Can Businesses Refuse Cash in Australia? The New 2026 Payment Rules Explained

If you run a business in Australia, you may have seen headlines about new payment rules taking effect in 2026. One question sits at the centre of it all: can businesses still refuse cash?

For many businesses, the answer remains yes - provided their payment terms are made clear before the customer commits to a purchase. Despite common belief, “legal tender” does not mean every business must accept cash in every situation.

However, that flexibility is now more limited for some retailers.

The cash acceptance rules started on 1 January 2026, with penalties applying from 1 July 2026. The rules require certain supermarket and fuel retailers to give consumers a reasonable opportunity to pay in cash for eligible in-person payments of $500 or less between 7am and 9pm, unless an exclusion or exemption applies. The rules are targeted. They do not mean that every Australian business must start accepting cash.

At the same time, other payment-related reforms - including changes to card surcharges and Payday Super - will affect how many businesses manage pricing, payroll and cash flow.

Understanding how these changes fit together is key to staying compliant.

A shift away from fully cashless essential retail

Over the past decade, and particularly since the COVID-19 pandemic, many Australian businesses have moved toward cashless payments. For some, this has been about efficiency. For others, it has been about safety, reduced handling costs or faster service.

However, the shift has not worked for everyone.

Cash remains an important payment method for many Australians, including older people, people in regional areas, and individuals who may not have reliable access to digital banking. Cash can also play an important role during outages, emergencies or disruptions to digital payment systems.

The government’s response has been to make sure that, at least in some supermarket and fuel retail settings, cash remains a viable payment option.

This is where the cash acceptance rules come in.

The rules apply to certain supermarket retailers and motor fuel retailers. They require covered retailers to give consumers a reasonable opportunity to pay in cash for eligible in-person payments of $500 or less, between 7am and 9pm. The explanatory statement for the regulations describes the mandate as applying between those hours for in-person payments of $500 or less.

This does not eliminate cashless business models entirely. Instead, it places limits on where fully cashless operations can be used.

So, can businesses still refuse cash?

The short answer is: yes, many businesses can still refuse cash - but not all businesses, and not in every situation.

Businesses outside the mandated categories will generally still be able to set their own payment terms. For example, online-only businesses are not covered by the new cash acceptance rules. Many businesses - including cafés, salons, consultants, tradies, gyms, clinics, professional services firms and online stores - are generally not covered unless they also operate a covered supermarket or fuel retail business.

The ACCC describes the cash acceptance mandate as applying to certain supermarket and fuel retail sites at certain times. It does not apply to every industry or every business that sells essential goods.

Even within covered sectors, the requirement is not unlimited. The obligation is tied to in-person payments of $500 or less, made between 7am and 9pm. Higher-value transactions, transactions outside those hours, or non-face-to-face transactions may be treated differently.

What has changed is not the concept of legal tender itself. What has changed is the circumstances in which certain retailers are allowed to refuse cash.

For businesses covered by the rules, refusing cash for a covered transaction will no longer simply be a business policy decision. It will be a compliance issue.

What this means for small businesses

For most small businesses, the cash acceptance rules will not require a major change.

A small café, salon, consultancy, gym, online store, professional services firm or trade business is generally not required by these rules to accept cash, provided it is not operating a covered supermarket or fuel retail business.

However, small businesses should still be careful about how they communicate payment terms.

If a business does not accept cash, this should be made clear before the customer commits to a purchase. That could mean clear signage at the counter, notices on menus, terms on booking pages, or transparent payment information during online checkout.

Small supermarkets and fuel businesses should take extra care.

Some supermarket and fuel businesses earning less than $10 million a year may be excluded, but this exclusion does not apply where the business uses a registered trademark associated with a larger business. That means a smaller business operating under a larger brand may still need to comply. The ACCC also notes that the rules do not apply to some fuel retailers that do not regularly sell unleaded petrol.

This means small businesses should not assume they are automatically exempt simply because they are independently operated, have relatively low turnover, or operate from a single site.

A small supermarket or fuel retailer should check:

• Whether it is in a covered industry;
• Whether automotive unleaded petrol is routinely supplied at the site, if it is a fuel retailer;
• Whether the less-than-$10-million small business exclusion applies;
• Whether it uses a registered trademark associated with a larger business;
• Whether any exemption is available; and
• What cash-handling systems it needs in place.

Important exceptions and edge cases

The cash acceptance rules are targeted and do not apply to every business that sells essential goods.

They apply to certain supermarket and fuel retail sites only. Some small businesses earning less than $10 million a year may be excluded, but this exclusion may not apply if the business uses a registered trademark connected with a larger business.

Fuel retailers should also check whether automotive unleaded petrol is routinely supplied at the site, as some fuel retail sites are excluded.

Businesses outside the cash acceptance codes may still choose not to accept cash, but they should clearly disclose this before the customer commits to a purchase. If card payment is the only available option and a surcharge applies, the minimum surcharge may need to be included in the displayed price.

What this means in practice

For businesses that have already moved to a cashless model, the rules may require a rethink if they operate in a covered sector.

Accepting cash is not just about allowing a different payment method at the counter. It may involve maintaining a float, handling reconciliation, training staff, managing security risks and updating workplace procedures.

These are precisely the factors that led many businesses to go cashless in the first place.

Reintroducing cash, even in a limited capacity, can create operational complexity. At the same time, failing to comply with the rules could expose covered businesses to complaints, regulatory action and penalties.

The ACCC has said penalties for the cash acceptance codes apply from 1 July 2026, giving businesses a transition period after the codes commenced.

The result is a balancing act between efficiency, accessibility and compliance - one that will look different depending on the type of business you run.

Card-only businesses still need clear pricing and disclosure

Even where a business can lawfully refuse cash, it should be upfront about accepted payment methods.

This is particularly important where card payment is the only practical option. If a business is card-only and applies a surcharge, it needs to consider whether the surcharge is unavoidable and whether the minimum total price needs to be included in the displayed price.

The key point for small businesses is that cashless does not mean disclosure-free. Customers should know how they can pay, and what the minimum total cost will be, before they commit to buying.

If a business is card-only, it should tell customers before they order, book or otherwise commit - not just at the point of payment.

This applies across physical stores, online checkout pages, booking systems, menus and service terms.

Other payment changes businesses cannot ignore

While the cash acceptance rules are likely to attract the most attention, they are only one part of a broader set of reforms affecting businesses in 2026.

Payday Super

From 1 July 2026, employers will need to pay superannuation guarantee contributions at the same time as salary and wages, rather than on a quarterly cycle.

This is not a retail payment rule, but it matters for small businesses because it may affect cash flow, payroll systems and the timing of outgoing payments.

The ATO says Payday Super changes how employers calculate, pay and report super guarantee from 1 July 2026. Fair Work guidance says contributions generally need to reach the employee’s nominated account within 7 business days, with some exceptions such as the first super contribution for a new employee.

Businesses that currently rely on quarterly super payments will need to prepare for more frequent payment obligations and ensure their payroll systems are ready.

Small businesses should also check whether their payroll software, clearing house arrangements and cash-flow forecasting can support the new payment timing. Treasury has also indicated that the ATO’s Small Business Superannuation Clearing House will be retired from 1 July 2026.

Card surcharge changes

From 1 October 2026, card surcharges are also changing.

The RBA has announced reforms that will remove surcharging on debit, prepaid and credit card transactions on the designated eftpos, Mastercard and Visa networks. The RBA has said the surcharge framework is no longer achieving its intended purpose, and that surcharging on both debit and credit cards should end on 1 October 2026.

Until then, businesses must continue to comply with existing surcharge rules. This includes the rule that a card surcharge must not exceed the business’s cost of accepting that payment type. The ACCC guidance also warns that businesses cannot avoid surcharge rules by using another label, such as a service fee or handling fee, where the fee only applies to certain payment methods.

For businesses that currently add card surcharges, this may require a pricing review.

Instead of passing card costs on as a separate surcharge, businesses may need to absorb those costs or build them into headline prices.

This is particularly relevant for small businesses operating on tight margins, where merchant fees, payroll timing and cash-handling costs can all affect day-to-day cash flow.

A more regulated payment environment

Taken together, these reforms point toward a more regulated payment environment.

Businesses are being asked to do more than simply offer convenient payment options. They are expected to ensure accessibility in key retail settings, provide clearer pricing, absorb or restructure some digital payment costs, and meet stricter timing rules for employee entitlements.

For some businesses, the impact will be minimal.

For others - particularly small businesses in grocery, fuel, hospitality, retail or businesses with tight cash flow - the combined effect may be significant.

Importantly, the message is not that Australia is banning cashless business models. Many businesses can still operate cashless if they are clear with customers and are not covered by the cash acceptance rules.

The better takeaway is that payment practices are becoming more closely regulated.

Small business checklist

Small businesses should consider the following steps:

1. Check whether the business operates a supermarket or fuel retail site.
2. If it is a fuel retailer, check whether automotive unleaded petrol is routinely supplied at the site.
3. Check whether the cash acceptance rules apply to the relevant site.
4. Review whether the less-than-$10-million small business exclusion applies.
5. Check whether the business uses a registered trademark associated with a larger business.
6. If covered, prepare tills, floats, reconciliation, cash security and staff training.
7. If cashless, clearly disclose card-only terms before the customer orders, books or buys.
8. Review card surcharge practices and displayed prices before 1 October 2026.
9. Review payroll systems, clearing house arrangements and cash-flow forecasting before Payday Super starts on 1 July 2026.
10. Seek legal advice if it is unclear whether an exclusion or exemption applies.

The bottom line

So, can businesses refuse cash in Australia?

In many cases, yes - but the answer now depends on the type of business and the transaction.

Many Australian businesses can still choose not to accept cash, provided they clearly disclose this before the customer commits to a purchase. However, certain supermarket and fuel retailers must give consumers a reasonable opportunity to pay in cash for eligible in-person transactions of $500 or less between 7am and 9pm, unless an exclusion or exemption applies.

More broadly, the changes signal a move toward a more regulated and structured payment landscape.

For small businesses, the key takeaway is not that every business must accept cash. It is that payment policies, pricing practices and payroll systems should be reviewed before the 2026 reforms take full effect.

Businesses that understand these changes early will be in a stronger position to adapt without disruption.

If you would like a consultation on determining whether your business practices are in line with these changes, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.