Cheques Transition Updates
Archived Updates
18 November 2024
The Australian Government announced this week a move aimed at ensuring an orderly phase-out of cheques as part of a strategy to modernise Australia’s payments system. Under the Government’s Cheques Transition Plan, cheques will 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 cheques system. The program will be subject to an application for ACCC authorisation.
Our work in coordinating the cheques transition program will include workstreams on overall migration management, migration of use cases, and clear and consistent industry communications. This work will assist in ensuring cheque users continue to be supported in the transition.
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.
