Surcharge ban will create new cash record
Australia is likely to set a new record for the amount of cash in circulation in October, helped along by the impending ban on card surcharging, in effect from 1st October 2026.
The total value of Australian cash on issue is now $108.64 billion and rising, just below the all-time record of $109.25 billion set during Christmas week 2025, according to the RBA’s Balance Sheet.
Over the last five years the value of cash on issue has surged up strongly from $98.1 billion in September 2021, along with our population. There’s now about $3,890 worth of cash in the community for every Australian, up slightly from $3,820 in 2021.
Many small businesses are preparing to replace card surcharge signage with ‘cash preferred’ or ‘discounts for cash’ signage.
The RBA and the ACCC have now confirmed, with updated guidance on their websites, that discounts for cash are perfectly legal. The RBA has been very clear that merchants can replace their card surcharges with discounts for cash.
Other nations that have historically banned surcharges have more cash on issue than Australia, including The Netherlands, France, Japan and Germany.
“Businesses that wish to steer consumers towards other payment methods can do so by providing discounts instead of using surcharges.” says the RBA’s recently updated FAQ page.
The Australian Competition and Consumer Commission has also confirmed merchants can offer cash discounts.
Regulators can’t be clearer – business can replace card surcharges with cash discounts. Australia will hit a new cash record in October 2026.