Cash Mandate
One of the principal changes to Australian business law that has taken effect from the beginning of 2026 is the introduction of a cash mandate that requires certain businesses to accept cash for some types of transactions. This page outlines what is involved in the cash mandate and why it has been introduced.
Legislation
The Competition and Consumer (Industry Codes Cash Acceptance) Regulations 2025 were passed last year and took effect on 1 January 2026.
When retailers must accept cash
Under regulation 12, a supermarket or motor fuel retailer must ensure that a customer who makes an in person purchase during daytime hours (between 7 am and 9 pm) for an amount that is less than $500, must be given a reasonable opportunity to pay in cash.
A civil penalty of up to 600 penalty units applies for failing to adhere to this regulation.
Whether a reasonable opportunity has been given will be assessed based on:
- the number of cash payment points available
- the level of effort required to make a cash payment
- any other relevant matters.
Small business entities
A supermarket retailer or motor fuel retailer whose annual turnover for the last year was less than $10 million, or whose expected an annual turnover for the current year is less than $10 million, may be classed as a small business entity and may be exempt from the cash mandate.
Exemptions
A supermarket retailer may apply to the Competition and Consumer Commission for an exemption from the cash mandate.
The ACCC my grant an exemption if it is satisfied that there are exceptional circumstances that prevent the retailer from complying, and that it has taken all reasonable steps to comply; or because the cost of complying would pose a serious risk to the feasibility of continuing to carry on its business.
The ACCC may also grant an exemption from complying to a class of supermarket retailers if it is satisfied that there are exceptional circumstances that prevent it from complying and that it has taken all reasonable steps to comply.
Reasons for the changes
The regulations were introduced in response to a concern about the increasing difficulty of carrying out cash transactions and the impact this was having on people who rely on cash for doing their shopping – such as elderly people, homeless people, and those who do not have access to digital payment options. Prior to the cash mandate, a lot of businesses were introducing card-only payment models, which can exclude people who rely on cash.
The changes have also been pitched as a way of ensuring resilience and accessibility as cash provides an important fallback in during digital outages and disasters.
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Fernanda Dahlstrom is a writer, editor and lawyer. She holds a Bachelor of Laws (Latrobe University), a Graduate Diploma in Legal Practice (College of Law), a Bachelor of Arts (The University of Melbourne) and a Master of Arts (Deakin University). Fernanda practised law for eight years, working in criminal law, child protection and domestic violence law in the Northern Territory, and in family law in Queensland.