Australia is preparing for a monumental change in its payment policies. The arguments for and against cash and card-only transactions are growing, vitally important to businesses, consumers, and policymakers alike. The federal government has announced that, starting in 2026, it will mandate that businesses accept cash when selling essential items. This decision has raised important questions regarding what this means for small business owners, consumers and the larger economy.
Chris Tate, operations manager and co-owner of a café that has operated on a card-only basis since 2017, is among those navigating this evolving landscape. There are a few reasons Tate chose to go cashless. This transition offers real operational benefits such as improved speed of service, less cash-related awkwardness and enhanced cleanliness. His goal is to sidestep the logistical hurdles of physically dealing with and tracking cash. This wish even more explains away his café’s pay-what-you-want policy.
“I think the majority of customers understood there was a degree of speed and convenience that resulted in us going cashless,” Tate stated. He said he wasn’t sure if his café would be considered “essential” under the new order. His contention is that, like any industry, businesses big and small should be allowed the freedom to decide what currency they accept for payment.
Impacts on Small Businesses
The move towards a cashless ecosystem hasn’t been without its bumps. Tate pointed out the burden that often comes with cash management.
He noted that paying for the increased cost of dealing in cash poses an enormous burden on small businesses. This confluence of circumstances is placing tremendous stress on them. His café doesn’t apply surcharges like so many others do for takeaway orders. Diners bypassing the wait on a new table ordering app will face some hefty charges. Through this model, we hope to strike a balance between transparency and affordability.
ACCC spokesperson expressed that consumers needed certainty about what forms of payment businesses would accept.
“Businesses should be clear and up-front about the types of payments they accept, any applicable payment surcharges, and the total minimum price payable for their goods and services,” the spokesperson noted.
The Consumer Perspective
Just as businesses are learning to adapt to changing payments preferences, consumers are changing their habits too. Professor LyLa Zhang has observed a notable decline in cash transactions across Australia, which now account for approximately 10 percent of all payments. This trend is even more stark among older Australians and Australians living in remote areas.
Both of them have their advantages and disadvantages,” Zhang said when comparing cash and digital payments. She encouraged consumers to continue to push back against added fees for digital-only purchases.
Imagine the average household expenditure in Australia is about $3,000 a month. If the surcharge is just 1 percent, that’s still $30 a month for the family,” she said.
Mr. Con Damouras owns a classic old-school joint that’s been in the cash for burgers business since 1952. For him, the debate about how we use cash couldn’t get more personal. Damouras is still an old school trattoria guy at heart. Recently, he added a new online payment form, something he felt was necessary for customer convenience following the pandemic.
“We keep our prices low, and we don’t want to pay bank fees,” Damouras stated while acknowledging that cash remains his primary payment method. He expressed concern about perceptions related to cash transactions, stating, “Some days people come in and say to you, ‘Oh you’re a tax thief, you’re not paying the right tax.’ It doesn’t work that way when you’ve got a high-profile business like this … we always have done the right thing.”
Looking Ahead
With the cash acceptance mandate fast approaching, consumers and businesses alike will need to adapt with this shifting payment environment. Small business owners like Chris Tate and Con Damouras represent two sides of a complex issue: balancing operational efficiency with customer preferences.
For Tate, making his café card-only is just a sensible operational move to prevent any antics and maintain a level of security. “It’s safer for our staff … we’re not having to hold cash on site and send staff to the banks at the end of the shift,” he remarked. He knew this issue would be a lightning rod for certain shoppers. He stressed it is grounded in practicality not ideology.
These next few years will figure out what payment experiences businesses in Australia can adopt. They will adjust to new standards and serve a variety of customer needs and tastes. Whether customers pay by cash, card, or some as yet unknown means, the discussion about how they pay speaks to deeper changes happening in consumer behavior and business operations.
