Australians relying on Centrelink payments should brace for significant changes coming into effect this week.

The new rules will impact how certain payments are managed, introducing adjustments that recipients need to be aware of. These changes are part of broader efforts to streamline the system and ensure compliance with updated regulations.

It's crucial for all beneficiaries to stay informed about these developments to avoid any potential disruptions in their financial support. Stay updated on these changes to manage your Centrelink payments effectively.

Starting this week, Services Australia has announced that it will no longer accept foreign currency cheques or international money orders as payment methods.

This change, effective from December 19, is part of a broader move to phase out cheques in Australia over the next five years.

The upcoming changes to Centrelink payments could affect individuals living abroad who are involved in paying or receiving child support or spousal maintenance, as well as those repaying a Centrelink debt.

From December 19, Centrelink will no longer accept foreign currency cheques or international money orders from overseas customers due to changes in Australia's payment system. Credit: Shutterstock

‘If you’re making a payment to us from overseas, you’ll now need to use an electronic payment method to send foreign currency,’ Services Australia stated.

The method of receiving your Centrelink payment will remain unchanged.

However, while recipients can still opt to receive payments by cheque, it's important to note that this method can take significantly longer for the funds to be deposited into your bank account compared to direct deposit.

Cheques will no longer be issued after June 30, 2028, and will not be accepted beyond September 30, 2029.

Treasurer Jim Chalmers outlined this plan last month, alongside the government's initiative to ensure that businesses providing essential items such as fuel and groceries continue to accept cash.

‘The usage of cheques has declined by 90 per cent in the last ten years, and many banks and financial institutions are ending cheque issuance for new customers,’ he pointed out.

‘To manage this industry trend, the Government is acting to give customers and businesses the certainty and the assistance they need to switch to other payment methods.’

Foreign cheques will not be included in the cheque transition plan because they are processed differently from domestic cheques and are governed by separate rules.

‘A number of small financial institutions provide foreign cheque acceptance and processing services which will not be impacted by the 30 September 2029 end date,’ the government said.

Over the past two years, ANZ, Commonwealth Bank, and NAB have discontinued issuing chequebooks to new customers, leaving Westpac as the only major bank still providing them.

The use of cheques has dramatically declined in Australia, with digital payment methods becoming increasingly popular.

In the early 1980s, cheques accounted for approximately 85 per cent of non-cash payments. However, due to their lengthy processing times and the manual work involved, consumers have increasingly turned to more efficient payment methods.

As a result, cheques have become nearly obsolete, accounting for just 0.1 per cent of all consumer payments in 2022, according to the Reserve Bank.

As Centrelink introduces significant changes to its payment system this week, Australians must prepare for a broader shift in financial transactions.

These adjustments align with the government's plan to phase out cheques by 2028, encouraging the adoption of digital payment methods.

As major banks have already begun discontinuing chequebooks for new customers, the transition underscores the need for updated financial strategies to accommodate these impending changes.

Key Takeaways

• Centrelink payment methods for overseas customers are changing, with foreign currency cheques and international money orders no longer accepted from December 19 due to changes in the Australian payment system.
• Those affected are advised to switch to electronic payment methods for sending foreign currency to avoid disruptions in payments related to child support, spousal maintenance, or repayments of Centrelink debts.
• Despite Australia moving to phase out cheques, Centrelink recipients can still receive payments through cheques until June 30, 2028; however, electronic payments are faster.
• The phasing out of cheques is part of a broader trend as Australians shift towards digital payment methods, with most major banks discontinuing the issuance of chequebooks to new customers.

We at the Seniors Discount Club are here to help you understand these changes and make the most of your financial interactions. Have you made the switch to electronic payments yet, or do you have reservations about leaving cheques behind? Share your thoughts and experiences in the comments below, and let's support each other through this digital transformation.

 

[MaggieMay1948]

We are being rammed by the government and banks into electronic transfers when there is so much fraud, corruption and scamming and yet the government refuses to force the banks into taking responsibility for any transfers that are fake or go missing.

Tell us. What happens if the money goes astray?

 

[Aussiecris]

We are being rammed by the government and banks into electronic transfers when there is so much fraud, corruption and scamming and yet the government refuses to force the banks into taking responsibility for any transfers that are fake or go missing.

Tell us. What happens if the money goes astray?

What happens when the cheque gets lost in the mail, are the banks responsible for that as well

 

[Sue's]

What happens when the cheque gets lost in the mail, are the banks responsible for that as well

Probably not it would be passed on to the taxpayer