Australia is fast heading towards becoming a cashless society. But there are still segments of society that rely on being able to pay in cash.
With this in mind, the Federal Government is proposing new legislation that would make it compulsory for Aussie businesses to accept cash for groceries, fuel and other essentials.
What’s the impact of this likely to be for your small business? Let’s take a look.
Giving consumers the option to pay with cash
Research from 2022 by the Reserve Bank of Australia shows that 76% of Aussies pay using cards, while 13% pay using cash. However, there are demographic groups, generally the elderly and those in low income brackets, that still prefer to pay using cash.
Reasons for this can range from security worries and a mistrust of online banking, to the relative ease of using cash as a payment method.
To protect the rights of consumers that prefer cash over cards and/or digital payments, the Federal Government hopes to introduce legislation over the next two years.
Here’s the lowdown:
At present, under existing law, businesses do NOT have to accept cash payments. It’s proposed that legislation will be introduced to make it mandatory for businesses to accept cash as payment for groceries, fuel and other essentials. Cheques are to be phased out altogether as a payment option by September 2029. A consultation process will take place in 2024/25 and legislation will be introduced from 2026. There may be an exemption for small businesses, with details on this to follow.
Talk to us about the impact of a move to cash
If you’re a consumer-facing business selling essential items, and currently only offering cashless payment options, this change in legislation could have a significant impact.
Having to accept cash will require you to have cash registers, cash floats and to bank the money at the end of each day – practicalities that cashless systems had done away with.
Talk to our team and we’ll be happy to run you through the implications.
