A new law mandating cash acceptance for essential businesses, the clock begins on 1 January 2026. The final legislation is much less of the initial government proposals. While most of our clients already accept cash and intend to continue doing so, a growing number are considering a cashless model and need clarity about their rights.

Crucially, retailers must understand that government rules are part of the picture. Many have contractual obligations to their suppliers as well.

The Government

The federal law mandates certain businesses to accept cash payments for goods and services. However, the scope is unexpectedly limited, far less than originally promised, and several exemptions still apply.

Business Category

It targets explicitly retailers of "essential" goods, primarily supermarkets and fuel stations. It does not automatically apply to businesses that sell items such as stationery, books, or pet food.​

Small Business Exemption

The law includes a significant exemption for small businesses, generally defined as those with an annual turnover below $10 million.​

"Part of a Group" Rule

If your business operates as part of a larger group or franchise (e.g., a branded service station), you are likely required to accept cash regardless of your individual turnover.​

Primary Purpose

Your obligation is determined by your primary business category, not the specific item being sold. For instance, if fuel is your primary revenue source, you must accept cash for all items in the store, including non-essentials.

Transaction Limit

The requirement to accept cash only applies to transactions up to $500. For any sale over this amount, you can legally refuse the money.​

While the government may exempt you based on turnover or category, your suppliers likely won't. This brings us to the most overlooked aspect of the new mandate: your commercial contracts.

The Commercial Reality

Even if the law gives you a pass, your most important business partners may require you to handle cash. Before considering a cashless policy for any product, you must check your existing agreements.

Australia Post

Licensed Post Offices (LPOs) operate under a different mandate that defines them as essential service providers. You will be required to accept cash for all postal transactions, such as stamps and bill payments.

Lottery Services

Your lottery retailer agreement requires you to accept cash for ticket sales and pay out smaller prizes in cash. You cannot provide this service without money in the till.

Transport Ticketing

If you are an agent for public transport ticketing, your contract likely designates you as a cash access point for the network, obligating you to accept cash.

Payment & Parcel Services

Third-party bill payment or parcel drop-off services want you to accept cash from customers. Refusing cash could be seen as a breach of your service agreement.

The "Split Counter" Nightmare

Implementing a hybrid policy that accepts cash for some items but not others will create significant operational and customer service issues.

Customer Friction

Refusing cash for a greeting card while accepting it for petrol at the same counter invites customer conflict and erodes goodwill.

Operational Complexity

A mixed policy is difficult for staff to enforce during busy periods, increasing the risk of errors. It also complicates compliance with card surcharging rules, frustrating customers who have cash ready.

Your Action Plan

For those considering a move to a cashless system, a review of your legal and commercial obligations is essential.

Frequently Asked Questions (FAQ)

Q: If my business goes cashless after 1 January 2026, do I need a sign?
A: Yes. Under the Australian Consumer Law (ACCC), you must clearly disclose your payment terms before a transaction to avoid misleading customers. Put a prominent sign at the entrance or point of sale, such as "Card Payments Only."

Q: My insurer requires me to minimise cash holdings. Does the law override this?
A: The law does not void private contracts. You must negotiate with your insurer to find a solution that balances your legal mandate to accept cash with your contractual insurance obligations.

Q: Can I surcharge for cash payments?
A: Surcharging for cash is legally risky; adding a fee to a cash payment could be viewed as misleading pricing under Australian Consumer Law, which assumes prices are listed in cash.

Q: My local bank branch closed. How can I comply if I can't deposit cash?
A: The collapse of our cash infrastructure is a growing problem. The law requires you to accept cash but does not compel banks to remain open. You may need to find an alternative bank or consider paying for business expenses in cash at other local retailers.

Note, I am not a lawyer and do not pretend to be, and I suggest you seek professional advice before proceeding with any proposed action on this...

Written by:

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

There are some key changes to the privacy laws that will affect us all.

The Small Business Exemption Is Ending

For years, businesses with an annual turnover under $3 million were usually exempt from privacy laws. The exemption is about to end.

Soon, every business will be required to comply with Australian Privacy Laws. What it means is that if you record a person's email for receipts or a phone number for deliveries, it constitutes personal information. It must be protected. Whether the person was brought to you or not is not relevant. It is your business that has collected this information on that person.

Penalties are higher

The government is significantly increasing fines for privacy breaches. It's worth noting that legal costs will add even more to the overall expense.

Direct Lawsuits May Become Possible

Currently, customers must first complain to the Office of the Australian Information Commissioner. The proposed changes would let customers sue businesses directly for privacy breaches. It creates a higher financial risk if you mismanage data.

International Customer Complications

I have previously inquired numerous times without receiving a proper response: if your customer is an overseas citizen, we need to consider the legal regulations of their home country. Many countries also have privacy laws.

Considering these changes, let's take some practical steps to safeguard your retail business and ensure our compliance.

Practical Steps for your business

It is crucial that you:

Review what personal information you collect. Only gather what you actually need. If you do not need it, do not collect it. Then store all your information securely. If possible, use encryption, many backyp systems provide such a service. Delete any information you no longer need. This may be tough, as generally, all Australian businesses are required to retain business records for a minimum of seven years. I have clients who are required to retain certain information for 30 years.

Train your staff on privacy basics. Everyone should understand that customer data is confidential and protected.

Check who has access to your customer information and remove unnecessary people.

Handling Customer Privacy Complaints

If a customers complain about their privacy:

Step 1: Respond Immediately

It's a customer, and you want their goodwill, so send an immediate response.

Send a response, like: "We're sorry for any frustration this has caused. We're taking this matter seriously and are investigating now." This shows professionalism without admitting legal fault. If you admit fault here, your insurance policy may be voided. You may also be seen as admitting to a criminal act.

Step 2: Investigate Thoroughly

Review any records you have. Consult with your staff if relevant. Document everything you find.

Don't delete data immediately, as you might need it to resolve the complaint properly. I had one newsagency where the customer demanded to be present when his information was destroyed.

Keep detailed notes of your investigation process.

Step 3: Seek Expert Advice When Needed

If the complaint feels severe, don't guess. Seek external advice. Contact your industry association, a legal expert, or the OAIC for guidance. Be sure to note that you have documented this and note what instructions they provided.

Step 4: Provide a Clear Resolution

You must respond within 30 days. Do not be late. In your response, offer them a solution and apologise for the obvious distress this has caused your customer. It may involve correcting or deleting information. With me, it would be deleting it.

If customers are still unhappy with your solution, well, you must notify them about their right to file a complaint with the Office of the Australian Information Commissioner.

Preparing Your Business

It's essential to remember that customer data privacy extends beyond simply complying with the law. If customers think their information isn't safe, I doubt they'll stay with you.

This article provides general guidance and should not be considered legal advice. Consult privacy professionals for specific situations.

Written by:

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.