Australian Retailers Face New Cash Acceptance Rules as Government Mandates In-Store Cash Payments

The Australian Government has implemented new cash acceptance rules that require many retail operators — particularly fuel and grocery retailers — to accept cash for certain in-person purchases. The policy, which came into force at the beginning of 2026, represents a rare and deliberate government intervention to protect access to cash in an economy where digital payments have become dominant.

The changes have significant implications for major supermarkets, petrol station chains and retailers across the country, prompting both operational adjustments and broader debate about the role of cash in a modern, increasingly digital payments landscape.

What the New Cash Rules Say

Under the new regulations, fuel and grocery retailers are required to accept cash payments for in-person transactions up to AUD 500 made between 7 a.m. and 9 p.m. on business days. The mandate is designed to ensure that Australians who rely on cash — including older individuals, residents without easy access to electronic payments, and those concerned about digital system outages — can still pay for everyday essentials without being excluded.

Key points of the mandate include:

• Mandatory cash acceptance for in-store purchases valued at AUD 500 or less during 7 a.m.–9 p.m. (local time).
• Retailers subject to the rule include most fuel stations and grocery stores, from major chains to many larger independents.
• Retailers may refuse cash outside these hours or for transactions above AUD 500.
• Small businesses with turnover under AUD 10 million are exempt — unless they operate under the trademark or brand of a larger retailer.

The policy will run for a three-year period, after which it will be reviewed to assess its effectiveness and consider potential expansion or modification.

Policy Background: Why Mandate Cash Acceptance?

Australia has seen a long-term decline in cash usage as contactless cards, mobile wallets and digital payment methods have become ubiquitous. But cash remains an important payment option for many Australians, particularly the elderly, low-income households, people in regional areas, and individuals without access to up-to-date digital devices.

Prior to these new rules, no legal requirement existed for retailers to accept cash at the point of sale — even though cash is still considered legal tender for settling debts. That gap had allowed some businesses to operate as “card-only,” declining to accept notes and coins altogether.

Treasurer Jim Chalmers and the government have framed the cash acceptance mandate as a practical measure to preserve financial inclusion and consumer choice — especially as the shift toward electronic payments accelerates. Chalmers noted that customers deserve the ability to pay with cash if they need to when purchasing everyday essentials.

Who Is Affected — and Who Isn’t

The new cash rules apply primarily to:

• Fuel retailers and petrol stations with in-store sales.
• Grocery retailers and supermarkets, including major chains and some independents.

However, the rules do not apply to all retailers. Some exemptions and carve-outs include:

• Small independent businesses with under AUD 10 million in annual turnover — these retailers are generally exempt unless operating under a larger trademark or brand system.
• Purchases above AUD 500, which retailers are permitted to refuse in cash.
• Transactions in certain time windows outside the 7 a.m.–9 p.m. mandate period.

Retailers’ Operational Challenges and Response

For many supermarkets, petrol stations, and other affected retailers, the new requirement means operational changes are needed. These include:

• Ensuring cash tills and floats are stocked and serviced throughout the hours of mandatory acceptance.
• Training staff to handle cash transactions correctly.
• Updating point-of-sale systems and processes to ensure compliance.
• Managing security and cash handling costs, including transport and risk mitigation.

Large national chains such as Coles and Woolworths have been highlighted in news coverage as needing to comply with the rules, which has attracted both support and criticism in public debate. Supporters say the mandate protects vulnerable consumers, while critics caution that cash handling costs and safety considerations may burden retailers.

Consumer and Advocacy Perspectives

Consumer advocacy groups have welcomed parts of the policy, noting that cash continues to be a lifeline for many Australians. A large survey by CHOICE — a consumer rights organisation — found that a significant proportion of Australians still use cash for essential goods and argue that mandating cash acceptance helps protect consumer rights in an era of rapid digital payment adoption.

However, some critics argue that the mandate doesn’t go far enough to preserve cash access across the broader retail economy, contending that exemptions and narrow transaction limits undermine the policy’s intent. Others worry that enforced cash acceptance might increase costs or operational complexity for smaller retailers.

Broader Context: Cash Usage Trends in Australia

Australia’s payments landscape has rapidly changed over the past decade. Consumers increasingly favour contactless cards and mobile wallets for convenience, speed and hygiene — particularly since the COVID-19 pandemic. Data suggests that cash transactions have declined significantly, even though cash is still used for certain purchases.

Despite this trend, cash remains essential for certain groups — including older Australians, people without bank accounts, and individuals in remote or regional areas where digital infrastructure or adoption may be limited. Advocates argue that maintaining cash acceptance is necessary to prevent digital exclusion and ensure equitable access to basic goods and services.

Economic and Policy Implications

The mandate underscores the government’s acknowledgment of payment inclusion as a public interest issue. By requiring cash acceptance for certain essential purchases, policymakers are seeking to strike a balance: preserving consumer choice and access without fully reverting to a world where cash is universally required.

The policy’s three-year sunset review will allow the government to assess the mandate’s impact on both consumers and businesses and determine whether the scope should be expanded, narrowed, or adjusted in response to changing payment habits and industry feedback.

Looking Ahead

Implementation and compliance monitoring will be key focus areas in 2026 as retailers adapt to the new rules. Consumer groups, retailers and business associations are likely to continue debating the balance between digital payment convenience and cash access rights — especially as Australia’s payments ecosystem continues to evolve.

How the mandate affects customer behaviour, retail operations and broader payment trends will be observed closely, and the outcome of the three-year statutory review will guide future policy.