As the digital age continues to reshape our daily lives, the way we manage our finances is also undergoing significant transformation. This week marks a pivotal moment for Australians, particularly those residing overseas, as Centrelink implements a major change to its payment methods that could affect how you handle your transactions with the government agency.
From December 19, Services Australia will no longer accept payments made through foreign currency cheques or international money orders. This move is part of a broader shift within the Australian payment system, which is gradually phasing out the use of cheques over the next five years.
For those living abroad, this change is particularly relevant if you are involved in paying or receiving child support or spousal maintenance, or if you are in the process of repaying a Centrelink debt. The traditional methods of using cheques and money orders for these payments will no longer be viable.
Services Australia advises that anyone making payments from overseas will need to switch to an electronic payment method to send foreign currency. It’s important to note, however, that there will be no changes to the way Centrelink payments are disbursed to recipients. While cheques can still be used to receive Centrelink payments, recipients should be aware that the processing time for cheques is significantly longer than for direct deposits.
The timeline for the phase-out of cheques is clear: they will cease to be issued by June 30, 2028, and will no longer be accepted after September 30, 2029. Treasurer Jim Chalmers has underscored the government’s commitment to ensuring that cash remains an accepted form of payment for essential items such as fuel and groceries, even as we transition away from cheques.
The decline in cheque usage is stark. Over the past decade, their use has dropped by 90 per cent, with many banks and financial institutions discontinuing cheque issuance for new customers. ANZ, Commonwealth Bank, and NAB have already stopped issuing cheque books to new customers, leaving Westpac as the only major bank still providing this service.
In the 1980s, cheques accounted for approximately 85 per cent of non-cash payments. Today, they represent a mere 0.1 per cent of all consumer payments, according to the Reserve Bank. The reasons for this decline are clear: cheques are slow to process and require more manual effort compared to the swift and convenient digital payment methods now widely available.
As we move away from the era of cheques, it’s important to stay informed about the digital future of finance. What are your thoughts on the shift towards electronic payments? Have you made the transition to digital methods, or are there any challenges you’re facing in adapting to this change? We’d love to hear your thoughts and experiences in the comments below!
Also read: 2025 financial adjustments: Centrelink, Medicare, and Superannuation insights
