“We should always have the ability to use cash, and people should always have the choice.”

That’s the view of Member for Parkes Jamie Chaffey, as debate continues over the Federal Government’s proposed cash mandate and whether it goes far enough to protect people in regional and remote Australia.

From January 1, 2026, new regulations announced by Treasurer Jim Chalmers will require large supermarkets and fuel retailers to accept cash for in-person transactions of $500 or less during standard trading hours.

The Government says the changes deliver on its election commitment to ensure Australians can continue to pay with cash for essential purchases.

“We’re delivering on our commitment to mandate cash acceptance for essential purchases by finalising regulations that require fuel and grocery retailers to accept cash from 1 January 2026,” Mr Chalmers said.

The Treasurer said the mandate would ensure Australians who rely on cash for fuel and groceries are not left behind, while still allowing flexibility for businesses as digital payments become more common.

However, Mr Chaffey said the regulations did not reflect the lived experience of people across large regional electorates such as Parkes, where telecommunications outages and unreliable digital connectivity can quickly turn a card-only system into a barrier.

“There is an absolute need for people to be able to pay for their essential goods like food and fuel with cash,” he said.

“This mandate does not go far enough to ensure that people – particularly those in remote and regional areas where telecommunications are sometimes non-existent – can use their hard-earned dollars to pay for their goods.”

Mr Chaffey said the absence of any reference to medicines in the mandate was a significant concern.

“The mandate makes no mention of medicines – critical or otherwise.

"What happens if telecommunications are down and bank and financial links do not work?” he said.

“People in the electorate of Parkes have the right to be able to purchase food, fuel and medicines whether the telecommunications systems are working or have once again come to a halt.”

Cash advocacy groups have echoed those concerns, arguing the scope of the mandate is too narrow and excludes large sections of the retail economy.

Jason Bryce from cashwelcome.org said the regulations apply only to large supermarkets and fuel retailers, leaving many major national chains outside the mandate.

Card payments are fine on-line, but in person, cash must remain accessible and accepted, according to many stakeholders.

“The proposed cash mandate only applies to big supermarkets and fuel retailers."

"No other retailer is covered by this mandate,” Mr Bryce said.

He said businesses such as hardware stores, clothing retailers and pharmacies were not required to accept cash under the current framework, despite selling goods many Australians consider essential.

Critics have also raised concerns that even where cash is accepted, retailers may only be required to operate a single cash terminal, potentially leaving cash users waiting while card transactions move through more quickly.

The Treasurer has pointed to community consultation informing the final regulations, saying feedback confirmed grocery and fuel purchases were essential.

However, advocacy groups have called for greater transparency, claiming thousands of public submissions have not been released.

Under the regulations, small businesses with an aggregate annual turnover under $10 million will be exempt from the mandate, unless they operate under a shared trademark with a larger retailer - a measure the Government says protects independent operators from unnecessary compliance costs.

Mr Chalmers has also noted that Australians can currently pay many bills, including utilities and council rates, in cash at Australia Post outlets through Post Billpay.

Critics argue this option is not guaranteed into the future and does not provide certainty for essential services.

The debate comes as new figures from the Reserve Bank of Australia show $422 million in new banknotes were issued last week, taking the total value of Australian cash on issue to more than $108 billion for the first time.

Supporters of cash say the figures highlight its continued importance, particularly in regional and remote communities where resilience, redundancy and choice remain critical.

The Government has committed to reviewing the mandate after three years to ensure it is functioning as intended.

For now, the discussion underscores a broader question facing regional Australia: how to balance the shift to digital payments with the need to ensure no one is left without a way to pay when systems fail.