Australia urges small firms to ditch cheques for digital

AusPayNet has urged small businesses that still use cheques to switch to digital payment methods as Australia prepares to close its cheque system in stages.

Under the national plan, the writing of personal, commercial, government and bank cheques will stop from 30 June 2028. After 30 September 2029, cheques will no longer be accepted for deposit.

The shift reflects a sustained fall in cheque use across Australia. AusPayNet's latest figures show the value of cheque payments made in April 2026 was down 25% from a year earlier, and cheques now account for less than 0.1% of all payments in the country.

The decline continues a longer trend, with cheque use falling by 15% to 30% each year over the past decade as consumers and businesses have moved to electronic payments.

Even so, some small businesses still rely on cheques to pay suppliers or receive funds from customers. AusPayNet has launched a website with information to help communities prepare for the change.

Declining use

Andy White, Chief Executive Officer of AusPayNet, said the manual nature of cheque handling no longer fits a payments system in which immediate transfers are widely available.

"With the manual effort and long processing times required, cheques look outdated in our modern payments system, in which real-time payments are the norm," White said.

He said businesses that still use cheques should begin preparing now for the system's withdrawal.

"But many small businesses still rely on cheques, and it is important they are supported in getting ready for the time when cheques are no longer available," White said.

The best alternative will depend on how a business currently uses cheques. Options include credit and debit cards, BPAY, eftpos, direct debit, PayTo and direct transfers into a bank account.

White said banks and other financial institutions can help businesses work through those choices.

"There are better payment options available, and banks and financial institutions are on hand to help them make the transition.

"In almost all cases digital payment methods are more efficient, faster and more convenient than cheques. Business owners who are not already digital will find going digital leads to improved business operations," White said.

Unbanked cheques

Industry survey data also points to a large stock of bank cheques that have not been deposited. As of September 2025, Australians were estimated to be holding 3.5 million bank cheques worth AUD $820 million, and 80% were more than three years old.

The figures suggest many cheques remain unused long after being issued, raising the risk that holders may leave them unbanked until the system closes.

"The significant amount of money in the form of unbanked bank cheques gathering dust in the bottom of drawers speaks volumes for the decline in cheque use. We would urge people holding outstanding cheques to bank them well before the cheques system is closed," White said.

AusPayNet said it is coordinating work across the industry to support the move away from cheques, including discussions with advocacy groups and peak business bodies representing users likely to be affected by the closure.

According to the organisation, banks and financial institutions have already begun contacting customers who use cheques regularly and are encouraging them to discuss replacement payment methods with their providers.

The closure will affect personal, commercial, government and bank cheques alike, ending a payment method that was once routine in Australia's financial system. For small businesses that still depend on them, the message is to use the remaining transition period to put digital alternatives in place.