By Michelle Grattan in Canberra

The Albanese government, anxious to prevent a dash from cash by businesses, says it will mandate that they must accept it for essential items.

Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones outlined the move in a statement, and are also releasing a plan to make the phasing out of cheques as orderly as possible.

Small businesses in general will be exempted from the cash requirement.

Treasury will consult on what businesses will be affected. They are expected to include supermarkets, those supplying basic banking services, those selling pharmaceuticals, petrol stations, utilities and healthcare services.

Through the consultations the government will consider the size of businesses that must accept cash, for example in the supermarket sector whether it would apply only to the largest supermarkets.

The question of distance will be relevant – what would be a reasonable distance for a person to have to travel to find a business that took cash.

The regime would likely be established through regulation, so it could be adjusted over time.

The ministers said although people increasingly use digital methods to pay, about 1.5 million Australians use cash for 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,” the ministers said.

They said up to 94 per cent of businesses still accept cash “and we want to see cash acceptance continue particularly for essentials”.

The consultations would consider the needs of people relying on cash, including those in regional areas and those unable to use digital payments, as well as the impact on businesses especially small businesses, the ministers said.

The details of the mandate would be announced next year and it is proposed it start from January 1 2026.

Cash mandates are in place in countries including Spain, France, Norway and Denmark and in some American states.

Under the cheque transition plan, cheques will only stop being issued by June 30, 2028 and stop being accepted on September 30, 2029.

Cheque use has fallen by 90 per cent in the last decade. Many banks and other financial institutions are ending providing cheque books for new customers.

The ministers said the government was acting to give customers and businesses the help they needed to switch to other payment methods. Banks also had a responsibility to support users in a smooth transition.

Chalmers has written to the CEOs of the four major banks outlining what is expected of them.

Parliament begins frantic last fortnight

Parliament is commencing its final fortnight sitting for the year with much more legislation on the agenda than it can deal with.

Among its priorities will be the caps on international students for universities, which are set to start next year. The caps will cost some universities large amounts of income, and have also come under attack from the retail and hospitality sectors.

The government is also anxious to have passed before the end of the year its aged-care reforms, with the opposition agreed in principle but a wealth of detail to be considered.

There is as well legislation for the indexation of HELP student loans and for new school funding.

On Monday the government will introduce its sweeping changes to election donations and spending, with the aim of passing the legislation by the end of next week.

Other legislation includes restricting the age of access to social media to 16 and over, with the bill to be introduced this week. The opposition supports this move, and indeed advocated it before the government, so this has a good prospect of passage this year.

But the bill for controls on misinformation and disinformation appears at this stage to be unlikely to pass, with Fatima Payman, who defected from Labor, among the crossbenchers who has expressed opposition.

The Greens are looking for negotiations to be reopened on the housing legislation they have been holding up.

Greens spokesman Max Chandler-Mather has written to Housing Minister Clare O’Neil with a list of demands on the Build to Rent and Help to Buy bills, saying the Greens would pass the bills if the government “agrees to make progress” on their points.

With the election fast approaching and housing a central issue, it would seem in the interests of both Labor and Greens to strike a deal.

Michelle Grattan, Professorial Fellow, University of Canberra. Republished from The Conversation.