.au/m...eleases/mandating-cash-acceptance-step-closer



Last edited:

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Bloody technology again, its good for something but not for the rest, give me cash, how can we donate to charities such as Anzac Red cross etc.
 
If you have a Commonwealth Home Care Package and your registered carer does your shopping for you it is compulsory to give them cash.
 
Once again, the government has its own agenda. Just another way of controlling us.
Well, I for one will be doing the same thing I did when Covet Pandemic was around, if you don't want to take my money, then I don't want to do business with you. I will put it whatever it is back and leave without the goods.
 
We have a stall at a monthly market. Our cheapest item is 50 cents and most expensive is $8. It amazes me how many people wishing to buy our products ask, 'You do accept cards don't you?'

Well, no we don't! I have no idea how much the banks charge traders who accept cards, but it is certainly not something we can consider. Who pays for an item costing, say $3, with their credit card? To my mind they must be quite mad! The moral is:

NEVER GO TO A LOCAL MARKET WITHOUGH CASH!!
 
I'm certainly not against having cash, except I feel it's an uncertain situation with Armaguard. They accepted a mega deal amount to keep going until next year. When that date ends, it's up the ACCC to decide.
 
We have a stall at a monthly market. Our cheapest item is 50 cents and most expensive is $8. It amazes me how many people wishing to buy our products ask, 'You do accept cards don't you?'

Well, no we don't! I have no idea how much the banks charge traders who accept cards, but it is certainly not something we can consider. Who pays for an item costing, say $3, with their credit card? To my mind they must be quite mad! The moral is:

NEVER GO TO A LOCAL MARKET WITHOUGH CASH!!
My local farmer's market stalls all have wireless eftpos, plus they accept cash as well. It depends what individual business deal is with their bank, due to eftpos varying business fees.
 
There is a simple solution to this cash problem if the business does not accept cash walk away, simples.
 
I only pay cash. If I go to a shop and hand over cash only to be told their business is cashless, I ask them where is the sign advising customers of that? By law they have to display it.
If no cash is accepted, this old bird is out of there and off to somewhere that accepts cash!
Exactly, if we walk away from shops that refuse cash they will change their tune.
 
Benefits of card government (or they in power) will know where you are - what you want - what you do lot of the time; starting to seem like dictatorship you accept or how will one explain getting money onto the card - won it on the horses
Is it still freedom of choice?? If Australia gets the continuous supply of cheap power power cards will work but when the power system stops and one cannot pay businesses shop will give you credit or do you go without and they lose trade ??? teaching young ones about cash can remember as a child when got couple pennies if you spend it now something better may come along
Maybe we should remember what Australia voted for in last election - promises ?? card hard to keep track of balances cash open purse or wallet you know what you have
 
Benefits of card government (or they in power) will know where you are - what you want - what you do lot of the time; starting to seem like dictatorship you accept or how will one explain getting money onto the card - won it on the horses
Is it still freedom of choice?? If Australia gets the continuous supply of cheap power power cards will work but when the power system stops and one cannot pay businesses shop will give you credit or do you go without and they lose trade ??? teaching young ones about cash can remember as a child when got couple pennies if you spend it now something better may come along
Maybe we should remember what Australia voted for in last election - promises ?? card hard to keep track of balances cash open purse or wallet you know what you have
I use both card and cash. I don't go to shops that charge me a 1% card fee. It's just as easy to keep a tally of expenditure with cards, as people can keep their receipts.
 
If a business does not accept cash then I wont be buying. I was in Denver when they had a spell of snow that was nit expected. Luckily for us we had had our dinner and almost ready to leave when the owner came out to advise everyone that he had good news and bad news. They already had lanterns operating as the power was out. They could not cook any more meals so those that had not eaten went hungry and we that had would not have to pay as they could not use the cash registers. They could not even take cash as they could not add the gst or whatever they it in USA.
 
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Just another thing with this only card. I went to y bank and asked about paying a donation to Telethon last year and they charged $4 transaction fee . There are lots of reasons why cash should be available
 
Just another thing with this only card. I went to y bank and asked about paying a donation to Telethon last year and they charged $4 transaction fee . There are lots of reasons why cash should be available
Did you mean the bank charged you $4 transaction fee to deposit your donation to Telethon account?
 
Did you mean the bank charged you $4 transaction fee to deposit your donation to Telethon account?
Yes they did without me realising until I checked my bank statement so this year not paying at my bank
 
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Yes they did without me realising until I checked my bank statement so this year not paying at my bank
That is ridiculous. Even happy to make a quid out of people's charitable donations.
Talk about corporate greed. Disgusting.
 
Yes they did without me realising until I checked my bank statement so this year not paying at my bank
Yes, they must have brought in charges these days. Many years ago, I used to go to the person's bank knowing their bank details, and deposit it directly into their account in lieu of my bank to transfer. The issue now is finding a bank close by for some people to do this.
 
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Maybe we should all write to our local member pressing for outlawing surcharges on cards (they make enough anyway) if they insist on going cashless.
 
Cash mandate capped at $500 is ridiculous. What can you buy for your home that is less than $500. What has happened to this country now that nearly everything is ruled with little or no freedom of choice left. While cash is legal tender I will continue to pay for as much as possible with cash which also helps me to manage my budget properly. It is no wander there is so much debt today when people can flash their card whenever they wish to purchase an item. If a business does not accept my cash, I will go and visit another business that will. Freedom of choice must prevail.
 
Cash mandate capped at $500 is ridiculous. What can you buy for your home that is less than $500. What has happened to this country now that nearly everything is ruled with little or no freedom of choice left. While cash is legal tender I will continue to pay for as much as possible with cash which also helps me to manage my budget properly. It is no wander there is so much debt today when people can flash their card whenever they wish to purchase an item. If a business does not accept my cash, I will go and visit another business that will. Freedom of choice must prevail.
The supermarkets only let us withdraw $200. ATM's fees are over the top for withdrawals, so that leaves us driving to the bank to withdrawal cash. Finding a nearest bank these days requires a 'spin the wheel' to land where one is situated. If I use a card, I always keep receipts for spenditure.
 
If you are paying anything near $36 a week you are going to the wrong retailers. I just went through my costs for the last month, $0.87, ONE MONTH. Groceries, fuel, chemist, gifts, clothes ALL have zero charges, eating out was the only one with charges on three transactions, the other had none.
It doesn't suit their agenda to tell the truth about the fees charged for card use. They are, as you pointed out, cents in a month, not dollars. I can't believe what conspiracy theorists these people are!
 
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