Seniors groups say the proposed government mandate to make it illegal for businesses to refuse cash doesn’t go far enough.

Amid the increased use of digital payments, the federal government has announced it will mandate cash for essential purchases to protect Australians who use cash.

The mandate will come into effect on January 1, 2026.

Seniors groups say the proposed government mandate to make it illegal for businesses to refuse cash doesn't go far enough.
Seniors groups say the proposed government mandate to make it illegal for businesses to refuse cash doesn’t go far enough. (Nine)

Essential items include groceries, infant’s clothing, cleaning and personal care products, medicines and fuel.

Non-essential items where cash could be refused include cakes, biscuits and takeaway, adult clothing, alcohol, furniture and tools.

Supporters who back cash argue there are plenty of reasons to keep it across the board – to cut out card surcharges, avoid online banking risks, and to help with budgeting.

Tass Maniatis from the Frog n Toad Cafe said cash was always welcome at her cafe.

“We have an older demographic in the area but the young ones too,” Maniatis said.

Federal treasurer Jim Chalmers.
Federal treasurer Jim Chalmers. (Nine)

Chris Grice from National Seniors Australia said there are more items excluded than included and the mandate is still confusing.

”If you go to the till and you pay for bread and you pay for cake, does that mean that you pay cash for one item and then you’ve got to use a card for the other?” Grice said.

The deadline for public submissions on the mandate is this Friday.

“What this consultation means that people from all corners of our community are able to express a view,” Treasurer Jim Chalmers said.

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