Preparing Your Business for Australia’s New Cash Payment Rules
Australia’s payment landscape is about to change, and for some businesses, the shift will require more than a simple update at the checkout.
After the rapid adoption of card, mobile, and contactless payments, the federal government has released draft regulations that reintroduce a requirement to accept cash for certain in-person transactions. The changes have taken effect since the 1st of January 2026 and are aimed at ensuring access to essential goods when digital payment systems are unavailable or unsuitable.
For many retailers, cash has become an afterthought. Processes have been removed, staff may never have handled physical currency, and security policies have evolved around digital-only payments. These proposed rules signal a partial reversal of that trend, particularly for businesses operating in essential services such as groceries and fuel.
This article breaks down what the proposed cash payment rules involve, which businesses are likely to be affected, and the practical steps you can take now to prepare without undoing the efficiencies of a largely digital payment environment.
Why the Australian Government Is Introducing New Cash Payment Rules
Rather than responding to a resurgence in everyday cash use, the proposed rules are about preserving access and continuity in Australia’s payment system.
Digital payments now dominate most transactions, but that dominance has introduced a single point of failure. When card networks, mobile coverage, or power supplies are disrupted, the ability to trade can disappear instantly. For essential goods such as food and fuel, even short outages can have serious consequences for consumers and communities.
Government modelling shows that while most Australians are comfortable with digital payments, a meaningful minority still relies on cash in specific situations. This includes older Australians, people in regional and remote locations, and those who prefer physical currency for budgeting or privacy reasons. In parallel, Australia’s cash infrastructure has been shrinking, with fewer ATMs and bank branches available to support these groups.
Cash acceptance, in this context, is being treated as a back-up system rather than a primary payment method. Much like emergency power generation or redundancy in telecommunications, it exists to ensure continuity when modern systems fail.
Recent events have reinforced this logic. Natural disasters, major outages, and network failures have shown how quickly digital-only environments can become inaccessible. In those moments, businesses that retained the ability to accept cash were often the only ones able to continue operating.
By reintroducing limited cash acceptance requirements, the government is aiming to strengthen resilience without reversing the progress made in digital payments. The intention is not to slow innovation, but to ensure essential transactions remain possible under all conditions.
Which Businesses are Required to Accept Cash?
The proposed cash acceptance rules are designed to be narrow in scope, focusing on access to essential goods rather than imposing universal obligations on all retailers.
If the draft regulations are enacted in their current form, businesses operating in fuel retailing and grocery sales will be required to accept cash for in-person transactions below a specified value threshold. The intention is to ensure that everyday purchases remain accessible, even if digital payment systems are unavailable.
Under the proposal, cash must be accepted for transactions of less than $500. This means a customer purchasing fuel, groceries, or other essential items within this limit must be given the option to pay using notes and coins. Higher-value purchases, such as large equipment, bulk supplies, or commercial transactions, can still be restricted to electronic payment methods.
Importantly, the rules are not intended to capture most small businesses. Businesses or franchise groups with an annual turnover of less than $10 million will be exempt from the requirement. This exemption recognises the operational and administrative burden that mandatory cash handling can place on smaller operators.
For larger retailers, franchisors, and multi-site businesses, the application of the rules may require careful review. Turnover thresholds, entity structures, and the nature of goods sold will all determine whether the obligation applies. In some cases, individual outlets may need to be assessed separately to confirm compliance.
The regulations have commenced as of the 1st of January 2026, with a scheduled review after three years to assess effectiveness and unintended impacts.
How the New Cash Payment Rules Could Affect Your Business
The impact of the proposed cash payment rules will vary depending on the size, structure, and nature of your business. For some, the changes will be minimal. For others, they may require a reassessment of long-standing operating practices.
Larger retailers, franchise groups, and multi-site operators that fall within scope will likely need to reintroduce formal cash-handling procedures. This may include updating internal controls, revisiting reconciliation processes, and reviewing insurance and security arrangements. In many cases, staff training will also be required, particularly where teams have little or no experience handling physical currency.
For businesses that qualify for the $10 million turnover exemption, the primary impact is administrative rather than operational. While cash acceptance may not be mandatory, businesses should be able to clearly demonstrate their exemption status if questioned. This places greater importance on accurate financial reporting and clear documentation of turnover across entities.
There may also be strategic considerations. In certain regions or customer segments, continuing to refuse cash could become a competitive disadvantage. Businesses that are able to accommodate both digital and cash payments may appeal to customers who value flexibility, accessibility, or personal service, particularly in regional and community-focused settings.
Franchise groups and businesses with complex structures should be especially cautious. Turnover thresholds, entity arrangements, and the classification of goods sold can influence whether individual outlets are captured by the rules. A consistent, well-documented approach across locations will reduce compliance risk as the regulations take effect.
Ultimately, the changes are less about reverting to old systems and more about ensuring businesses remain operational, inclusive, and compliant in a broader range of circumstances.
How to Prepare Your Business for Cash Acceptance Requirements
Review Your Current Payment Settings
Start by assessing how your business currently handles payments. If cash acceptance has been phased out, consider what would be required to reintroduce it in a controlled way. This may involve reviewing point-of-sale configurations, updating internal procedures, and ensuring staff understand how cash transactions should be processed.
Confirm Whether the Rules Apply to Your Business
Eligibility under the proposed rules depends on both the type of goods sold and your annual turnover. Businesses selling fuel or groceries with turnover exceeding $10 million are most likely to be captured. If your turnover is close to the threshold, begin compiling financial data early so your position can be clearly established.
Businesses that expect to qualify for the exemption should ensure their records are complete, accurate, and readily available. Being able to demonstrate exemption status will be important if compliance is questioned.
Plan for Implementation Costs
Reintroducing cash handling can involve direct and indirect costs. These may include new tills, secure cash storage, staff training, insurance adjustments, or additional security measures such as CCTV. Factoring these costs into forward budgets will make the transition more manageable.
Put Efficient Cash-Handling Processes in Place
Accepting cash does not have to mean increased inefficiency. Tools such as smart safes, automated cash counters, and third-party cash collection services can reduce manual handling and reconciliation errors. For larger operators, standardising processes across locations can also improve consistency and control.
Communicate Clearly With Customers
If your business reintroduces cash acceptance, ensure customers are informed. Clear signage and staff communication can help manage expectations and reinforce accessibility. In some cases, highlighting that cash is accepted may strengthen customer trust and loyalty, particularly in regional or community-focused markets.
What These Changes Mean for Australia’s Payment System
The proposed cash acceptance rules signal a shift in how Australia thinks about payments infrastructure not as a question of old versus new, but of balance.
Digital payments will continue to dominate day-to-day transactions. They are efficient, scalable, and deeply embedded in how businesses and consumers operate. The government’s move does not challenge that reality. Instead, it acknowledges that a system built entirely around digital access can expose vulnerabilities when technology fails or access is uneven.
By preserving cash as an option for essential, low-value transactions, the payments system gains an additional layer of resilience. This approach recognises that redundancy is not inefficiency, but protection, particularly in a country where regional distance, weather events, and infrastructure disruptions can quickly affect connectivity.
In this sense, the reintroduction of limited cash acceptance is less about returning to the past and more about future-proofing the system. It reflects a broader policy message: progress does not require the elimination of choice, especially when that choice supports continuity and inclusion.
How Cordner Advisory Can Help Your Business Prepare
Regulatory change often creates uncertainty, particularly when it affects long-established operating practices. Understanding whether these new cash payment rules apply to your business and what practical steps are required is essential to managing both compliance and cost.
Cordner Advisory works with businesses across Australia to interpret regulatory changes and translate them into clear, workable actions. In relation to the proposed cash acceptance requirements, our team can assist you to:
Assess whether your business is captured by the rules or qualifies for the $10 million turnover exemption
Prepare and maintain accurate records to support your compliance or exemption position
Review and design cash-handling procedures that align with operational and security requirements
Identify efficient systems to manage both digital and cash payments without unnecessary complexity
Evaluate the commercial implications of accepting cash, including potential customer and operational impacts
Plan for implementation costs and integrate them into your broader financial strategy
Our approach focuses on practical guidance, not generic advice. We help businesses stay compliant while identifying opportunities to strengthen resilience and improve operational clarity.
If you would like tailored advice on how these changes may affect your business, speaking with an adviser early can help avoid unnecessary disruption as the regulations approach implementation.
