Cash is Making a Comeback

For years, businesses have beenmoving away from cash -- and for good reason. Digital payments are quick,traceable, and cut down on the risk of theft or counting errors. But thattap-and-go world might soon have to make room again for notes and coins.

The Government has releaseddraft regulations that would require certain retailers to accept cash payments,to ensure Australians can still buy essential goods like groceries and fuel --even when technology fails. The change aims to stop people from being excludedwhen power, internet, or card systems go down, or when they simply prefer topay in cash.

Who will need to accept cash -- and who won't

The new rules are targeted and,importantly, practical. They will apply to fuel stations and grocery retailers-- including both major supermarket chains and independent operators -- butonly for in-person transactions under $500. That means a $700 tyre replacementor bulk farm supplies do not need to be accepted in cash. It is about theeveryday essentials.

If your business (or franchisegroup) has an annual turnover of less than $10 million, you will be exempt.That is good news for most small businesses such as family-run grocers, localcafes, and corner stores already managing tight margins and staffing challenges.

The regulations are expected totake effect from 1 January 2026, with a review after three years to assess howthe system is working in practice.

Why it's happening

The move comes as part of abroader push to maintain access and fairness in Australia's payment system.While most Australians are happy to tap their card or phone, around 10 to 15per cent still prefer to use cash -- particularly older Australians and thosein regional or remote areas.

There is also a resilienceangle. During bushfires, floods, or power outages, card networks can gooffline. In those moments, cash becomes essential.

What this means for your business

For larger retailers, thischange will mean dusting off cash-handling policies and reintroducing processesthat many have phased out. That may include:

• Re-establishing cash floats and tills
• Staff training on handling and verifying cash
• More frequent bank deposits and reconciliationprocedures

For small businesses that fallunder the $10 million exemption, the key step is to document your turnoverclearly so you can demonstrate that the exemption applies.

There may also be commercialupside. Accepting cash could attract customers who have drifted away as storeswent digital -- especially in regional areas where cash use remains strong.

Preparing for the change

Review your payment policies,assess whether the new rules are likely to apply to you, and budget for anysetup or compliance costs. If you are exempt, ensure your records arewatertight. If not, explore ways to streamline cash handling -- for example, usingdigital cash counters or smart safes to reduce errors and reconciliation time.

If you would like help assessinghow these rules could affect your operations, or what the exemption means foryour business, contact our team.

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