AusPayNet welcomes Aussie gov’t retirement of cheques by 2029

Cheques will cease being accepted by financial institutions by 2029

The Australian Payments Network (AusPayNet), the payment industry’s self-regulatory body, welcomed the government’s move to cease the issuing of cheques by mid-2028.

Cheques will cease being issued by financial institutions by 30 June 2028 and will no longer be accepted by them on 30 September 2029.

This move is part of Australia’s modernization of its payment system.

AusPayNet said that it will lead an industry-wide transition coordination program, working with financial institutions in the lead-up to the closure of the cheque system.

“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,” said AusPayNet CEO Andy White in a press statement.

Cheque usage has declined ‘rapidly’ in the past 20 years, according to White.

“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,” he said.

AusPayNet’s transition program will include workstreams on overall migration management, migration of use cases, and clear and consistent industry communications.

The government has also mandated all Australian businesses – with exceptions for some small businesses – to 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,” White said.