A significant change is coming into effect for Aussies living overseas who use Centrelink services. Starting this week, foreign currency cheques and international money orders will no longer be accepted as payment methods.
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Why Are Foreign Cheques Being Phased Out?
From December 19, Services Australia will no longer process payments made via foreign currency cheques or international money orders due to changes in the Australian payment system. This move aligns with Australia’s broader plan to phase out cheques completely over the next five years.
Services Australia emphasized that individuals impacted—such as those paying child support, spousal maintenance, or repaying Centrelink debts—will now need to use electronic payment methods to send foreign currency.
“If you’re making a payment to us from overseas, you’ll now need to use an electronic payment method,” the agency said.
Will This Affect Centrelink Payments?
No changes will occur for Centrelink recipients receiving payments. While cheques can still be used, they are significantly slower compared to direct deposit.
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Australia’s Plan to Phase Out Cheques
The Australian government has set clear deadlines to phase out cheque usage:
- June 30, 2028: Cheques will no longer be issued.
- September 30, 2029: Cheques will no longer be accepted.
Treasurer Jim Chalmers confirmed the phase-out, citing a 90% drop in cheque usage over the past decade as Australians increasingly embrace digital payment methods.
“To manage this industry trend, the Government is acting to give customers and businesses the certainty and assistance they need to switch to other payment methods,” Chalmers said.
The Decline of Cheques in Australia
Once a dominant payment method, cheques accounted for 85% of non-cash payments in the early 1980s. Today, they represent just 0.1% of all transactions. The slow processing times, manual effort, and rise of faster digital options like online banking have made cheques nearly obsolete.
Who’s Already Moved Away from Cheques?
- ANZ, Commonwealth Bank, and NAB have stopped issuing cheque books to new customers over the past two years.
- Westpac remains the only major bank still providing them.
However, foreign cheques will not follow the same timeline as domestic cheques since they are processed under different rules.
“A number of small financial institutions provide foreign cheque services, which will remain unaffected by the 2029 deadline,” the government added.
What Should Aussies Overseas Do Now?
If you’re living overseas and impacted by this change, it’s time to switch to electronic payment methods to ensure seamless transactions with Services Australia.
While cheques have served their purpose, the future of payments is digital—faster, safer, and far more convenient.
Bottom Line:
Foreign currency cheques are officially on their way out this week. With Australia moving towards a cheque-free future, it’s time for overseas Aussies to embrace digital payments to avoid disruptions.
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