The Australian government plans to introduce a mandate requiring businesses to accept cash for essential items. This initiative aims to support those who rely on money and ensure the resilience of the payment system.
I don't know what an essential item is. I doubt anyone knows.
Many of my clients have given up on cash, but many more are committed to it.
Key Points of the Proposal
- Businesses selling essential items must accept cash payments
- Appropriate exemptions for small businesses The consultation period is open until 14 February 2025
- Proposed implementation date: 1 January 2026
Implications for Australian Retailers
While these policy objectives aim to protect consumers, they may present specific operational challenges for you.
Current Cash Usage Statistics
- 13% of transactions in Australia were made using cash in 2022
- 1.5 million Australians use cash for over 80% of in-person payments
- Up to 94% of businesses currently accept cash
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The Treasury seeks feedback from businesses like yours to shape the final policy.
If you want to supply feedback, here's how you can contribute:
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Review the consultation paper on the Treasury website here
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Submit your response by 14 February 2025
- Share your unique perspective
International Context
Similar cash mandates have been implemented in countries like Spain, France, Norway, Denmark, and some US states.
Stay Informed and Prepared
The retail landscape in Australia is evolving, and staying ahead of regulatory changes is crucial for your business success. This cash mandate could significantly impact your daily operations, from technology investments to staff management.
