Mandating businesses to accept cash for essential goods is sensible reform that will protect older Australians and others who rely on cash from being locked out of everyday life, COTA Australia says.
The Federal Treasurer today announced details of the mandate, which will come into effect on 1 January 2026 and require retailers to accept cash for essential items such as groceries and fuel.
Chief Executive Officer of COTA Australia – the leading advocacy organisation for older people – Patricia Sparrow said the mandate recognises the reality of how many Australians manage their money.
“With one in two Australians over 65, and more than a third of people aged 50 to 65, using cash regularly, mandating cash for essential goods is a common-sense decision that protects financial independence,” Ms Sparrow said.
“For many older Australians, cash isn’t a convenience – it’s essential. It gives people control over their money, helps them avoid extra fees, and provides peace of mind around privacy and security.
“The increasing refusal by some businesses to accept cash had created unnecessary barriers for people simply trying to pay for essentials. No one should be turned away or penalised for wanting to pay for groceries or fuel with legal tender.”
Ms Sparrow said while COTA Australia welcomes the mandate, further changes are still needed to ensure it delivers real equity and protection for consumers.
“If we’re serious about ensuring people can continue to use cash, the mandates need to go further,” Ms Sparrow said.
“The mandate should include a ban on any surcharge for using cash to make sure those who use it – which is disproportionately older people and those on low incomes – are not penalised for their payment choice. The mandate should also be phased in for other types of businesses and services.
“The review in three years’ time will be an important opportunity to review that the mandate has worked in the way intended and to consider any other action required to protect the use of cash.
“If cash acceptance is going to work in practice, it needs to match how people actually live, shop and pay.
“Modernising our payments system should never mean excluding people. This reform is a very strong start – and we need to make sure it truly works for everyone.
“Technology will keep changing, but fairness and inclusion have to keep pace with it.”
Media contact: Tamara Kotoyan, 0430 291 890 or Alana Mew, 0419 929 722