Businesses must take cash for necessary services according to potential government rule.

The Albanese government has announced a new mandate that will require businesses to accept cash as a payment option for essential items starting in 2026. This decision comes as the government looks to phase out the use of checks in the country.

The main goal of this proposal is to ensure that all Australians, especially those who rely on cash during times of natural disasters or digital outages, will still be able to make necessary purchases. To ensure a smooth transition, the Treasury will begin consulting with businesses before the end of this year to determine how the mandate will be implemented. This includes determining which items will be considered essential and if there will be any exceptions for small businesses.

It is expected that essential items will include groceries and fuel, and major businesses such as supermarkets, banks, petrol stations, and healthcare services will be required to accept cash. However, smaller businesses may be exempt from this legislation based on factors such as their size and proximity to population centers. The ability of a business to handle cash will also be taken into consideration, with the government planning to fully roll out the mandate by 2026.

The decline in cash options in Australia has been a topic of discussion in recent times. Over the past year, the country has lost around 200 bank branches and over 6000 ATMs have been removed as digital payments become more prevalent. Currently, businesses are allowed to choose which payment methods they accept, and some are even permitted to decline cash. Additionally, businesses can legally charge extra fees for debit or credit card payments.

In light of this, the CEOs of major banks have expressed their support for a ban on credit card surcharges. The government has also released a plan to phase out checks by June 30, 2028, with businesses no longer accepting them by September 30, 2029. This date has been pushed back from the initial goal of June 2023.

Treasurer Jim Chalmers has reached out to the CEOs of major banks to ensure that they continue to support customers who prefer to use checks until they are phased out. However, some banks, such as ANZ, have already stopped issuing checkbooks to customers, and others, including CBA, NAB, Macquarie, and Bendigo Bank, have started to phase out checks.

Over the past decade, the use of checks in Australia has decreased by 90%, with only 0.2% of non-cash retail payments being made by check. To stay updated on all the latest news, sport, politics, and weather, be sure to download the 9News app, available on the Apple App Store and Google Play.

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