Inland Revenue and ACC will stop receiving cheques as payment from next March.
Inland Revenue said about 5 percent of payments received by it and ACC last year were by cheque.
Deputy Inland Revenue commissioner Sharon Thompson said the organisation will help customers switch to other ways to pay.
"Cheques are part of a paper-based world and don't mesh with the increasingly digital world we now operate in. The number of cheques being used is spiralling down and will continue to trend that way.
"Electronic payments are simpler, easier and safer."
People will still be able to pay both organisations with cash or eftpos, but only at Westpac banks, and not at ACC or Inland Revenue branches.
In the last financial year Inland Revenue received 430,000 cheques, the biggest number received by any public agency.
In May, Kiwibank became the first retail bank to scrap cheques, and is stopping issuing new chequebooks from this month, and will not accept from next February