In response to the changing landscape of payments, the government has announced a plan to phase out cheques. The key dates to remember are: cheques will no longer be issued after 30 June 2028 and won’t be accepted after 30 September 2029. The Government is also working to ensure that alternative payment methods, such as digital and cash, remain accessible and convenient for all Australians.
Cheque use has plummeted by 90% in the past decade, and many banks have already stopped issuing chequebooks to new customers. However, financial institutions are legally required to accept cheques until the Government officially phases them out. Australia is part of a global transition – Danish banks stopped accepting cheques in 2017, and New Zealand followed suit in 2021.
Cheques Out, But Cash Is Here to Stay
While digital payments are the norm for most Australians, the Government is ensuring cash remains a secure and accessible payment option.
Around 1.5 million Australians still rely on cash for over 80% of their in-person payments. Cash also serves as a critical backup during natural disasters or digital outages, and 94% of businesses continue to accept it.
To protect cash users, the Government plans to mandate that businesses selling essential items must accept cash, with some exemptions for small businesses.
What About Card Surcharges?
Currently, businesses aren’t required to accept cash and can set their own payment terms. However, the topic of card surcharges often arises. While businesses can add a surcharge for card payments, it must only cover the cost of using that payment type – it can’t exceed this amount.
What Does This Mean for You?
As the move away from cheques progresses, it’s essential to prepare for changes in how you handle payments. For businesses, this might mean updating your payment systems and educating your customers. For individuals, it could mean familiarising yourself with alternative payment methods. If you’re unsure how this impacts your business or personal finances, contact us today – we’re here to help you stay ahead.