What is it and how does it work, explained

“This will help to ensure Australians can continue to pay with cash for essentials if they want to.”

But the landmark mandate won’t apply to all businesses.

Here’s what you need to know about Australia’s cash mandate and how it will work.

What is the cash mandate in Australia, and how will it work?

Under the new cash mandate, businesses that sell fuel and groceries must accept cash payments for these essential purchases.

The mandate will mostly apply to retailers like supermarkets and service stations.

“You should be able to pay with cash if you need to, and that’s what these regulations are all about,” Chalmers said.

However, there will be some exceptions.

Retailers only have to accept cash payments for in-person purchases of $500 and less.

The transaction must also made between the hours of 7am and 9pm.

Retailers can refuse cash for purchases made outside those hours, or for transactions of more than $500.

Small businesses with aggregate annual turnover under $10 million will be exempted from the cash mandate.

The mandate will still apply to small businesses that choose to share a trademark with a larger retailer.

Australian consumers also retain the right to pay bills with cash at their local Australia Post outlet through Post Billpay.

This includes utilities, phone bills and council rates.

When does the cash mandate start?

The official cash mandate start date in January 1, 2026.

That means most businesses that sell groceries or fuel must accept cash for in‑person transactions of $500 or less starting from 7am on New Year’s Day.

Is it legal to refuse cash payments in Australia?

It is still legal for businesses that don’t sell fuel and groceries to refuse cash payments in Australia.

It is also legal for small businesses that sell those essentials but are exempt from the cash mandate to refuse cash payments.

Will Australia ever go cashless?

It’s unlikely that Australia will go totally cashless, at least while this new cash mandate is in effect.

Chalmers said the mandate will run for three years, at which point the government will review it to ensure it is functioning as intended.