Digital payment options expand as government phases out cheques by 2028
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As we approach the end of the year, Services Australia is ushering in a significant shift in how Centrelink debt repayments are processed.
If you're repaying a Centrelink debt, stop using foreign currency cheques and money orders starting on 19 December.
This move is part of a broader trend towards digital payment methods, and pensioners and other Centrelink recipients need to be aware of these changes.
For those who still receive Centrelink benefits via cheques, it's worth noting that these payments typically arrive at least two weeks later than direct deposits.
The wait can be even longer, with the potential for postal delays.
The government confirmed last December that it's working on a plan to phase out cheque payments, with a complete cessation of commercial and government cheque issuance by 2026.
The government will no longer accept cheques by 2028, and the entire cheque system in Australia will shut down by the end of 2030.
Cheques were once the king of non-cash payments, peaking in the 1980s when they accounted for 85 per cent of such transactions.
However, the rise of digital payment technologies and increased fraud and processing costs have rendered cheques nearly obsolete.
Yet, this shift poses challenges for Australia's ageing population, who may need help to adapt to digital alternatives.
Banks around the world are reducing their reliance on these traditional payment methods.
For instance, Denmark has yet to accept cheques since 2001.
In Australia, more than half of the nation's ATMs have disappeared in the past five years, as the Australian Prudential Regulation Authority (APRA) reported.
The 2023 Australian Digital Inclusion Index (ADII) reveals that one in four Australians is digitally excluded, severely affecting their ability to manage health, access education and services, and maintain social connections.
Remote First Nations communities, older Australians, and those with the lowest incomes are most at risk of digital exclusion.
The 2024 Australian Attitudes to Getting Online report found that 14 per cent of Australians struggle to afford internet or phone bills, with some having to choose between digital access and necessities.
Additionally, many Australians, especially those with disabilities, feel overwhelmed by the pace of technological change.
To address this digital divide, Get Online Week, a national campaign by digital inclusion advocates Good Things Australia, will run from 14 to 20 October.
This initiative will feature hundreds of free digital skills events nationwide, helping Australians become more comfortable with digital tasks such as booking healthcare appointments, paying bills, using government services, and staying connected with loved ones.
What do you think about moving from cheque payments to digital ones for older Australians? What should the government do to help everyone adjust? Let us know in the comments below.
If you're repaying a Centrelink debt, stop using foreign currency cheques and money orders starting on 19 December.
This move is part of a broader trend towards digital payment methods, and pensioners and other Centrelink recipients need to be aware of these changes.
For those who still receive Centrelink benefits via cheques, it's worth noting that these payments typically arrive at least two weeks later than direct deposits.
The wait can be even longer, with the potential for postal delays.
Foreign currency cheques and money orders for Centrelink debt repayments will no longer be accepted from 19 December. Credit: Shutterstock
The government confirmed last December that it's working on a plan to phase out cheque payments, with a complete cessation of commercial and government cheque issuance by 2026.
The government will no longer accept cheques by 2028, and the entire cheque system in Australia will shut down by the end of 2030.
Cheques were once the king of non-cash payments, peaking in the 1980s when they accounted for 85 per cent of such transactions.
However, the rise of digital payment technologies and increased fraud and processing costs have rendered cheques nearly obsolete.
Yet, this shift poses challenges for Australia's ageing population, who may need help to adapt to digital alternatives.
Banks around the world are reducing their reliance on these traditional payment methods.
For instance, Denmark has yet to accept cheques since 2001.
In Australia, more than half of the nation's ATMs have disappeared in the past five years, as the Australian Prudential Regulation Authority (APRA) reported.
The 2023 Australian Digital Inclusion Index (ADII) reveals that one in four Australians is digitally excluded, severely affecting their ability to manage health, access education and services, and maintain social connections.
Remote First Nations communities, older Australians, and those with the lowest incomes are most at risk of digital exclusion.
The 2024 Australian Attitudes to Getting Online report found that 14 per cent of Australians struggle to afford internet or phone bills, with some having to choose between digital access and necessities.
Additionally, many Australians, especially those with disabilities, feel overwhelmed by the pace of technological change.
To address this digital divide, Get Online Week, a national campaign by digital inclusion advocates Good Things Australia, will run from 14 to 20 October.
This initiative will feature hundreds of free digital skills events nationwide, helping Australians become more comfortable with digital tasks such as booking healthcare appointments, paying bills, using government services, and staying connected with loved ones.
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