From 1 October 2014 customers will no longer be able to make cheque payments or drop off returns or forms at a Westpac branch for Inland Revenue Department (IRD) payments.
As customers can post cheque payments, returns and forms directly to IRD, they have decided to remove these services at Westpac. Customers can continue to make payments using online banking, credit and debit cards and international money transfers.
IRD are encouraging customers to make payments online. Digital payment channels are secure and faster than traditional payment methods, and are available 24 hours, seven days a week. They are also encouraging us, as tax agents, to use their E-file service to lodge your tax returns
Paying on time
From 1 October 2014, payments posted to IRD need to be received by IRD on or before the due date to avoid payment penalties and interest. This means cheque payments can no longer be posted on the due date.
Over 70% of the IRD payments are currently made online and they want to encourage more customers to pay electronically. Removing the unintended advantage to customers who post cheque payments on the due date enables equally treatment to all customers, regardless of their payment method.
If you have any further questions about these changes, please contact your accountant to discuss.