If you’re an Aussie living abroad and receiving Centrelink payments, you need to know about a major change that’s kicking in this week.
From December 19, you’ll no longer be able to make payments to Centrelink using foreign currency cheques or international money orders.
What’s Behind the Change?
Services Australia has announced that it can no longer accept these types of payments due to changes in the Australian payment system. This shift is part of a broader move to phase out cheques over the next five years.
Who Will Be Affected?
This change will impact those who live overseas and:
- Make child support or spousal maintenance payments
- Are repaying a Centrelink debt
If this sounds like you, don’t worry – we’ve got you covered.
What You Need to Do
From now on, you’ll need to use an electronic payment method to send foreign currency to Centrelink. This might take some getting used to, but it’s a more efficient and reliable way to make payments.
Good News: Your Centrelink Payments Won’t Be Affected
Don’t worry, this change won’t affect how you receive your Centrelink payments. You’ll still get your money, just without the option to make payments to Centrelink using cheques or international money orders.
Say Goodbye to Cheques
Cheques are becoming a thing of the past. By June 30, 2028, they’ll no longer be issued, and by September 30, 2029, they won’t be accepted anymore.
Why the Shift?
Treasurer Jim Chalmers explained that the usage of cheques has declined by a whopping 90% over the last ten years. Many banks and financial institutions are ending cheque issuance for new customers, making it clear that it’s time to move on from this outdated payment method.
What About Foreign Cheques?
Foreign cheques won’t be part of the cheque transition plan because they’re processed differently and have separate rules. So, if you’re relying on foreign cheques, you don’t need to worry about this change.
The Rise of Digital Payments
It’s no secret that digital payments have taken over. At the height of cheque usage in the early 1980s, they made up about 85% of non-cash payments. Fast forward to 2022, and cheques accounted for a tiny 0.1% of all consumer payments. It’s clear that Aussies have moved on to more efficient and convenient payment methods.