The Government’s Cheques Transition Plan: Next Steps in Phasing Out Cheques

Cheque payments have declined by 90 per cent in the last decade, leading to higher costs per transaction for maintaining the cheque system.

Key Points

•    The Government plans to phase out cheque payments in Australia by 2030.
•    Cheques will stop being issued by 30 June 2028.
•    Cheques will stop being accepted by 30 September 2029.
•    Banks are expected to assist customers with the transition.

To address this, the Federal Government has introduced a Cheques Transition Plan, which aims to ensure the phase-out of cheques in an orderly and planned way. You can find the plan here.

Key points of the plan include:

A two-step timeline to stop:
- The issuance of cheques by 30 June 2028
- The acceptance of cheques by 30 September 2029.
The Government's expectation for the financial industry to set up a coordination program.
An overview of the consultation process undertaken (extensive consultation with cheque users, financial institutions and other key stakeholders has occurred over the past year).
The reasons behind the transition.

There is a long transition timeline before cheque use is phased out to ensure customers and businesses have time to plan for this change. The Government will focus on removing legal and other barriers that support cheque payments, such as non-cash gambling payouts. Government cheque usage will phase out by the end of 2028, aiming to completely wind down the cheque system in Australia by 2030.

Banks are expected to help cheque users transition smoothly. The Treasurer has written to the CEOs of the four major banks, emphasising the need for them to join the Australian Payments Network transition coordination program and to support all cheque-using customers.

ClubsNSW will keep monitoring the Government’s plan and will update member clubs as more information becomes available. If you have any questions, please contact ClubASSIST on 1300 730 001 or at [email protected].