From 1 January 2026, new Australian regulations will require many retailers to accept cash for everyday in‑person purchases. This marks a significant shift for businesses that have moved toward cashless trading, and it’s designed to ensure people who rely on cash are not excluded from buying essential items like groceries and fuel as digital payments become more dominant.
Which businesses must accept cash?
Under the new rules, fuel and grocery retailers must accept cash for in‑person purchases of $500 or less made between 7am and 9pm. This applies primarily to supermarkets and service stations. Retailers may refuse cash for transactions outside these hours or for payments above $500.
Small business exemption
Small businesses with annual turnover under $10 million are exempt from the cash‑acceptance requirement. However, the exemption does not apply if the business shares a trademark or brand with a larger retailer – such as a franchise or branded service station. These businesses must accept cash regardless of their individual turnover.
Independent stores should keep clear records of their turnover and business structure to confirm whether they are exempt, while branded outlets should assume they must comply.
How long the rules apply
The cash‑acceptance mandate will run for three years, after which the government will review its effectiveness and decide whether to continue, change or expand the rules.
What retailers need to prepare
For many businesses, this change means reintroducing or strengthening cash‑handling processes. Retailers who removed cash drawers and floats will need to reinstate them and implement procedures for counting, reconciling and banking cash. Staff training will need to cover handling notes and coins, opening and closing floats, identifying counterfeit currency, managing refunds and responding to customer questions.
Security practices may also need reviewing, including how cash is stored, when deposits are made and how discrepancies are reported.
Point‑of‑sale systems should be updated to ensure cash payments are correctly recorded. Although there is no mandatory signage requirement, clear communication online and in‑store will help set expectations and reduce confusion at checkout.
Contractual and franchise considerations
Franchises, joint‑venture stores and businesses operating under a recognised brand may have existing contractual obligations around accepting and handling cash. Some brands require cash availability for services such as lotteries, postal transactions or ticketing. Ensuring store processes align with both the new regulations and existing agreements will help maintain compliance and consistency.
Cashflow and banking impacts
Accepting cash again may affect cashflow and banking routines. Businesses may need to make more frequent deposits, place additional change orders or budget for potential bank fees. Multi‑site retailers may find it helpful to set clear internal guidelines on float levels, variance thresholds and deposit frequency to maintain control without affecting operations.
How to get ready before 1 January 2026
Retailers can prepare by:
- Confirming whether the business is covered by the rules based on turnover and business activity
- Reviewing current payment processes and identifying what needs updating
- Reintroducing or improving cash floats, tills and banking procedures
- Updating staff training and store operating manuals
- Checking POS settings, contractual obligations and brand standards
- Communicating the store’s cash‑acceptance policy clearly to customers
- Monitoring the first few weeks after implementation and adjusting as needed
The bottom line
Cash acceptance is returning for essential purchases. By preparing early, businesses can avoid disruption, stay compliant and provide a smooth customer experience from day one. If you’d like help understanding your obligations or updating your store procedures, our team can assist with checklists, training materials and customer‑friendly communication templates tailored for your business.
