Treasury has published a consultation paper on a planned mandate for businesses to accept cash when selling essential items. There will be exemptions for small businesses.

The mandate is proposed to commence from 1 January 2026, subject to the passing of legislation.

Cash acceptance refers to the practice of businesses accepting cash as a form of payment for goods and services. There is currently no regulation that mandates businesses must accept cash as a means of payment.

The consultation focuses on the needs of those who rely on cash, including people in regional areas and those unable to use digital payments, as well as the impact on businesses, particularly small businesses.

The paper refers to research data which shows that while there is a high level of overall availability of electronic retail payment services, when outages do occur they can be highly consequential for people.

The mandate is proposed to apply to corporations supplying essential goods or services, that is goods or services that are purchased by consumers to meet absolute basic needs, are critical to maintaining day to day living arrangements, or are compulsory, for example, compulsory third party insurance required when a motor vehicle is registered..

The mandate is proposed to not apply where payment for an essential good or service may only be
made online, that is, where the consumer is not physically present and pays for the supply through an
e-commerce website (such as acquiring physical goods from an online store), a digital marketplace
(such as acquiring physical goods from a website offering the consumer multiple suppliers to choose
from), a mobile app (such as mobile apps for food delivery or ride sharing services), and digital services
(such as subscriptions for streaming services for entertainment or education or the purchase of
software downloaded to a phone or a computer).

It is proposed that an exempt small business be one that:

• if it is not part of a franchise arrangement – has aggregate turnover of under $10 million; or
• if it is part of a franchise arrangement – the franchise arrangement’s turnover is under
  $10 million.

The consultation will not consider issues related to: foreign exchange; the phasing out of cheques; credit or debit card surcharging; or issues related to the shadow economy.

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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.