How Treasurer Chalmers plans to keep cash circulating in Australia

Treasurer Jim Chalmers has mandated businesses selling essential goods and services to accept cash from customers, in a bid to support people who use cash as a “lifeline”.

The government mandate will take effect from 1 January 2026, to ensure people who rely on cash can still use it in the near future.

The mandate will have exemptions including many small businesses.

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Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones said in a joint statement that while people are increasingly using digital payment methods, there is an ongoing place for cash in Australia.

“Mandating cash for essential purchases, such as groceries and fuel, means those who rely on cash will not be left behind. For many Australians, cash is more than a payment, it’s a lifeline,” the statement said.

Chalmers told RN Breakfast there are about 1.5 million Australians who still rely primarily on cash.

He said about 94 per cent of businesses accept cash, 5 per cent less since early 2020.

The ministers have also confirmed that cheques will no longer be issued after 30 June 2028 and no longer accepted as legal tender after 30 September 2029.

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