Should retailers be forced to accept cash?  

From 19 December 2024 until 14 February 2025 the Albanese government held a consultation process on their plan to mandate cash acceptance for businesses selling essential items.  

Critics of the current cash mandate proposal point to flaws in the plan that could derail any real intention to keep cash circulating in our economy.

Small businesses for whom cash is a critical component of their operations are likely be embroiled in the process that Jason Bryce, founder of Cash Welcome describes as 'confusing and contradictory' whilel large corporations could escape the requirement to allow cash transactions at their counters.

"The list of non-essential items is confusing and contradictory. It will lead to arguments. Why is tea and coffee essential but not water and juice? And children's clothing and shoes is essential, but not adult clothing and shoes? And car repairs and fuel are essential but not cars themselves?"  

He's not the only one critical of the idea.  

Investigative journalist Dale Webster called attention to the fact that the government wants to give exemptions on the cash mandate to small businesses, but 97% of Australian business (as of June 2024) are defined as small.  

"The cash mandate won't work unless it’s a genuine mandate. All retailers must accept cash for it to work," says Bryce.  

But Bryce also cautions against claims of Australia going completely "cashless", pointing to RBA data.  

"We need to be careful of media saying Australia is becoming cashless, because if you look at it the latest figures from the reverse bank show $100 billion in notes in cash are still circulating."  

The government plan to announce the final details of the cash mandate plan later this year, with the proposed start date for the bill set at 1 January 2026.