Australians will retain the right to use cash for essential purchases like groceries and fuel, thanks to a new mandate from the Albanese Government, which is also overseeing the gradual phase-out of cheques. Assistant Treasurer Stephen Jones outlined the dual strategy as part of broader efforts to modernise the nation’s payments system.
The Government’s cash mandate ensures businesses selling essential goods must accept cash payments, with certain exemptions for small businesses. The move aims to safeguard those who depend on cash, including regional Australians and people unable to use digital payment systems.
“Cash is more than a payment method—it’s a lifeline for many,” said Jones. Current data shows around 1.5 million Australians rely on cash for over 80 per cent of their in-person transactions, making its continued availability crucial. Additionally, cash serves as an indispensable backup during digital outages or natural disasters.
Countries such as Spain, France, and Denmark have introduced similar mandates, as have some US states. Consultation on implementing the Australian mandate will begin later this year, focusing on balancing the needs of cash users with the potential impact on businesses. Final details are expected by 2025, with the mandate taking effect on 1 January 2026.
The Government also unveiled its Cheques Transition Plan, setting timelines for phasing out cheque usage. Cheques will no longer be issued after 30 June 2028, and acceptance will cease by 30 September 2029. With cheque usage down 90 per cent in the past decade, banks have already begun scaling back availability for new customers.
To ensure a smooth transition, the Government expects major banks to assist cheque users in adopting alternative payment methods. “This is about providing certainty and support for customers,” Jones said. The plan follows a year of discussions with stakeholders, including financial institutions and cheque users.
These measures are part of the Government’s broader Payments Strategic Plan. The agenda includes tackling excessive surcharging, enhancing regulatory powers for the Reserve Bank of Australia to oversee emerging payment technologies, and transitioning away from outdated systems like the Bulk Electronic Clearing System. Since its election, the Government has also committed over $180 million to combat scams across the economy.
With these reforms, the Albanese Government aims to deliver a secure, inclusive, and efficient financial system that benefits all Australians.
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