The federal government has announced that the cheque system in Australia is set to wind down no later than 2030. 

Under the Strategic Plan for Australia’s Payments System, the government will eliminate legislative and other requirements that currently support payment by cheque. Additionally, government usage of cheques will be phased out by the end of 2028. 

“As the use of cheques plummets and many banks and financial institutions stop issuing chequebooks to new customers, it is important to manage this transition in an orderly and planned way,” Treasurer Jim Chalmers said in a statement. 

“The Government will work with industry to minimise adverse impacts to consumers and businesses and ensure vulnerable Australians have the assistance they need to switch to other payment methods.” 

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Recognizing that the ongoing shift in payment methods can be challenging for some individuals, particularly older Australians and small businesses, the federal government has designed a seven-year transition plan.  

This timeline will allow banks and financial institutions ample time to support their customers during the adjustment period. 

Over the past decade, cheque usage in Australia has experienced an almost 90% decline, with cheques now accounting for just 0.2% of non-cash retail payments in the country.  

As cheque use continues to dwindle, the costs associated with maintaining the cheque system will inevitably increase. Concurrently, many merchants are ceasing to accept cheques as a viable means of payment. 

The federal government aims to foster a coordinated approach among states, territories, industry players, and the broader community in transitioning away from the cheque system. Commonwealth legislation mandating the use and acceptance of cheques will also be revised to align with these changes. 

“The Government will consult further this year with stakeholders on the challenges of retiring the cheque system and ensure all Australians are adequately supported,” Treasurer Jim Chalmers said. 

“This change is part of the Albanese Government’s commitment to ensure we have a modern, competitive and efficient financial system that delivers for the Australian economy and the Australian people.” 

Eliza Sayon

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Eliza is a content producer and editor at Public Spectrum. She is an experienced writer on topics related to the government and to the public, as well as stories that uplift and improve the community.

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