Australia’s payments industry body welcomes the federal government’s announcement on the next steps in phasing out cheques
MEDIA RELEASE
18 November 2024
Australia’s payments industry body welcomes the federal government’s announcement on the next steps in phasing out cheques
Australia’s payments industry self-regulatory body Australian Payments Network (AusPayNet) has welcomed the Federal Government’s move to ensure an orderly phase-out of cheques as part of a strategy to modernise Australia’s payments system.
The Government today announced that cheques would cease being issued by financial institutions by 30 June 2028 and cease being accepted by them on 30 September 2029.
AusPayNet will lead an industry-wide transition coordination program, working with financial institutions in the lead-up to the closure of the cheque system. The program will be subject to an application for ACCC authorisation.
AusPayNet CEO Andy White said it was important that the closure of the cheque system was closely coordinated so that regular users of cheques had time to adapt to alternative payment methods.
“Cheque usage has declined rapidly in the past 20 years and the cheque system has already been closed in many other countries. It is clear that cheques are no longer fit for purpose as a payment method when there are so many safe, efficient and convenient digital alternatives available,” Mr White said.
“Closing the cheque system is an important step in modernising Australia’s payment system, but cheque users should continue to be supported in the transition. AusPayNet will work closely with financial institutions to ensure no-one is left behind or excluded from the payment system as Australia phases out cheques.”
AusPayNet’s work in coordinating the cheques transition program – which will include workstreams on overall migration management, migration of use cases, and clear and consistent industry communications – is just one role it plays in modernising Australia’s payments system.
The Government has also announced that it will mandate that all Australian businesses – with exceptions for some small businesses – must accept cash for the purchase of essential items.
“AusPayNet agrees with the Government that there will always be a role for cash in our society and we will be working with industry to ensure its continuity,” Mr White said.
As part of payments modernisation, AusPayNet is also leading work on the industry-led transition away from the Bulk Electronic Clearing System (BECS) – as noted in the Government announcement – and recognises that a successful decommissioning of BECS may benefit from industry coordination, designed in a way that ensures compliance with competition laws.
As a key participant in the National Anti-Scam Centre and through its own Economic Crime Forum, AusPayNet is also supporting the Government’s strategy to combat scams and online fraud.
