The Australian government wants to ensure cash continues to be available across the country. At the moment, businesses aren't legally required to accept physical money as payment, even though it's legal tender.

However, the government is looking at introducing a mandate that would change that. Cash Welcome founder Jason Bryce has told Yahoo Finance that while cashless payments are the overwhelming favourite for many, there are hundreds of thousands who still rely on and depend on cash.

"You need to be able to use cash to buy food medicines and your essential groceries," he said.

"Most of us think we have that right because we've heard the words 'legal tender' and it's written on our banknotes, and many people are shocked and dismayed when they can't use cash."

It's an issue close to people's hearts, as a poll of 18,300 Yahoo Finance readers showed 88 per cent believe businesses should be forced to accept and carry cash.

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What is the government doing to protect cash?

Treasurer Jim Chalmers will announce today the government's intentions to mandate that businesses must accept cash when customers purchase "essential items".

Labor hasn't fully provided the details yet about what might constitute an essential item, but it's understood to mean things like groceries, fuel, basic banking services, and healthcare services.

“For many Australians, cash is more than a payment method, it’s a lifeline,” Chalmers and Assistant Treasurer Stephen Jones said.

“Around 1.5 million Australians use cash to make more than 80 per cent of their in-person payments.

“Cash also provides an easily accessible back-up to digital payments in times of natural disaster or digital outage.”

When will this cash mandate happen?

Sadly for cash users, this won't be an overnight sensation.

Chalmers and Jones will be spending the rest of the year looking at which businesses and services should be included in the mandate.

Following that consultation period, legislation could be expected to be introduced in January 2026.

“The consultation will consider the needs of those who rely on cash, including people in regional areas and those unable to use digital payments, as well as the impact on businesses, particularly small businesses,” the pair said.