Cheque duty will be repealed from 1 July 2014

Cheque duty will be repealed from 1 July 2014, as part of recently enacted legislation announced in Budget 2014. This special report provides early information about the changes to cheque duty. The Government recently decided that cheque duty should be repealed, as:

  • the duty no longer raises substantial revenue and the revenue raised is in decline; and
  • cheque duty is easy to avoid, since closely substitutable transaction types (such as cash, EFTPOS, internet banking and credit card transactions) are not subject to any duty. It is therefore inefficient and has a small distortionary effect.