The Australian Government has recently introduced new rules that compel many food and fuel businesses to accept cash payments.
The new cash transaction rules came into effect on 1 January.
What are the new rules?
The mandate applies to in-person transactions of $500 or less, made between 7am and 9pm at most fuel and grocery retailers.
Small businesses with aggregate annual turnover under $10 million will not have to comply with the rule. But the mandate will stand if they are a small business that shares a trademark with a larger retailer.
Retailers can refuse cash for purchases made outside those hours, or for transactions of more than $500.
The mandate will run for three years, at which point the government will review it to ensure it is functioning as intended.
What should businesses be doing?
Businesses will need to determine if they are required to accept cash, based on the type of retailer they are and whether the business is a small business. There is currently no universal, mandatory signage requirement for businesses to display.
For small businesses with an annual turnover of less than $10 million that choose not to accept cash, a key step will be to have turnover documented clearly to demonstrate the business is exempt.
For larger retailers, the cash mandate may mean reintroducing policies and processes for handling cash that had previously been phased out, or introducing new ways to streamline cash handling.
That may include:
- re-establishing cash floats and tills,
- updating staff training to handle, verify and deposit cash,
- more frequent bank deposits and
- reconciliation procedures.
Corporate regulator the Australian Competition and Consumer Commission (ACCC) will provide further guidance in 2026.
