With the ease and increased use of digital payments, many businesses have moved away from cash. Cash continues to play a vital role in modern payments, however there previously had been no regulation mandating businesses to accept cash as a form of payment.
1. New Cash Mandate
The Australian Government has introduced a new mandate starting 1 January 2026, requiring grocery and fuel retailers to accept cash between 7am and 9pm, with some exemptions. This applies to in-person transactions of $500 or less.
Supermarkets and fuel retailers exempt from these rules include:
- Small businesses earning less than $10 million per year
- Fuel retailers that do not regularly sell unleaded petrol
However, the mandate applies to small businesses that share a trademark with a large retailer.
From 1 July 2026, penalties will apply for non-compliance with these rules.
2. Reason for Implementation
The Government stated that the cash acceptance mandate for essential purchases allows the cash option to always be open for consumers who depend on cash, ensuring that they are not left behind.
This new mandate followed community feedback confirming grocery and fuel purchases as essential, and maintains access, fairness, and reliability in the payment system. This mandate is also important in payment system resilience, particularly when technology is disrupted during digital outages and natural disasters. The mandate will be reviewed by the Government after three years.
3. How to Protect Your Business with OpenLegal Services
With the introduction of the cash mandate, businesses must understand their obligations to accept cash payments. Businesses should review their payment policies, including cash-handling policies, assess whether the mandate applies to them, and ensure any compliance. Seeking legal advice to ensure practices are compliant is an effective way to mitigate the risk of being fined by the ACCC.
Contact OpenLegal today at enquiries@openlegal.com.au or 1300 937 574 for a confidential consultation to discuss your situation and explore the best path forward.
Anneka Tan, Intern at OpenLegal
