The Federal Government will mandate that businesses must accept cash when selling essential items such as fuel and groceries.
Recent data shows that cash is the preferred method of payment for around 1.5 million Australians, and while 94 per cent of businesses accept cash, the Federal Government wants to ensure that there is an ongoing place for cash in society.
In a joint statement Treasurer Jim Chalmers and Assistant Treasurer and Minister for Financial Services Stephen Jones said that treasury will commence consultation before the end of 2024 on which businesses supplying essential goods and services should be covered by the mandate.
“The consultation will consider 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.
“It will also cover what further steps are required to ensure the long-term and sustainable distribution of cash to enable adequate access.”
Details of the mandate will be announced in 2025, with implementation expected to commence on 1 January 2026.
Also announced was the government’s Cheque Transition Plans, which aims to phase out cheques in an orderly and planned way.
Under the Plan, cheques will only stop being issued by 30 June 2028 and stop being accepted on 30 September 2029, with the usage of cheques declining by 90 per cent in the last ten years and many banks and financial institutions are ending cheque issuance for new customers.
“To manage this industry trend, the Government is acting to give customers and businesses the certainty and the assistance they need to switch to other payment methods.
“The release of the Plan follows extensive discussion with cheque users, financial institutions and other key stakeholders over the past 12 months,” the statement explained.
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