Government sets end date for cheques
The Australian government will mandate cash acceptance for essential purchases, such as groceries and fuel, to ensure no Australian is left behind in an increasingly digital payments landscape.
At the same time, it has unveiled a plan to phase out cheque payments by 2029, in response to their declining use.
In a joint statement, treasurer Jim Chalmers (pictured above left) and assistant treasurer Stephen Jones (pictured above right) emphasised the importance of preserving cash access for vulnerable Australians while managing the shift towards modern payment systems.
“Cash remains vital for many Australians, with around 1.5 million people relying on it for over 80% of their in-person payments,” they said. “For these individuals, cash is more than just a payment method – it’s a lifeline. Our reforms will ensure no one is left behind as payment systems evolve.”
Under the proposed cash mandate, businesses selling essential goods, such as groceries and fuel, will be required to accept cash, with appropriate exemptions for small businesses. Treasury will conduct consultations before the end of 2024 to determine which businesses will be covered by the mandate.
Chalmers and Jones noted that cash provides critical backup during natural disasters and digital outages. While cash use is declining, 94% of businesses currently accept cash, and the government wants this to continue, particularly for essential purchases.
Mandating cash acceptance follows international examples in countries such as Spain, France, Norway, Denmark, and several US states, including Colorado, Illinois, and New York.
The mandate is expected to take effect on Jan. 1, 2026, with final details to be announced in 2025 after consultation. These discussions will consider the needs of regional communities, those unable to use digital payments, and the impact on businesses, particularly small operators.
Phasing out cheques by 2029
In tandem with preserving cash access, the Albanese government has released a Cheques Transition Plan, detailing a gradual phase-out of cheques. New cheque issuance will cease by June 30, 2028, and cheques will no longer be accepted after Sept. 30, 2029.
Usage of cheques has declined by 90% over the past decade, and many financial institutions have already stopped offering cheques to new customers.
“The government is acting to give businesses and consumers certainty while ensuring cheque users have adequate time and support to transition,” Chalmers and Jones stated.
To ensure a smooth transition, the federal treasurer has written to the chief executives of Australia’s major banks, urging them to support cheque users and participate in the Australian Payments Network’s transition program.
The government framed the initiatives as part of broader efforts to modernise Australia’s payments system, which include cracking down on excessive surcharges, expanding the Reserve Bank of Australia’s regulatory powers over new payment technologies, and investing over $180 million to combat scams.
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