Australia backs away from abolishing cheques

The Australian Payments Clearing Association (Apca) says it sees no need to close the country's cheque clearing system, following a year-long consultation with payment stakeholders.

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Australia backs away from abolishing cheques

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

The umbrella body for the Australian payments system commenced a public consultation on the future of cheques and payments in June 2011. The review was commission on the basis of evidence showing a widespread decline in cheque use, with volumes dropping by 60% over the past decade and by a third in the past three years alone.

However, Apca found a hard core five per cent of the Asutralian population to be reliant on cheques, comprising older Australians, those in rural and regional areas and industries such as real estate.

Reporting back, Apca concludes: "It is predominantly the market that is best able to address the future needs of current cheque users as cheque usage declines. Providers and users can continue to make their own decisions about cheque use, though it needs to be understood that users may be charged fees as a result of increase in marginal costs."

Apca says it will also work with banks to explore the possibilities of cheque truncation and imaging to reduce the infrastructural costs of processing cheques.

The body also intends to set up a 'Milestones Project Steering Committee' in mid-2012 to monitor cheque decline and the take up of alternatives electronic payment options. It will issue its first six-monthly report in early 2013.

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Comments: (3)

A Finextra member 

Sounds like a sensible and pragmatic decision, although the words "though it needs to be understood that users may be charged fees as a result of increase in marginal costs" may be challenged for certain priority users, (e.g. older people), on grounds of financial exclusion. On the other hand cranking up the fees to encourage those dealing in real estate to use something more functional/sensible (and then providing it - the real challenge) sounds much more reasonable.  

Chris Errington

Chris Errington Semi-retired at None

The upcoming SuperStream changes will significantly reduce the use of cheques for Super contributions, which become EFT only from mid 2013.  Courtesy of the Gillard government. 

Thankfully, the this handy 'remittance' for Super admin teams will be replaced by standard xbrl data delivered electronically; correct use of which seems set to be highly regulated by the ATO.

Roll on the day the UK government does something similar for pension contributions.

A Finextra member 

SuperStream does require EFT payment of super/pension contribution and rollovers by mid 2013 onwards to streamline remittance.

XBRL member data will be provided seperately or linked to super payments via a URL conveyed within the DE system message fields for access via web services. 

 

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