Criminal Code Act 1899

Any person who—

obtains from any other person any chattel, money, valuable security, credit, benefit or advantage by passing a cheque that is not paid on presentation for payment; or

passes a cheque in the discharge or attempted discharge of any debt, liability or obligation, which cheque is not paid on presentation for payment;

is guilty of a misdemeanour and is liable to imprisonment for 2 years.

It is a defence to a charge of an offence defined in this section to prove that the accused person—

had reasonable grounds for believing that the cheque would be paid in full on presentation for payment; and

had no intent to defraud.

The fact that at the time when the cheque was passed there were some funds to the credit of the account on which the cheque was drawn is not of itself a defence to a charge of an offence defined in this section. sch 1 pt 6 div 1 ch 40 s 427A ins 1975 No. 27 s 17