While digital wallets and cards are popular payment methods in Australia, cash remains an essential part of the country's payments mix. In 2025, cash was used for approximately 15% of customer payments and around half of Australians used cash in a typical week.

Cash's staying power is reinforced by new federal regulations that mandate cash acceptance for essential purchases. Starting in 2026, grocery stores and petrol stations are required to accept cash for in-person transactions under AU$500.

Below, we'll outline what businesses should know about dealing with cash payments in Australia.

Key takeaways

• Cash use in Australia has stabilised in recent years, accounting for 15.5% of payments in 2025. Digital and contactless methods still dominate overall.
  
• Since 1 January 2026, grocery stores and petrol stations have been required to accept cash, and card surcharges were banned on 1 October 2026.
  
• Accepting cash still offers many benefits to businesses, including lower processing costs, no chargeback risk, and support for older and lower-income customers who rely on cash, provided proper handling and reporting practices are followed.
  

What currency is used for cash payments in Australia?

Australia's currency is the Australian dollar, denoted as AUD or $. There are 100 cents in an Australian dollar. Australian banknotes are available in denominations of $5, $10, $20, $50 and $100, and coins are available in denominations of 5, 10, 20 and 50 cents, as well as $1 and $2 coins. The design and production of Australian banknotes and coins incorporates advanced security features and unique designs that reflect the country's culture, history and natural features.

Exchange rates between AUD and major currencies fluctuate constantly due to factors like interest rate changes, commodity prices, and global economic conditions. You can view current exchange rates on the Australian Taxation Office's official annual exchange rate overview.

Cash payment trends and usage in Australia

In Australia, shifting trends in cash payments and usage reflect changes in consumer preferences and payment behaviours.

Here's an overview based on recent data:

• Resurgence and stabilisation of cash usage:
  Following years of steady cash use decline accelerated by the pandemic, cash use increased in 2025, accounting for roughly 15.4% of all payments and nearly 20% of in-person retail transactions. This resilience reflects cash's role as a reliable offline backup amid digital payment outages and practical tool for everyday budgeting.

• Dominance of card and electronic payments:
  Despite cash's rebound, electronic payment methods remain the primary mode of exchange. Debit and credit card payments continue to account for the vast majority of consumer spending, supported by widespread contactless card payment infrastructure.

• Rise of mobile and digital wallets:
  Mobile payments and digital wallet use continue to grow rapidly across all age demographics in Australia, changing how customers pay in stores and interact with digital currencies.

• Growth in online and e-commerce payments:
  Digital commerce accounts for a substantial share of transactions, along with alternative financing methods like buy now, pay later (BNPL) services. Many businesses are optimising their merchant services and payments platforms to support the growth of e-commerce and online shopping.

• Demographic variations in payment preferences:
  While younger Australians and tech-savvy customers favour mobile wallets, older demographics and low-income households rely more consistently on physical cash. At the same time, a growing segment of customers is adopting cash to manage budgets amid cost-of-living pressures.

• Modernisation and regulatory shifts:
  Australia is modernising payments and moving away from legacy paper systems, while physical cash remains a resilient community backup. The country is continuing to expand instant account-to-account transfers and will phase out paper cheques, with issuance ending 30 June 2028, and legal tender status concluding 30 September 2029. Regulatory changes and innovations in the Australian payments system, including the New Payments Platform (NPP), have facilitated instant, 24/7 electronic transfers, further reducing reliance on cash. The introduction of Open Banking in Australia has also helped to increase customer trust and adoption of digital payment methods.

Benefits of accepting cash payments in Australia

Despite digital transactions continuing to increase, accepting cash payments in Australia offers several benefits to businesses.

Here are the advantages of accepting cash in Australia:

• Inclusivity and accessibility:
  Cash remains a primary payment method for certain demographics, including older Australians, people in rural or remote areas with limited internet connectivity, and individuals without access to banking services. Around 1.5 million Australians use cash for at least 80% of their in-person payments. By accepting cash, businesses can cater to these customers and demonstrate inclusivity and accessibility. Australia's diverse tourist population also includes visitors from countries with a higher reliance on cash. Accepting cash helps businesses tap into this customer base.

• Immediate settlement and liquidity:
  Cash transactions provide immediate settlement, which improves a business's cash flow. Unlike electronic payments, which can involve processing delays, cash funds are available instantly. This can be especially helpful for small businesses and vendors that operate on thin margins and require quick access to funds for daily operations.

• Reduced transaction costs:
  Accepting cash can be more cost-effective for some businesses, especially small and micro enterprises. Unlike card transactions, cash payments do not incur processing fees or charges imposed by banks and payment gateways. For businesses conducting a high volume of low-value transactions, such as cafes or local markets, savings that come from avoiding these transaction fees can add up.

• Simplicity and reliability:
  Cash transactions do not rely on digital infrastructure. This simplicity is an advantage in situations where technological complexities or failures, such as point-of-sale (POS) system breakdowns or internet outages, can disrupt electronic payments. During natural disasters or power outages, which can be relatively common in certain parts of Australia, accepting cash allows business to continue operating.

• Customer preference and trust:
  Some customers prefer cash for budgeting or privacy concerns. Paying with cash can allow customers to manage their spending more effectively and avoid digital footprints. In certain sectors, such as secondhand goods or local farmers' markets, customers often expect to pay with cash.

• Reduced dependency on third-party providers:
  By accepting cash, businesses can reduce their dependence on third-party financial service providers and lower the associated risks, such as data breaches or service disruptions. This independence can be particularly appealing for businesses that are wary of sharing customer data with digital payments platforms.

• Boosting impulse purchases:
  Cash can encourage impulse buys, especially in retail settings where the physical act of handing over cash can feel less inhibiting to customers than using a card or mobile device.

• Compliance with customer expectations:
  Despite the shift towards digital payments, a segment of the Australian population still prefers – or expects – the option to pay with cash. Providing this option can increase customer satisfaction.

Digital payments are increasingly prevalent in Australia, but accepting cash can still be a route towards inclusivity, lower overheads, immediate liquidity and operational simplicity. Balancing cash and digital payment options can help businesses cater to a wider customer base and adapt to varying consumer preferences in the Australian market.

Legal and compliance considerations for cash payments in Australia

For businesses, handling cash payments in Australia means adhering to several legal and regulatory considerations. These regulations are designed to create transparency, prevent financial crimes, and maintain the integrity of Australia's financial system.

Here are the primary laws and regulations governing cash payments, and their implications for businesses:

Legal tender laws

• Currency Act 1965 and Reserve Bank Act 1959: These acts establish Australian banknotes and coins as legal tender. They imply that businesses are generally required to accept cash for transactions unless they have clearly stated their payment method terms before a transaction takes place (e.g., in online transactions or specific business models, such as airlines).

• Competition and Consumer Regulations 2025: Starting in 2026, businesses that sell groceries or fuel must accept cash for in-person payments under AU$500 between the hours of 07:00 to 21:00. Some smaller retailers with turnover of less than AU$10 million per year are exempt.

• Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act 2006: This act requires businesses to take measures to prevent their services from being used for money laundering or terrorism financing. It includes obligations such as customer due diligence, record-keeping, and reporting suspicious transactions.

• Threshold transaction reports (TTRs): Businesses must report cash transactions of AU$10,000 or more to the Australian Transaction Reports and Analysis Centre (AUSTRAC).

Tax compliance

• Goods and services tax (GST) and income tax regulations: The Australian Taxation Office (ATO) requires businesses to record and report all transactions, including cash sales, for tax purposes.
  

Fair trading and consumer laws

• Australian Consumer Law: These laws require businesses to follow fair trading practices. Misleading or deceptive conduct in relation to pricing or the acceptance of payments is prohibited.
  

Counterfeit currency laws

• Crimes (Currency) Act 1981: This act makes it an offence to knowingly possess or use counterfeit currency. It puts the onus on businesses to detect and report counterfeit notes.
  

Workplace health and safety regulations

• Handling and storing cash: While not directly related to cash payments, occupational health and safety laws require employers to provide a safe working environment. This includes safe practices in handling, storing, and transporting cash to minimise risks like theft.
  

Privacy laws

• Privacy Act 1988: If a business collects personal information during transactions (e.g., for loyalty programmes or customer identification under AML/CTF laws), they must comply with privacy laws regarding the handling and storage of this information.
  

How to accept cash payments day-to-day

Implement appropriate cash handling procedures

• Train staff on cash handling: Educate employees on handling cash, including identifying counterfeit notes, proper cash counting, and providing correct change.

• Establish clear cash management policies: Implement clear policies for cash handling, including opening and closing registers, cash-in-transit procedures, and cash reconciliation.

• Secure cash with safes and locked drawers: Use safes, cash drawers with locks, and other security measures to minimise theft and loss.

Maintain accurate and transparent record-keeping

• Set up a POS system to record sales: Set up a system (e.g., a POS system) that accurately records cash transactions, ensuring compliance with tax obligations and aiding in financial analysis.

• Provide transaction receipts: Always provide receipts to customers for cash transactions to maintain transparency and for record-keeping purposes.

• Audit cash drawers and transactions regularly: Regularly audit cash transactions and reconcile cash drawers to identify any discrepancies.

Comply with AML/CTF regulations

• Verify customer identity for large transactions: For transactions over AU$10,000, follow the customer identification and verification procedures as mandated by the AML/CTF Act.

• Report large cash transactions to AUSTRAC: Report transactions over AU$10,000 to AUSTRAC to comply with anti-money laundering laws.

Counterfeit detection and handling

• Educate staff about counterfeit detection: Train staff to detect counterfeit notes using methods such as checking for security features in banknotes.

• Establish a counterfeit response protocol: Develop a protocol for handling suspected counterfeit currency, including reporting to the authorities.

How to optimise customer experience with cash and digital payment options

Prioritise speed and efficiency

• Keep transactions fast and efficient: Conduct cash transactions quickly for a positive customer experience.

• Maintain cash handling hygiene: Maintain cleanliness at cash handling points and offer hand sanitisers.

Adapt to consumer preferences and trends

• Offer multiple payment methods: Accept cash, while also providing digital payment methods to cater to varying consumer preferences. Businesses can accept both cash and digital payments by using integrated payment gateways and compatible in-person POS systems.

• Support cash-reliant demographics: Be mindful that some demographics prefer or rely on cash payments, including older adults, certain socioeconomic groups, and tourists.

Focus on safety and security

• Secure cash-in-transit services: If using cash-in-transit services, be sure they adhere to safety standards to reduce the risk of theft during transportation.

• Install in-store security measures: Consider security measures like surveillance cameras and secure cash handling areas to deter theft.

Privacy and data protection

• Protect customer personal data: If collecting personal data during transactions, comply with privacy laws in handling and storing this information.
  

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FAQs about cash payments in Australia