The cheque will be phased out in Australia by 2030, the Federal Government announced on Wednesday.
Treasurer Jim Chalmers said cheques are an “increasingly costly way of servicing a declining fraction of payments” and slowed down Australians receiving their money.
Some background on cheques
A cheque is a physical document instructing a bank to pay a sum of money from one account to another.
The number of cheques used in Australia has fallen by 90% in the last decade.
The Government says almost all cheques still used could be replaced by digital banking services.
Cheques being phased out
The Government’s planned transition away from cheques will be gradual.
Federal Government departments will stop using cheques by 2028 – two years before the cheque system will be totally erased across the country.
There will also be new legislation to ensure regulations around payment methods can keep up with emerging technologies.
What’s the next step?
The Government is now seeking feedback on its proposed regulations and safeguard measures. This will be due in July.
The first batch of legislation is expected to be tabled in Parliament this year, with the remaining to be introduced in 2024.