Cheque usage continues to decline as the industry starts to wind down the cheques system
MEDIA RELEASE
11 December 2025
Cheque usage continues to decline as the industry starts to
wind down the cheques system
Latest cheques use data shows the value of cheque payments made in FY25 was down 20.6% on the previous year. Cheques now account for less than 0.1% of all payments made in Australia. The drop-off extends a long-term trend that has seen cheque use decline by 15% to 30% annually since 2016 [1].
Australians have increasingly embraced faster, more efficient and convenient digital payments. Their popularity has surged in recent years and as a consequence, reliance on cheques has decreased.
New industry data [2] has also revealed that Australians are holding an estimated 3.5 million bank cheques worth $820 million as of September 2025 – with 80% of these cheques over three years old.
It is now one year since a plan to wind down Australia’s cheques system was announced. Under this plan, the writing of personal, commercial, government and bank cheques is being phased out progressively by 30 June 2028, and the depositing of cheques for payment will cease on 30 September 2029.
Australian Payments Network (AusPayNet), the payments industry self-regulatory body, is coordinating industry’s program of work towards a smooth transition away from cheques. The program includes stakeholder engagement with advocacy groups and peak business bodies representing cheque users and addressing any barriers to moving cheque use to alternative payment methods, while banks and financial institutions are continuing to support and educate regular cheque users about alternative payment methods.
AusPayNet CEO Andy White said the long-term decline of cheques in Australia was being led by consumers who are embracing more convenient digital payment methods.
“The staggering amount of wealth - $820 million - of unbanked bank cheques sitting at the bottom of drawers speaks volumes of the decline in cheque use in Australia. With the manual effort and long processing times required, cheques look more and more like an anachronism in our modern payments system,” Mr White said.
“People holding outstanding cheques are encouraged to bank them well before the planned closure of the cheques system.
“We know some Australians - including older Australians and those in remote areas - rely on cheque payments and it is important they are supported. We recommend they explore the faster and more convenient options available - banks and financial institutions are on hand to help them make this transition,” he said.
Cheques users may have already received communication on this change from their financial institution or bank and are encouraged to get in touch with them regarding the transition to alternative payment methods.
To enable the transition, the Commonwealth will work with state governments to reduce government cheque use ahead of the target end dates and will work towards removing legislative and regulatory barriers entrenching the use of cheques.
More information about the cheques transition plan and industry’s transition program is available from Treasury’s website and AusPayNet’s website.
[1] AusPayNet Annual Review 2025
[2] AusPayNet Australian Paper Clearing System Member Survey, 2025
