Under the new mandate, businesses that refuse to accept cash must provide an alternative payment method at no additional cost to customers.

Despite a significant decline in cash usage, approximately 94% of businesses still accept cash, highlighting its importance for many Australians, particularly those who rely on it for daily transactions.

The government is also focusing on ensuring the sustainable distribution of cash to maintain adequate access for all Australians, particularly the elderly and those in rural areas.

Amidst these changes, Prime Minister Anthony Albanese is advocating for G20 leaders to address global conflicts, emphasizing the humanitarian impact of these crises.

Australia's Treasurer Jim Chalmers has announced a new mandate requiring businesses to accept cash for essential items, effective January 1, 2026, to support the 1.5 million Australians who still rely on cash.

Consultations will be held to define essential goods and services and determine which businesses will be required to accept cash payments based on their size, location, and capacity to handle cash.

Recent IT infrastructure vulnerabilities have underscored the importance of maintaining cash as a payment option, especially in emergencies.

Credit and debit cards now account for 77% of all transactions in Australia, with cash representing only 13% of payments as of 2022.

Cash usage among Australians over 65 has dropped dramatically, from 52% of transactions in 2019 to just 27% in 2022, reflecting a broader trend towards digital payments.

Privacy and security concerns remain significant reasons for continuing to use cash, along with issues such as disability and lack of internet access.

Chalmers has announced a gradual phase-out of cheques, which will no longer be accepted as legal tender after September 30, 2029, following a 90% decline in their use over the past decade.

The decline in cash usage has prompted some countries, including the U.S. and New Zealand, to consider mandating cash acceptance by certain businesses.