In an age where digital wallets and contactless payments are becoming the norm, it might seem like cash is on its way out.

However, for many Australians, particularly those over 60, cash remains an essential part of daily life.

Recognising this, the Australian government has taken a significant step to ensure that cash remains a viable payment option, especially for essential purchases.

The new mandate announced by Treasurer Jim Chalmers required businesses to accept cash for essential items.

This move safeguarded the interests of the 1.5 million Australians who use cash for more than 80 per cent of in-person payments.

Cash is being ensured as a viable payment method for essential items to support those who rely on banknotes. Credit: Unsplash

Before the COVID-19 pandemic, about 99 per cent of businesses accepted cash.

This number has since dropped to 94 per cent, indicating a shift towards digital payments.

However, the government's mandate will focus on essential items sold at supermarkets, pharmacies, and petrol stations, with specific exemptions for small businesses.

'We’re making cash an ongoing feature of our economy even as we modernise the payment system,' Dr Chalmers said.

'That’s because we understand that cash is a lifeline, a backup for many people, and it gives people security and peace of mind.'

The Treasury will begin consultations before the end of the year to determine which businesses supplying essential goods and services should be covered by the mandate.

These discussions will consider the needs of those who rely on cash, including individuals in regional areas and those unable to use digital payments, as well as the impact on small businesses.

The final details of the mandate, which will commence in January 2026, will be announced in 2025.

This gives businesses and consumers ample time to prepare for the changes.

In tandem with the cash payment mandate, the government is also initiating a Cheques Transition Plan.

This plan will phase out cheques, giving customers and businesses until 2029 to adjust to alternative payment methods.

Cheques will only be issued by June 2028 and no longer be accepted by September 2029.

This gradual transition acknowledges the 90 per cent decline in cheque use over the past decade and the fact that many banks and financial institutions are no longer issuing cheques to new customers.

The focus on regional Australia is particularly noteworthy, as the decline of banking services in these areas poses a significant challenge.

The treasurer has emphasised the government's commitment to maintaining decent access and services for Australians living in rural areas.

Key Takeaways

• The Australian government is ensuring that cash remains a viable payment method for essential items to support those who rely on banknotes.
• Treasurer Jim Chalmers mentioned that while 94 per cent of businesses accept cash, this figure has dropped from 99 per cent pre-pandemic.
• Consultations will start before the year ends to identify which businesses essential for supplying goods and services should adhere to the cash payment mandate, considering impacts on smaller businesses and people dependent on cash.
• Changes in the payment landscape include a phased-out plan for cheques, with full discontinuation by September 2029.

Do you prefer using cash for transactions, or have you embraced digital payments? How do you think this will impact your shopping habits for essentials? Share your experiences and opinions in the comments below.

 

[Herbie2404]

Why is it taking until 2026 to put this law in place ????

 

[darrellh]

It always takes the government monthsv if not years to implement things, absolutely incredibly snails pace.

 

[RealityCheck]

Why would a small business require an exemption?
I'd have thought they (& us) need protection from the card issuers cranking up the fees once cash is gone.

 

[Luckyus]

Why is it taking until 2026 to put this law in place ????

It's called the Ponderous Bollocks of the Bureaucracy.

 

[Dynamo]

I like to pay cash where possible. Card payments are easier but my information has been stolen twice. It's very stressful to have to change all direct debit info.

 

[Annna]

The government's cash mandate is aimed at compelling stores/service providers to accept cash for essential items.

Essential items only (see attached).

Essential items will be defined. (The definition will likely contain less items as time goes on).

It appears that cards and other tech options will be the only payment methods for everything else.

Cash for many things will be gone in the short term and will go for essential items after the demise of those currently deemed to need or want cash use.

Not looking for arguments, just my opinion.

 

[Annna]

I like to pay cash where possible. Card payments are easier but my information has been stolen twice. It's very stressful to have to change all direct debit info.

I agree and the banks do not at this time have the capacity to 100% protect against theft of money or ID.

 

[Annna]

I shake my head when friends and acquaintances say they love cashless payment options.

They say they chose these options.

I was a bank officer for over 2 decades and was compelled to sell various 'innovative' banking options.

I saw older folk moved on to tech options by banks' strategies to get customers out of branches dating back 40 years with ATM and FEE introductions.

Younger customers have opted for tech options due to the reduction of branches/personal banking options and in line with the times in which they were born.

Banks chose.

 

[mOiOz]

It saddens me to see how many people are scammed and even more so... that the majority are in the age bracket of the elderly!
We were never taught computers at school or used all this foreign technology of today. Learning how to at this at this stage of our lives is not easy with poor eyesight and reduced memory!

The pressure of forcing senior citizens to use technology is robbing them of their savings and creating hardship, not only from scammers, but also the unaffordable cost of the items required, that are barely used.
You can't teach an old dog new tricks, so stop biting the hands that fed you!

 

[freedy50]

And the question is "How do you think this will impact your shopping habits for essentials?"

The answer is it won't. I only use the card on my phone all the time. Much easier and quicker.

I'm certainly not going to carry around $50/60 of cash to pay for petrol than have the loose change on me for no reason. (If petrol is something like $50.42, and I give them $51, I don't want 58c loose change when the whole amount just goes on the card).

And they've still got this mania that "old people" prefer it. I know lots of old people that prefer living in the modern world and are very savvy with digital.

If the so called old people are having difficulties with it then there's plenty of places in every state where they can get guidance and what about their families helping them?

 

[freedy50]

It saddens me to see how many people are scammed and even more so... that the majority are in the age bracket of the elderly!
We were never taught computers at school or used all this foreign technology of today. Learning how to at this at this stage of our lives is not easy with poor eyesight and reduced memory!

The pressure of forcing senior citizens to use technology is robbing them of their savings and creating hardship, not only from scammers, but also the unaffordable cost of the items required, that are barely used.
You can't teach an old dog new tricks, so stop biting the hands that fed you!

"We were never taught computers at school or used all this foreign technology of today."

Well it has been taught for about the last 25/30 years. So that's a get out clause because no "old people" were taught it before that time?

Looks like you want two tiers of people? People that you allege can't use digital and people who can.

There's plenty of places to learn all this and why can't their families help them?

 

[Annna]

There seems to be a for cash Vs a for tech debate going on.

It's not about customers. They shouldn't be pointlessly arguing with each other.

Responsibility for the elimination of cash goes to banks and government.

 

[PattiB]

"We were never taught computers at school or used all this foreign technology of today."

Well it has been taught for about the last 25/30 years. So that's a get out clause because no "old people" were taught it before that time?

Looks like you want two tiers of people? People that you allege can't use digital and people who can.

There's plenty of places to learn all this and why can't their families help them?

I’ve actually taught myself, with help from my son. I’ve read manuals and practiced until I feel confident to proceed and of course working on an iPad is easier than an android. I’ve been shopping online for several years plus manage internet banking & whatever else I’ve wanted to do. My son switched us to Apple products & it’s certainly made life easier plus he’s only a phone call away if I have a problem. I’m all about adapting to the world we live in, despite often being discombobulated a lot of the time.

 

[I'm Mal]

Why is it taking until 2026 to put this law in place ????

Because if it is from liebour, it is a guaranteed lie. It is that simple.

 

[DLHM]

In democratic countries, there should be no rules or laws to dictate where and who can pay with cash or with card. Freedom to choose?

 

[magpie1]

It's about time that all of these bank charges are looked at, with the Government setting an absolute limit of maybe $2 for any card transaction. Stuff the banks and their greed.

 

[Phantom55]

And the question is "How do you think this will impact your shopping habits for essentials?"

The answer is it won't. I only use the card on my phone all the time. Much easier and quicker.

I'm certainly not going to carry around $50/60 of cash to pay for petrol than have the loose change on me for no reason. (If petrol is something like $50.42, and I give them $51, I don't want 58c loose change when the whole amount just goes on the card).

And they've still got this mania that "old people" prefer it. I know lots of old people that prefer living in the modern world and are very savvy with digital.

If the so called old people are having difficulties with it then there's plenty of places in every state where they can get guidance and what about their families helping them?

many old people have no families (im one) and have difficulty learning new tricks some of us dont know if they paid a bill or so memory fails as one gets older but then who cares , like you say if they cant learn ...bad luck. Thankfully rules are made considering ALL people . Remember old people looked after you when you were young and inexperienced and now their old you say "tough titty" wait til one of your young children can do something you cant (like with mobile phones) you may find when a 8 y.o.calls you stupid for your lack of knowledge

 

[Phantom55]

I’ve actually taught myself, with help from my son. I’ve read manuals and practiced until I feel confident to proceed and of course working on an iPad is easier than an android. I’ve been shopping online for several years plus manage internet banking & whatever else I’ve wanted to do. My son switched us to Apple products & it’s certainly made life easier plus he’s only a phone call away if I have a problem. I’m all about adapting to the world we live in, despite often being discombobulated a lot of the time.

you are indeed very fortunate to have a considerate and helpful family... a lot of folk do not. Part of the govt. job is to look after and consider those citizens that dont have such good fortune, yes they govern for them too

 

[PattiB]

many old people have no families (im one) and have difficulty learning new tricks some of us dont know if they paid a bill or so memory fails as one gets older but then who cares , like you say if they cant learn ...bad luck. Thankfully rules are made considering ALL people . Remember old people looked after you when you were young and inexperienced and now their old you say "tough titty" wait til one of your young children can do something you cant (like with mobile phones) you may find when a 8 y.o.calls you stupid for your lack of knowledge

I do get that some people have problems with technology, a lot of my friends do & I help if I can, especially ordering stuff online etc & a couple who are in their 90’s feel they’re just too old to be bothered & that’s fine. I’m grateful that I’m still able to take things in but the time will come. People should have a right to choose & not be belittled for their choices. After all learning complicated new things isn’t for everyone, though I know of a few younger adults who still haven’t been able to adapt. I hope you had a chat with the rather rude 8 y.o. Who called you stupid, mainly about respect & manners. I have chats with my 8y.o. great nephews about the same issues. I’m sure they think of me as grumpy aunty Pat, can’t imagine why.
Have a good day Phantom.