Australian Government Moves to Preserve Cash Payments: Mandatory Acceptance from 2026 – Sydney Auction Clearance Rate at 62%

Week’s Key Focus

In Australia, the use of cash has dropped to historically low levels, but the Albanese government is taking action to ensure cash remains available for essential payments in the years to come. Treasurer Jim Chalmers announced that from 2026, retailers selling food and fuel must accept cash payments. The plan will also consider exemptions for small businesses, with a consultation phase beginning this year to determine the scope of the mandate. As electronic payments become more prevalent, cash usage has declined significantly in recent years. In 2022, card payments accounted for over 75% of all transactions, while cash made up only 13%. However, cash remains indispensable for some Australians, with about 1.5 million people relying on cash for more than 80% of their in-person transactions. Additionally, cash serves as a critical backup payment method during natural disasters or digital payment system outages.

The government’s intervention is also tied to the crisis in the cash transport sector. Earlier this year, major banks, retail giants, and Australia Post had to step in with a $50 million bailout to rescue Armaguard, a key cash transportation company on the brink of collapse, ensuring cash supplies for at least one more year. This situation sparked concerns about the accessibility of cash for people in remote areas and the elderly.

The policy draws inspiration from mandatory cash acceptance measures in countries such as Spain, France, Norway, and Denmark, as well as some US states. Jim Chalmers emphasized, “We want cash payments, especially for essentials, to continue to be available.”

Additionally, the government announced the gradual phase-out of cheques starting June 30, 2028. This move, which had been previously flagged, comes after a 90% decline in cheque usage over the past decade and plans to fully cease their acceptance by September 30, 2029.

This initiative not only provides reassurance for Australians reliant on cash payments but also supports diversity and inclusivity in payment methods in an increasingly digital era.

Auction Results Last Week

Sydney: 1,487 properties went to auction, with 887 results reported. 550 properties sold, resulting in a clearance rate of 62%. The total auction value reached AUD 574,338,538, with a median house price of AUD 1,525,000.
Melbourne: 1,452 properties went to auction, with 1,027 results reported. 609 properties sold, resulting in a clearance rate of 59%. The total auction value reached AUD 439,854,899, with a median house price of AUD 915,000.