Businesses are cautious of the federal government's proposed cash acceptance mandate, saying there must be exemptions for those that cannot practically handle cash.
One Canberra business owner said accepting cash no longer became viable after multiple thefts.
Businesses selling essential items will be required to accept cash payments under a new mandate proposed by the federal government.
It will ensure the 1.5 million Australians who rely on cash will not be left behind as most of the country turns to digital payments, Treasurer Jim Chalmers said.
"Cash can be a really important lifeline, it can be an important back up, it gives people peace of mind and a sense of security," he said.
Supermarkets, banks, pharmacies, petrol stations and healthcare services are likely to be among the affected sectors.
The government will begin consultation this year to determine the details, but there were likely to be exemptions for small businesses.
Cafe bans cash to limit human error, theft
It so far appears unlikely hospitality businesses would be affected by the mandate, which Canberra cafe owner Will Fisher is thankful for.
One of his venues, Gather cafe in Braddon, no longer accepts cash after several thefts, including two break-ins, Mr Fisher said.
The decision was made during the COVID-19 pandemic, when customers were using less cash for fear of germs.
Accounting and closing at the end of the day were simpler without cash, Mr Fisher said.
"[It] removes human error by not having cash," he said.
Gather cafe sometimes accepts cash if customers have the exact amount or don't want the change, Mr Fisher said.
An exemption for small businesses is something Canberra Business Chamber CEO Greg Harford would welcome.
Accepting and handling cash was not practical for all businesses, he said.
"While [cash] does remain legal tender, we would be concerned if this proposal put significant requirements on businesses, some of which just aren't geared up necessarily to handle cash anymore," he said.
Automated fuel stations, that don't have the option to take cash, were among the types of business Mr Harford said could be challenged by the proposed changes.
Business owners face significant costs and time in managing cash, as well as security concerns, Mr Harford said.
"You've got to make sure that it's obviously kept secure, transported securely and often when you're dealing with very small volumes of cash, which is what most businesses are dealing with these days, it is problematic," he said.
Businesses are customer-led
Data from Treasury suggests 94 per cent of businesses continue to accept cash.
Ultimately, businesses were customer-led, Mr Harford said.
"If customers still want to be paying by cash, then most businesses will still be accepting it," he said.
Opposition finance spokeswoman Jane Hume said people should be able to use cash but "inflicting more regulation and red tape on businesses large and small does have implications for the cost of goods and services".
Dr Chalmers denied prices would increase and said the government would be very attentive to competition issues.
"We don't want to see the medium- and bigger-sized businesses vacate the field if they're selling essentials," he said on Monday.
"We're prepared to be reasonable about it."
The details of the mandate will be announced in 2025.
Cheques are also being phased out by September 2029 and will stop being issued by June 2028.
- With AAP
