Cheques Transition Updates

Archived Updates

18 August 2023

In its Strategic Plan for Australia’s Payments System, Treasury says:

“A key priority for the Government is to ensure the payments system fosters the development of modern, efficient payment infrastructure that promotes greater financial inclusion and delivers a seamless user experience.”

According to the Plan, achieving this priority will include providing policy direction for legacy systems such as cheques and the Bulk Electronic Clearing System.

AusPayNet supports the policy outcomes described in the Plan and will continue to lead with its programs associated with the management of legacy payments systems.

The Plan details a focus on phasing out government use of cheques by 2028 and, subject to consultation, expects the eventual wind down of the cheques system to happen no later than 2030.

AusPayNet continues to proactively respond to the customer-led decline of cheques with a program of work that commenced in 2019. This program has focused on ensuring that participants in the Australian Paper Clearing System Framework (Cheques Framework) can make their own individual choices, that we promote payment neutrality in legislation (both state and federal), and that we promote inclusivity through community and market education on the decline of cheque usage and availability of modern payment alternatives.

In line with the Plan, AusPayNet’s program will focus on:

• Community outreach: Liaising with industry groups, organisation and representative bodies that still use cheques to continue our education on the decline of cheques and modern payment alternatives.
   
• Government engagement: There remains a need to move to payment neutrality in legislation, not only to enable participants to adopt payment alternatives today, but also to future-proof that legislation for developments in payments technology. AusPayNet also looks forward to responding to Treasury’s consultation on the future of cheques, which is due to be released later this year.
   
• Operational efficiency: As usage continues to decline and participants of the Cheques Framework cease to use and offer cheques, it is important that operational processes are reviewed to help minimise any impact on users of cheques as well as operators of the cheques system.