The Albanese government intends to require businesses to accept cash for essential purchases from 2026 as part of its strategy to phase out cheques. This move aims to support Australians who depend on cash, especially during emergencies such as natural disasters or digital outages.
Consultations by Treasury will begin later this year to define essential items and establish exemptions for small businesses based on their size and location. Key sectors likely affected include supermarkets, fuel stations, and healthcare services. Smaller businesses may be excluded if they lack the capacity to handle cash.
The push for digital payments has led to the closure of numerous ATMs and bank branches, which has sparked discussions around the decline of cash as a payment option. As it stands, businesses can currently choose which payment methods they accept, though they are permitted to charge extra for card payments, albeit with limits on excessive surcharges.
Additionally, the government plans to discontinue cheque usage altogether, ceasing the issuance of cheques by mid-2028 and halting their acceptance by September 2029. Major banks are being urged to continue supporting cheque cashing until this phase-out is completed, reflecting the significant 90 per cent decrease in cheque use over the last decade in Australia.