From 1 January 2026, new Australian regulations will require many retailers to accept cash for everyday in‑person purchases, marking a significant shift for businesses that have moved toward cashless trading. The policy is designed to ensure people who rely on cash are not excluded from essential transactions as digital payments continue to dominate.
Under the mandate, fuel and grocery retailers must accept cash for purchases of 500 dollars or less made between 7 am and 9 pm. The obligation focuses on retailers whose primary business activity is selling essential goods, so supermarkets and service stations are the most affected. Retailers can refuse cash for transactions outside those hours or above the 500 dollar threshold.
A small business exemption applies for businesses with annual turnover below 10 million dollars, though franchisees and operators that share a trademark with a larger retailer are still required to accept cash. Independent operators should document their turnover and business structure carefully to demonstrate whether they are exempt, while branded outlets will need to comply regardless of their individual turnover.
The mandate will operate for an initial three‑year period before a formal review. This gives retailers a clear planning horizon while allowing the government to assess the practical impact and consider adjustments. In the meantime, businesses should treat the start date as firm and prepare accordingly.
Preparing for the change will require a return to robust cash handling processes. Retailers that removed cash floats and tills will need to reinstate them and update procedures for counting, reconciling and banking cash. Staff training should cover opening and closing floats, verifying notes and coins, managing refunds and cash‑backs, and responding to customer queries at the point of sale. Security practices may also need refreshing, including the timing and method of bank deposits, safe storage, and escalation paths if discrepancies arise.
Systems and signage warrant attention as well. Point‑of‑sale software should reflect the cash acceptance rules and capture accurate payment data for reconciliation. While a universal signage standard has not been mandated, clear communication at entrances, counters and websites can help avoid confusion and reduce friction at checkout. Retailers should update customer‑facing FAQs, receipts and digital channels so the cash policy is easy to understand.
Franchised and networked businesses will need to consider group policies and contractual obligations alongside the mandate. In many cases, brand standards or supplier agreements already specify cash handling requirements, cash‑based services or payout rules. Aligning the store’s operating procedures with both legal obligations and commercial contracts will reduce compliance risk and improve consistency across locations.
The shift will also impact cashflow and banking routines. More frequent deposits, additional change orders and potential bank fees should be factored into budgets. Treasury teams may need to adjust working capital assumptions to account for a higher proportion of cash on hand. For multi‑site operators, centralised guidance on cash levels, deposit frequency and variance thresholds can improve control without slowing down store operations.
To get ready by 1 January 2026, retailers can follow a simple plan. Confirm whether your business is captured by the rules based on primary activity and turnover. Map current payment policies and identify any gaps with the new requirements. Reinstate or refine cash floats, tills, counting and banking procedures. Update staff training and store playbooks. Review contracts, group standards and POS settings. Communicate clearly with customers online and in store. Monitor issues in the first weeks and adjust processes quickly.
Cash acceptance is returning for essential purchases, and preparation now will minimise disruption, keep customers informed and ensure compliance from day one. If you would like help assessing your obligations, updating store procedures or briefing your team, we can support you with practical checklists, staff training guides and customer communications tailored to your business.
