Big changes are coming for Centrelink payment methods, impacting Australians living overseas. Starting December 19, 2024, Services Australia will no longer accept payments via foreign currency cheques or international money orders. This move aligns with Australia’s broader plan to phase out cheque usage over the next five years.
Here’s what you need to know about these changes and how they may affect you.
New Rules
Australians residing overseas who need to make payments to Services Australia—for example, for child support, spousal maintenance, or Centrelink debt repayments—must now use electronic payment methods.
- What’s changing?
- Foreign currency cheques and international money orders are no longer accepted.
- What stays the same?
- Payments from Centrelink to recipients remain unaffected. Cheques will still be available, but they may take longer to process than direct deposits.
According to Services Australia, switching to electronic payments ensures faster and more reliable transactions for overseas residents.
Australia’s Plan
The Australian government plans to gradually eliminate cheques, citing a massive decline in usage.
| Key Milestones | Details |
|---|---|
| June 30, 2028 | Final date for issuing cheques |
| September 30, 2029 | Cheques will no longer be accepted or processed |
Foreign cheques will not follow the same timeline as domestic ones because they are subject to different processing rules. Small financial institutions will still handle foreign cheque services beyond 2029, but major banks like ANZ, NAB, and Commonwealth Bank have already phased out cheque books for new customers.
Cheques Being Phased Out
Cheque usage in Australia has plummeted, with many consumers adopting faster, more efficient digital payment methods.
- Historical Decline: In the early 1980s, cheques accounted for 85% of non-cash payments.
- Current Usage: By 2022, cheques represented only 0.1% of consumer payments, according to the Reserve Bank.
- Benefits of Digital Payments: Digital transactions are quicker, require less manual effort, and are more reliable.
Treasurer Jim Chalmers emphasized the importance of transitioning to modern payment methods:
“The usage of cheques has declined by 90 per cent in the last ten years. This trend necessitates clear planning and assistance to help consumers and businesses adapt.”
How This Affects
If you’re paying from abroad, switch to an electronic payment method as soon as possible. Electronic transfers offer faster processing and eliminate the risks of lost or delayed cheques.
For Domestic Recipients
There’s no immediate change for those receiving payments within Australia. However, direct deposits remain the quickest and most efficient option for Centrelink recipients.
Key Considerations
- Payments made via cheques can experience delays.
- After September 2029, cheques will no longer be an option for domestic transactions.
Future of Payments
The broader phasing out of cheques reflects a shift toward digital payment solutions. As this transition continues, consumers and businesses must adapt to ensure smooth financial transactions.
While the changes might pose initial challenges for some, they promise greater efficiency and reliability in the long term.
FAQs
When will foreign cheques stop being accepted?
Services Australia will no longer accept them from December 19, 2024.
Can I still receive Centrelink payments via cheque?
Yes, but direct deposits are faster and more efficient.
When will domestic cheques be phased out?
Issuing stops June 30, 2028, and acceptance ends September 30, 2029.
What payment methods should overseas residents use?
Electronic payment methods must be used for foreign currency payments.
Why are cheques being phased out?
Cheque usage has declined due to faster, more efficient digital alternatives.
