Starting January 2026, businesses selling important items like groceries, medicines, and fuel will have to accept cash payments from customers—unless they get a special exemption. This new rule is part of a government plan to ensure that people who still rely on cash can continue using it for essential purchases, even though more people are using digital payments.
Why is this happening? The government says cash is still important, especially for those who can’t easily use digital payment methods. For many people, especially in smaller towns or in tough times, cash is not just a way to pay—it’s a lifeline. The government wants to make sure that those who depend on cash aren’t left behind as the world becomes more digital.
Some businesses, like supermarkets, pharmacies, and petrol stations, are likely to be required to accept cash. This includes places where people rely on these goods and services regularly. But not every business will have to comply. Smaller businesses or those that are harder to access may be exempt from the rule. Treasury is consulting with experts to figure out exactly which businesses should accept cash.
One important thing to note: While cash will still be accepted for essential items, cheques are on their way out. They will no longer be a valid payment option after 2029. The government is planning a smooth transition away from cheques, just like they’re doing with cash, to help people move to more modern payment methods.
Why is this a big deal? Well, after the COVID-19 pandemic, fewer people were using cash, and digital payments grew rapidly. But in many countries, like those in Europe, governments are starting to require businesses to accept cash, especially for essential goods. In Australia, 1.5 million people still prefer cash for more than 80% of their in-person purchases. This is especially true for people living in rural areas, where digital payments can sometimes be hard to use.
Australia’s government wants to make sure the transition to more digital payments doesn’t leave anyone out, especially those in remote places or those who can’t use cards or apps. Cash might also be a backup in cases of blackouts or internet outages, so it’s important to keep it around for now.
The new rule is part of a bigger plan to modernize Australia’s payment system, making it easier and more efficient for everyone. But this isn’t just about technology—it’s about making sure that no one is left behind in the digital age. The government is also talking with major banks to make sure this shift happens smoothly.
So, while cash might be fading in some areas, it’s here to stay—for now—when it comes to the essentials. The question is, will your favorite store be ready to accept it when the new rule takes effect?
