For years, businesses have steadily moved away from cash. Digital payments are fast, traceable, and reduce the risks associated with handling physical money. But Australia’s tap-and-go economy may soon need to make room again for notes and coins.
The Government has released draft regulations that would require certain retailers to accept cash payments, ensuring Australians can continue to access essential goods such as groceries and fuel. The proposal is designed to protect customers when technology fails – whether due to power outages, internet disruptions, or card system downtime – and to support those who still prefer to pay in cash.
While the changes won’t affect every business, they are a timely reminder that payment systems form part of your broader operational and cash flow strategy.
The proposed rules are targeted and relatively practical in scope. They will apply to fuel stations and grocery retailers, including both major supermarket chains and independent operators.
Key points include:
Cash acceptance will only be required for in-person transactions under $500
Businesses will not need to accept large cash payments for high-value items
The focus is on everyday essentials, not discretionary or bulk purchases
Importantly, businesses or franchise groups with annual turnover under $10 million will be exempt from the requirement. For many small businesses – such as local grocers, cafés, and independent retailers – this exemption reduces immediate compliance pressure.
The regulations are expected to commence from 1 January 2026, with a review scheduled after three years to assess how the system is working in practice.
For businesses near the threshold, having clear and accurate financial records will be critical. This is where good bookkeeping and regular review of turnover figures can help support your position if questions arise.
The move reflects a broader push to maintain fairness and resilience in Australia’s payment system.
While digital payments dominate, an estimated 10–15% of Australians still prefer to use cash, particularly older Australians and those in regional or remote areas. For these groups, cash remains a practical and familiar option.
There’s also a resilience factor. During natural disasters such as bushfires, floods, or extended power outages, electronic payment systems can fail. In those moments, cash becomes essential for both customers and businesses.
From a policy perspective, the goal is to preserve choice and ensure no one is excluded from accessing essential goods.
For larger retailers captured by the new rules, the shift may require revisiting processes that were phased out years ago. This could include:
Re-establishing cash floats and tills
Training staff in secure cash handling and verification
Increasing the frequency of bank deposits and reconciliations
Each of these steps has time, cost, and cash flow implications, particularly where staffing is already tight.
For businesses that fall under the $10 million exemption, the priority will be ensuring your turnover is clearly documented and defensible. Strong record-keeping and accurate reporting support not only compliance, but broader planning conversations around growth and structure. This often ties into a wider business and cashflow plan, especially for businesses approaching key thresholds.
There may also be a commercial upside. Accepting cash could re-engage customers who have drifted away as stores went fully digital, particularly in regional areas where cash use remains more common. Some businesses may even choose to actively promote “cash welcome” as a point of difference.
With final regulations expected before the start date, now is a good time to review where your business sits.
Consider:
Whether your business type and turnover are likely to fall within scope
Whether your current systems could support cash handling if required
The potential costs and operational impact of reintroducing cash processes
If you are exempt, make sure your records clearly support that position. If you are likely to be captured, look for ways to streamline cash handling, such as digital cash counters or smart safes that reduce manual handling and reconciliation time.
These decisions are best made alongside broader operational and financial planning, rather than as last-minute compliance responses.
Cash may not be the dominant payment method it once was, but it’s not disappearing any time soon. This proposed reform is about maintaining access, resilience, and choice in how Australians pay, while ensuring essential services remain available when technology lets us down.
If you’d like help assessing how these rules could affect your operations, or understanding what the exemption means for your business, contact our team to review your position and plan your next steps with confidence.