26 July 2016
Find out more

Australia backs away from abolishing cheques

17 May 2012  |  8210 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  |  6635 views  |  1 comments
RBA launches probe into Oz banking outages

RBA launches probe into Oz banking outages

21 February 2012  |  10933 views  |  6 comments
UK govt plans Payments Council regulation

UK govt plans Payments Council regulation

11 November 2011  |  7726 views  |  0 comments
UK bank u-turn sees cheques saved

UK bank u-turn sees cheques saved

12 July 2011  |  10450 views  |  3 comments
New Zealand considers the future of paper cheques

New Zealand considers the future of paper cheques

06 July 2011  |  5989 views  |  0 comments
Americans want remote deposit capture - Javelin

Americans want remote deposit capture - Javelin

24 May 2011  |  8260 views  |  1 comments
US Treasury prepares to retire cheques

US Treasury prepares to retire cheques

26 April 2011  |  8479 views  |  0 comments
Americans ditching cheques for electronic payments

Americans ditching cheques for electronic payments

09 December 2010  |  10222 views  |  1 comments
Ditching cash and cheques could save Ireland EUR1bn - NIB

Ditching cash and cheques could save Ireland EUR1bn - NIB

09 September 2010  |  12367 views  |  1 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Find out moreVisit www.abe-eba.euVisit capgemini.com

Top topics

Most viewed Most shared
satelliteContactless Bitcoin startup Plutus Tap &am...
9249 views comments | 9 tweets | 4 linkedin
MasterCard agrees £700m VocaLink acquisitionMasterCard agrees £700m VocaLink acqu...
9219 views 14 comments | 32 tweets | 38 linkedin
Apps crush internet for UK banking loginsApps crush internet for UK banking logins
7726 views comments | 18 tweets | 25 linkedin
Thomson Reuters and Imperial College form fintech and regtech research partnershipThomson Reuters and Imperial College form...
5892 views comments | 29 tweets | 16 linkedin
hands typing furiouslyHow machine learning can cut costs on tran...
5891 views 0 | 9 tweets | 2 linkedin

Featured job

Find your next job