The Cash Comeback!

Cash may be making a comeback in Australia, with proposed legislation set to come into effect in January 2026.

Right now, despite being legal tender, there is actually no law that states any business must accept cash as payment. Businesses are free to choose which kind of payment methods they accept, and they can opt to be completely cashless.

In November 2024, the Commonwealth Government announced it will mandate that businesses must accept cash when selling essential items, with "appropriate exemptions" for small businesses.

"Mandating cash for essential purchases, means those who rely on cash will not be left behind," Treasurer Jim Chalmers said.

"People are increasingly using digital payment methods, but there will be an ongoing place for cash in our society under the Albanese government."

Treasury consulted on the mandate from December 2024 and February 2025, focusing on cash users in regional areas and small businesses.

As part of consultation, Treasury visited Darwin, Townsville, Mildura and Ballarat, to ascertain community views and feedback on the proposed mandate.

Treasury is currently considering the outcomes of consultation, but the government has already flagged an exemption for small business, excluding those that have an aggregate turnover of $10 million per year.

"Final details of the mandate will be announced in 2025," a Treasury spokesperson said.

"Subject to the outcomes of consultation, the mandate would commence from January 1, 2026."

Cheques will stay in circulation for now, but their use is being phased out.

Cheques will no longer be issued nationwide after June 30, 2028, and no longer accepted after September 30, 2029, with some banks stopping the issue of cheques already.