Money Orders Australia 2025: Still Useful or Outdated?

Once the go-to solution for safe, traceable payments, money orders now face stiff competition from digital alternatives. As the Australian financial landscape continues to digitise, are money orders outdated relics, or do they still have a role in 2025? Let’s dive into what money orders are, how they work, their costs and use cases, and whether they deserve a place in your financial toolkit this year.

What Is a Money Order and How Does It Work?

A money order is a pre-paid paper payment—essentially a guaranteed cheque—that allows you to send funds securely without a bank account. In Australia, Australia Post remains the primary issuer, though banks and select financial providers also offer them. You pay the issuer the face value plus a small fee, and the recipient can then cash or deposit the order at their local post office or bank.

• Safe for sending money: No need to reveal bank details, and money orders are traceable and can be replaced if lost or stolen.
• Pre-paid and guaranteed: Funds are secured upfront, so there’s no risk of a bounced cheque.
• Limits: In 2025, single Australia Post money orders are capped at $1,000 per order, with ID required for larger transactions or multiple orders.

Why Do People Still Use Money Orders in 2025?

With PayID, Osko, and dozens of instant digital payment services, it might seem odd that money orders are still around. But there are several scenarios where they remain useful:

• No bank account needed: For unbanked Australians, money orders offer a secure way to pay rent, bills, or send money to relatives.
• Transactions with strangers: Buying a used car or paying a landlord? Money orders can be safer than carrying cash.
• Remote or offline payments: Not every community or organisation accepts digital transfers—especially in rural or older populations.
• Legal and government processes: Some government agencies, courts, and legal settlements still require payments via money order for traceability.

While digital adoption is surging (with over 90% of Australians using online banking as of early 2025), the Reserve Bank of Australia notes that demand for money orders persists in niche situations, particularly for vulnerable groups or those wary of cybercrime.

Money Order Costs, Pros and Cons in 2025

Money orders aren’t free, and their fees have crept up with inflation and higher administration costs. Here’s a quick breakdown:

• Australia Post money order fee: $13.50 per order (as of March 2025).
• Replacement/cancellation: $18.00 fee for lost, stolen, or cancelled orders.
• Delivery time: Immediate if collected in person, 2–6 business days by post.

Pros:

• Secure, traceable, and not linked to your bank account.
• Widely accepted for certain legal and government payments.
• Provides financial access for those without digital banking.

Cons:

• High fees compared to free digital transfers.
• Slower, less convenient, and requires physical collection.
• Limits on amount and more paperwork for large sums.

It’s also worth noting that some banks and post offices are phasing out money orders, and several fraud cases in recent years have led to stricter ID checks and reporting requirements under Australia’s updated 2025 anti-money laundering laws.

Should You Use a Money Order in 2025?

If you have access to digital banking, money orders are rarely the most convenient or affordable option. But if you need a secure, paper-based payment that’s accepted by the recipient and offers traceability, they still have a place—just expect to pay for the privilege. For many, money orders are now a last resort, not a first choice.

Before you buy, check if a bank transfer, PayID, or other digital method is accepted. If not, and you value security or anonymity, a money order remains a valid tool in 2025—especially for specific legal, remote, or unbanked scenarios.