25 August 2016
Find out more

Australia backs away from abolishing cheques

17 May 2012  |  8267 views  |  3 Australian Flag

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.

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.

Comments: (3)

Nick Senechal
Nick Senechal - VocaLink - London | 17 May, 2012, 10:54

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.  

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Chris Errington
Chris Errington - Gresham Computing plc - London | 17 May, 2012, 14:55

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.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Brad Rosenthal
Brad Rosenthal - Payment Adviser Pty Ltd - Sydney | 18 May, 2012, 02:35

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. 

 

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

French banks called upon to halve cheque processing volumes

French banks called upon to halve cheque processing volumes

26 April 2012  |  6669 views  |  1 comments
RBA launches probe into Oz banking outages

RBA launches probe into Oz banking outages

21 February 2012  |  10965 views  |  6 comments
UK govt plans Payments Council regulation

UK govt plans Payments Council regulation

11 November 2011  |  7762 views  |  0 comments
UK bank u-turn sees cheques saved

UK bank u-turn sees cheques saved

12 July 2011  |  10484 views  |  3 comments
New Zealand considers the future of paper cheques

New Zealand considers the future of paper cheques

06 July 2011  |  6012 views  |  0 comments
Americans want remote deposit capture - Javelin

Americans want remote deposit capture - Javelin

24 May 2011  |  8289 views  |  1 comments
US Treasury prepares to retire cheques

US Treasury prepares to retire cheques

26 April 2011  |  8503 views  |  0 comments
Americans ditching cheques for electronic payments

Americans ditching cheques for electronic payments

09 December 2010  |  10249 views  |  1 comments
Ditching cash and cheques could save Ireland EUR1bn - NIB

Ditching cash and cheques could save Ireland EUR1bn - NIB

09 September 2010  |  12392 views  |  1 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit VocaLink.comVisit capgemini.comVisit equens.com

Top topics

Most viewed Most shared
hands typing furiouslyBlockchain: what to expect for 2017?
8197 views 0 | 54 tweets | 46 linkedin
hands typing furiouslyBig Data's Three Big Trends in 2016
6968 views 5 | 22 tweets | 13 linkedin
hands typing furiouslyHow Banks Are Losing Millions by Ignoring...
6431 views 9 | 22 tweets | 8 linkedin
Nordea looking for AI and blockchain breakthroughsNordea looking for AI and blockchain break...
6120 views comments | 17 tweets | 19 linkedin

Featured job

Find your next job