Cheques will be phased out in Australia by 2030, the Federal Government has announced.
The seven-year transition plan will provide time for banks and financial institutions to assist their customers with the adjustment.
There has been an almost 90 per cent decline in the use of cheques in the last 10 years, with cheques now comprising only 0.2 per cent of non-cash retail payments in Australia.
“As cheque use declines, the cost of supporting the cheque system will continue to increase. At the same time, many merchants are ceasing to accept cheques as a means of payment,” Treasure Jim Chalmers said on Wednesday.
“Other countries have already successfully managed the complete closure of their cheque systems.
“The 2030 end date will be subject to further consultation with industry and stakeholders to determine the feasibility of this timing and an appropriate transition plan.”
The Government will consult further this year with stakeholders on the challenges of retiring the cheque system.
“This change is part of the Albanese Government’s commitment to ensure we have a modern, competitive and efficient financial system that delivers for the Australian economy and the Australian people,” Chalmers said.