Can A Enterprise Refuse Money In Australia?: Is It Authorized?

As a consequence of ongoing developments in cost applied sciences, processing transactions at point-of-sale are faster and simpler than ever. It’s no shock that these developments have induced a change in the way in which that Aussies use money. 

In response to Square’s Payment and Pandemic Report 2021, 1 in 4 companies have been working as cashless in comparison with 1 in 12 companies in February 2020, and the pattern continues to develop. It’s clear that it isn’t a alternative for many companies however a choice with clients too.

On this article, we’ll clarify how one can legally refuse money funds, the benefits and drawbacks of cashless funds and the steps you have to take to refuse money funds.

Learn alongside!

Causes for refusing money

Lower in recognition of utilizing money 

Aside from Sq.’s report, the 2022 Global Payments Report estimates that by 2025, money will solely symbolize two per cent of all point-of-sale transactions in Australia. The Australian Banking Association reported that ATM withdrawals declined by 20% between August 2020 and August 2021.

Clearly, the usage of money is declining, so it won’t make sense for retailers such as you to spend money and time on preserving that cost choice open to your clients. 


In current instances, Australian companies have launched insurance policies that solely settle for contactless cost. That is to take care of hygiene, minimise contact and stop the unfold of germs within the wake of the coronavirus pandemic (COVID-19). 

The Sq. report highlights the reluctance of shoppers and companies to bodily cope with cash throughout a time when minimising the unfold of COVID is essential. It additionally highlighted that the decline in utilizing money funds is happening internationally, together with in nations equivalent to UK, Japan, Canada and the U.S. 


Nonetheless, it might be advantageous for a enterprise to streamline the way in which it accepts funds, for instance, by going cashless with a purpose to minimise prices.

Research conducted by Square highlighted the impact money has on companies. Small companies spend a median of virtually 29 working days a 12 months dealing with, counting and banking money. That quantities to $8.7 billion in workers wages every year throughout all Australian small and medium-sized companies.

 When you’re in search of extra methods to scale back your corporation prices take a look at how one can increase your corporation money move and declare tax for some tax-deducticble bills.

Different advantages of cashless funds

In case your clients will not be shopping for the ‘no money’ coverage, you may educate them on the the advantages of utilizing digital funds equivalent to: 

  • It’s faster and extra handy to make cashless funds
  • Prospects can keep away from charges related to utilizing money, equivalent to ATM withdrawal charges
  • Prospects can keep away from eftpos charges 

Causes for accepting money

There are lots of advantages offered to shoppers by way of persevering with to make money funds, these embody the next:

  • Through the use of money to make funds, you may keep away from safety points which can be related to making digital funds
  • Customers are much less prone to overspend or make impulse purchases in the event that they’re utilizing money 
  • Customers can stay nameless by utilizing money funds
  • Customers can keep away from technological points which will forestall them from accessing their cash
  • Through the use of money, shoppers can keep away from any charges charged by cost suppliers
  • By making money funds, clients can keep away from hidden charges which can be related to digital funds 
  • Some shoppers would favor to proceed to make money funds as they will not be tech-savvy, and due to this fact they wish to keep away from struggling to make digital funds and the training curve related to them 
  • Prospects can keep away from eftpos charges

What’s authorized tender in Australia?

Section 36 of the Reserve Bank Act 1959 (Cth) offers that Australian banknotes are authorized tender all through the nation. 

Whereas it’s section 16 of the Currency Act 1965 (Cth) that offers authorized tender standing to Australian cash. Nonetheless, cash will solely be authorized tender:

  • If the cost is being made utilizing five-cent cash, ten-cent cash , twenty-cent cash , fifty-cent cash, or any mixture of these cash, the utmost cost that may be made is just $5
  • If the cost is being made utilizing cash with a worth over fifty cents, however lower than ten {dollars}, the utmost cost that may be made can’t be greater than 10 instances the face worth of the coin getting used for cost

Is it authorized to refuse authorized tender in Australia?

Companies have an obligation to simply accept authorized tender except another technique of buy has been specified by verbal or written settlement. By buying items or providers, you’re getting into into such an settlement with the vendor. A enterprise can set the phrases of the settlement previous to the acquisition, together with how cost will probably be made, together with by placing an indication within the retailer about what sorts of cost strategies will or gained’t be accepted.

Subsequently if you happen to present verbal or written discover previous to getting into the contract along with your buyer, your corporation isn’t obliged to simply accept money as a type of cost. And as a substitute, you may state you’re solely accepting cashless funds. 

It’s not unusual for some outlets to show indicators at their checkout or on the door to provide clients satisfactory discover that they refuse money funds.


When you’re a enterprise proprietor who’s trying to cut back prices, take consolation in figuring out that you would be able to refuse to simply accept money. Given that you just’re setting the phrases of the contract along with your clients, you may select whichever cost methodology you favor.

Nonetheless, you have to needless to say you could be required to supply satisfactory discover to potential shoppers that you’ve determined to not settle for money funds.

When you’re nonetheless feeling unsure, it is best to rent a lawyer for authorized recommendation.