Australia's Cheque Phase-Out

The Transition to Digital Payments 

Cheques have been a staple of Australian financial life for generations, providing a familiar way to pay bills, make purchases, and manage personal and business transactions. But the way we manage money is changing rapidly, prompting a planned transition away from cheques. Here’s what you need to know about why cheques are being phased out, what it means for you, and how you can smoothly transition to modern payment options. 

Cheque usage in Australia has dropped by almost 90% in the last decade, with cheques now accounting for less than 0.2% of all transactions.¹ 

In November 2024, The Treasury released the Cheques Transition Plan, a two-step timetable to wind the system down. By 30 June 2028 banks will stop issuing cheque books; by 30 September 2029 they will stop accepting cheques. The goal is to modernise the payments network while giving industry, government agencies and consumers time to prepare. 

Why are cheques being phased out? 

We’ve already touched on the drastic decrease in cheque usage, but here are the other reasons: 

• High Cost and Complexity: Maintaining cheque services involves significant processing costs, including printing, handling, mailing, and clearance, making them inefficient compared to digital payments. 

• Security and Efficiency: Digital payment methods are safer, faster, and easier to track, reducing the risk of fraud and errors. 

What this means for you 

For many Australians, this change will go largely unnoticed, especially if you already use digital payments for everyday transactions. But if you still use cheques, it’s worth understanding how this shift might affect you and what your options are. 

• Cheque Processing Will End: Banks and businesses will gradually stop accepting or processing cheques. 

• Digital Payment Adoption: Members will be guided and supported to adopt digital payment alternatives. 

• Support for Members: QBANK is committed to helping everyone transition comfortably, including support for vulnerable or elderly customers. 

What are the alternative payment methods? 

Transitioning away from cheques is easier than you might think. Here are some alternatives available right now: 

1. Electronic Funds Transfer (EFT)

• What it is: Direct transfer between bank accounts using BSB and account numbers. 

• Benefits: Reliable, secure, fast, and easy to manage online or via the QBANK app. 

2. BPAY®

• What it is: A trusted method to pay bills through online banking platforms using biller codes and reference numbers. 

• Benefits: Convenient, instant confirmation, widely accepted by utilities, councils, and service providers. 

3. PayID and Osko (New Payments Platform)

• What it is: Real-time payments using simple identifiers like email, phone number, or ABN. 

• Benefits: Instant transfers available 24/7, secure, and easy to track. 

4. Direct Debits and Scheduled Payments

• What it is: Automated recurring payments set up through your bank. 

• Benefits: Ensures timely payments, reduces risk of missed or late fees, ideal for regular expenses such as rent, subscriptions, or repayments. 

5. Digital Wallets and Mobile Payments

• What it is: Smartphone-based payment solutions like Apple Pay, Google Pay, and Samsung Pay. 

• Benefits: Convenient, secure, widely accepted, reducing the need to carry cards or cash. 

Need Help Transitioning? 

We’re here to help you make the move comfortably and confidently. Contact us on 13 77 28 Monday to Friday 8:45am to 4:30pm. 

1 Australian Government, Treasury. (2023, June 7). Modernising payments infrastructure by phasing out cheques [Media release].  https://ministers.treasury.gov.au/ministers/jim-chalmers-2022/media-releases/modernising-payments-infrastructure-phasing-out-cheques