Government Transition Plan to Phase Out Cheques

The Government has unveiled a plan to phase out the use of cheques, with the cessation of cheque issuance by 30 June 2028 and the discontinuation of cheque acceptance by 30 September 2029. 

Over the past decade, the use of cheques has dropped dramatically, decreasing by approximately 90%. In response, banks have stopped issuing cheque books to new customers. However, financial institutions are still required by law to accept cheques until the Government no longer mandates this.

Countries such as Denmark and New Zealand have already stopped accepting cheques, with Danish banks ceasing their use in 2017 and New Zealand’s banks following suit in 2021.

Cheques Out, Cash Still King

Although Australians have increasingly adopted digital payment methods, the Government has ensured that cash remains a viable payment option. Around 1.5 million Australians still use cash for over 80% of their in-person transactions. Cash also serves as an essential backup payment method during natural disasters or digital system outages.

Recent data shows that up to 94% of businesses still accept cash. To further protect this, the Government has announced that businesses will be required to accept cash for essential goods, with exemptions for small businesses.

Currently, businesses are not obligated to accept cash and can set their own payment terms.

Card Surcharges and Payment Transparency

The issue of card surcharges often arises when businesses apply extra charges for card payments rather than including these costs in their pricing. While businesses are allowed to impose a surcharge for card payments, it must not exceed the actual cost incurred by the business for processing that payment type.