In November 2024, the Australian Government released its official Cheques Transition Plan, confirming that the national cheques system will be phased out by 30 September 2029. The transition will occur in two key stages: by 30 June 2028, all banks and institutions will cease issuing personal, commercial, government, and bank cheques; and from 30 September 2029, no cheques will be accepted by financial institutions, effectively closing the cheques system entirely.
This plan is part of the Government’s broader initiative to modernise Australia’s payment systems and reduce reliance on outdated methods.
While many individuals and businesses have already moved away from cheques, the formal end date may still come as news to some.
Businesses are moving away from cheques
Although personal cheque use has all but disappeared, some businesses have continued using them for supplier payments, refunds, or even payroll.
Historically, cheques have persisted in business settings for a few reasons:
- Legacy systems or longstanding habits
- Concerns over online fraud or cybersecurity
- The perceived benefit of cheque clearance delays for short-term cash flow
- Preference of certain suppliers or customers
However, these justifications are becoming harder to maintain, especially as banks reduce support and increase fees for cheque processing. Across Accru’s national network, very few clients still rely on cheques – but for those that do, such as some rural or smaller businesses, it’s important to be aware of the Government’s Cheques Transition Plan.
A quiet shift away from cash
While the dramatic decline of cash usage in Australia is widely recognised – especially following the COVID-19 pandemic – it’s still worth highlighting. According to the Reserve Bank of Australia, cash made up just 13% of all transactions in 2022, down from 27% in 2019. Most consumers and businesses now favour digital and contactless payments, such as Apple Pay, Google Pay, or PayID, thanks to their speed, convenience, and security.
Why businesses using cheques need to act now
Businesses that continue to rely on cheques and cash may soon face multiple challenges:
- Rising costs and limited banking services for cheque handling
- Slower transaction times impacting operational cash flow
- Mismatch with customer expectations, as more people expect instant digital payment options
- Regulatory pressure from the Government’s timeline to shut down the cheques system
How to prepare for a digital future
To remain competitive and compliant, businesses should now:
- Implement secure electronic payment methods such as EFT, BPAY, or PayID
- Encourage suppliers and customers to move to digital channels
- Upgrade internal systems and accounting software to support online payments
- Educate staff and clients on how to use the new tools and processes
Ready to make the move?
With the Government’s cheques phase-out plan now official, there’s never been a better time for businesses to modernise. Embracing digital payments can streamline your operations, enhance your security, and future-proof your business.
Need support with reviewing your payment processes or making the switch to digital? The experts at Accru can help.