Is Cash King Again? The 2026 Cash Mandate for Woolworths & Fuel

In the last decade, the way Australians pay has shifted dramatically. Mobile wallet payments have grown 23-fold in just six years, and "tapping" has become second nature for millions. Yet, despite this rapid digital transformation, the Australian Federal Government has drawn a line in the sand. Starting 1 January 2026, a new cash mandate comes into effect, legally requiring major retailers to accept notes and coins for essential items.

Whether you are a senior who prefers budgeting with physical currency, a regional resident wary of internet outages, or a small business owner confused about compliance, this law marks a significant shift in Australian consumer rights. Here is everything you need to know about the 2026 cash acceptance rules, who they apply to, and why the government is stepping in.

Who Must Accept Cash Under the New Mandate?

The new legislation is highly targeted. It does not apply to every shop in the country; rather, it focuses on businesses supplying "essential" goods. Specifically, the mandate applies to grocery retailers (supermarkets) and fuel retailers (service stations).

From New Year's Day 2026, major players—such as Woolworths, Coles, ALDI, and major fuel chains like Ampol and BP—must provide customers with a reasonable opportunity to pay cash. However, this "right to pay" comes with specific boundaries designed to balance consumer access with staff safety:

The Monetary Cap: Retailers are only compelled to accept cash for in-person transactions of $500 or less.
The Time Window: Mandatory cash acceptance applies between 7:00 am and 9:00 pm.

This timeframe was selected to ensure essential access during core trading hours while acknowledging the security risks of holding large amounts of cash during late-night shifts at 24-hour service stations.

Are Small Businesses Exempt? (The $10 Million Rule)

A major concern for the small business sector has been the cost of handling cash—including insurance, security transport, and reconciliation time. Recognizing this, the government has included a small business cash exemption.

Businesses with an annual turnover of less than $10 million are generally exempt from the mandate. This means your local independent corner store, café, or boutique clothing shop can likely continue to choose their preferred payment methods.

The Franchise Catch

There is a critical "catch" for franchisees. If a small business operates under a franchise agreement or shares a trademark with a large retailer (for example, a locally owned service station branded as a major chain), they may legally be required to accept cash if the wider franchise group’s turnover exceeds the threshold,. This rule ensures consistency for consumers; if you pull into a major branded petrol station, you should expect the same payment options regardless of who owns the lease.

Tip for Business Owners: If you fall under the "Consumer Rights" or "Small Business Compliance" categories, review your turnover and franchise agreements before 2026. [Internal Link Target: Small Business Compliance Checklist]

Why is the Government Enforcing This?

Critics argue that mandating cash is a step backward in a digital world. However, the government cites three primary drivers for this legislation:

1. Social Inclusion

Approximately 1.5 million Australians still rely on cash for more than 80% of their face-to-face transactions. This cohort includes seniors who may struggle with digital literacy, First Nations peoples, and residents in regional areas where banking infrastructure is disappearing. For these groups, mandatory cash acceptance is a matter of basic economic participation.

2. Economic Resilience (Disaster Proofing)

The recent global IT outages (such as CrowdStrike) and natural disasters like the Lismore floods have demonstrated the fragility of digital payments,. When the power goes out or the EFTPOS network crashes, cash is the only way to buy food and petrol. This mandate ensures that the infrastructure to handle cash remains active as a "Plan B" for the national economy.

3. Safety and Privacy

For victim-survivors of domestic and family violence, cash provides a vital lifeline. It allows for financial independence and spending that cannot be tracked by an abuser through shared bank account statements.

Penalties for Non-Compliance

The government is serious about enforcement. While the rules start on 1 January 2026, there is a six-month grace period. Civil penalties for non-compliance are expected to commence from 1 July 2026.

Corporations face fines of up to 600 penalty units (approximately $198,000).
Repeat offenders can be fined up to $55,000 for ongoing breaches.

The ACCC (Australian Competition and Consumer Commission) will oversee compliance and has the power to grant exemptions in exceptional circumstances, such as during a natural disaster or if cash transport services become unavailable in a specific region.

What This Means for Your Shopping Experience

For the average shopper, the biggest change will likely be seen at the self-checkout. In recent years, supermarkets have moved aggressively toward "card-only" kiosks. Under the new rules, major retailers will need to ensure customers have a "reasonable opportunity" to pay cash. This likely means retrofitting self-service terminals with cash-recycling units or ensuring staffed registers are always available during the mandated hours.

However, there are notable exclusions. The mandate currently does not apply to other big-box retailers like hardware stores (e.g., Bunnings), clothing retailers (e.g., Kmart), or—most controversially—pharmacies. Seniors' advocacy groups have expressed disappointment that medication was not deemed "essential" under this specific mandate.

Three-Year Review

The digital landscape changes quickly. The Federal Government has committed to a three-year review of the mandate to assess its effectiveness. This review will determine if the rules need to be expanded to other sectors (like pharmacies) or if the definition of "essential" needs to evolve.

Conclusion

While Australia continues to move toward a digital economy, the 2026 Cash Mandate acts as a statutory safety net. It ensures that no one is locked out of buying food or fuel simply because they hold physical currency.

Think of this new cash mandate like a spare tyre for the Australian economy. We might drive on digital 'tyres' 99% of the time because they are faster and smoother. But when the road gets rough—during a power outage, a system crash, or a natural disaster—you legally need that spare tyre (cash) in the boot to ensure you can still get where you need to go.

Frequently Asked Questions (FAQ)

Q: Does the cash mandate apply to all businesses in Australia? A: No. It currently applies only to "essential" retailers, specifically supermarkets (grocery) and fuel stations. Small businesses with a turnover under $10 million are generally exempt.

Q: Can a supermarket refuse cash if I am buying more than $500 worth of groceries? A: Yes. The mandate only compels acceptance for in-person transactions of $500 or less.

Q: Are pharmacies included in the cash mandate? A: No. Currently, pharmacies are not included in the definition of essential retailers for this mandate, meaning they are not legally required to accept cash under these specific new rules.

Q: Can I pay with cash at a petrol station at midnight? A: Retailers are only mandated to accept cash between 7:00 am and 9:00 pm. Outside of these hours, they may choose to operate card-only models for staff safety.

Q: Does this law start immediately? A: The rules come into effect on 1 January 2026, but financial penalties for non-compliance generally apply from 1 July 2026.

References

Treasury Ministers. (2025). Mandating cash acceptance. Australian Government. Link
ACCC. (2025). Payment methods and new cash acceptance rules. Australian Competition and Consumer Commission. Link
National Seniors Australia. (2025). Cash mandate "devil in the detail" disappoints. Link

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