Australia is set to say sayonara to cheques as a banking method within the next decade thanks to a bold new plan to modernise the nation’s payment system.
The change will see the paper-based banking system become a thing of the past, and pave the way for a more digital approach to the way Australians bank.
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Treasurer Jim Chalmers signed the death warrant, revealing that the decision had been made to phase out the ‘outdated’ banking method would help “Australians get their money faster.”
“Our regulatory frameworks and infrastructure have not kept up with the big trends and transitions happening in finance, especially when it comes to the digital economy and payments.”
He went on to refer to the existing cheque system as “clunky, inefficient, and cumbersome to many.”
Whilst the use of cheques has dramatically dropped over the past decade by an estimated 90 percent, there are still many Australians who routinely use the banking method.
“Currently, 98 percent of retail cheques could be serviced through internet or mobile banking and 100 percent of those used in institutional and commercial settings,” the Treasurer said.
“Leaving cheques in the system is an increasingly costly way of servicing a declining fraction of payments.”
The change is set to come into place sometime before 2028.
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Legislative requirements regarding the use of cheques will be removed, with cheques expected to be wholly scrapped from public life by 2030.
