Cheques to be phased out by 2030
Cheques will be phased out in Australia by 2030 as the federal government aims to improve the nation’s payments system.
Treasurer Jim Chalmers revealed his plan for major reforms in the way payments are made which will focus on cashless and mobile financial transactions.
In a speech to the Australian Banking Association (ABA) in Sydney, he said Australia’s ageing payments infrastructure was restricting the country’s productivity levels.
Chalmer’s said phasing out cheques and introducing a more efficient New Payment Platform would steer Australia into the path of a digital economy.
The reforms will provide direction for the banks and payments industry’s investment in future technology, ABA chief executive Anna Bligh said.
"With cheques now in steady decline and accounting for only 0.2 per cent of all payments, it's time to have a smooth and well-planned process to phase out this form of payment.
"Australian banks will work with the government to ensure that customers and businesses are ready for a gradual and orderly phase out.”
One of the more significant reasons behind the decline in cheques can be attributed to the costs to individuals and financial institutions.
After consulting with states, territories and industry and community groups, cheques will cease by 2023.
The reform will see Australia in line with several major economies that have already eradicated cheques.
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