The Commonwealth Government’s cash mandate regulations came into effect on 1 January, however a six month transition period is in place meaning that no penalties will apply for non-compliance until 1 July 2026. The cash mandate requires supermarkets and fuel retailers to honour cash transaction to the value of $500 between 7am and 9pm every day.
The implementation of the cash mandate for supermarkets is a relatively straight forward proposition, however its application to fuel retailers is a far more complex matter. Treasury recognised this to some degree with the regulations carving out unstaffed diesel only fuel sites from the cash mandate.
However, there are many different operating models in the retail fuel sector. These differing models don’t appear to have been contemplated in the writing of the regulations.
For example, UNSTAFFED sites that predominantly sell diesel, but also sell a small amount of unleaded, are not automatically exempt from the mandate. It is also unknown how sites that are staffed for a portion of the day but then operate with an OPT for the balance of the day, or close before 9pm, will be treated.
It’s also not known at this time whether the ACCC will require retailers to seek exemptions in one application covering multiple sites, or whether an exemption application will need to be sought for each site individually.
Also, while the regulations state that an exemption may be granted if compliance with regulations would pose a risk to the ongoing financial viability of a business, it does not address whether this applies to the ongoing financial viability of retail fuel site which is a very different matter.
The ACCC are mindful of minimising the administrative burden for industry while balancing the requirements under the regulations as they are written. ACAPMA has met with the ACCC twice over the past four weeks and communicated issues of concern on other occasions regarding the implementation of the cash mandate. ACAPMA will keep engaging with the ACCC and will keep you updated as the ACCC progresses with the implementation of the mandate.
If you would like clarification as to whether you may need to seek an exemption, please email communications@acapma.com.au with the details of your site and we will seek to get a response.
