A major change coming to Centrelink before Christmas will disproportionately affect Australians who prefer to pay by cash or cheques.
From 19 December, foreign currency checks and postal orders will no longer be accepted as payment methods for Centrelink debt recovery.
Pensioners are being informed about the shift to digital payment methods in Services Australia’s annual Australian Pension News (APN).
“If you need to pay a Centrelink debt, you will now need to use a different payment method, outlined in your debt letter,” the update said.
“There is no change to the way you are paid your Centrelink payment.”
Centrelink still pays some recipients with cheques, but it takes longer to reach them and could cost them interest payments.
Check payments to pensioners arrive at least two weeks after payments delivered via direct deposit, according to APN.
However, the publication warns that those deliveries could arrive even later “due to delays in mail delivery.”
A major change is coming to Centrelink before Christmas (pictured, a Melbourne office)
Older Australians and those who prefer to pay with cash or checks will be affected (shares)
Check payments in general will also be phased out by 2030, the government announced last year.
The phased transition plan will involve “working with (government) agencies and departments with high check usage.”
Business and government checks will stop being issued starting in 2026, while the government will stop accepting check payments in 2028.
Use of the payment method in Australia is scheduled to end completely by the end of 2030.
In the 1980s, 85 percent of all noncash payments were checks, but they have long been surpassed by credit and debit cards, as well as direct deposits.
Those who still use checks are mostly older people, many of whom have not been able to familiarize themselves with digital alternatives such as online payments.
To make matters even more complicated for those who prefer cash, half of the ATMs in use in Australia have been removed since 2019.
The 2023 Australian Digital Inclusion Index found that one in four Australians are digitally excluded due to the pace at which technology evolves.
To further complicate matters for those who prefer cash, half of the ATMs used in Australia have been decommissioned since 2019 (pictured, an ATM in Sydney).
It has found that online options are sometimes the only way to access vital services such as finances, health and education, participate in cultural activities, catch up on the news and connect with family and friends.
In addition to older people, remote indigenous communities and people with lower incomes are at greater risk of exclusion, according to the report.
The Australian Attitudes to Getting Online 2024 report found 20 per cent of people struggled to be safe online and almost three quarters of people with disabilities were not comfortable keeping up with changes in technology.
Australia is far behind many other countries in phasing out the use of checks; Denmark, for example, ended its use in 2001.