Effects of banded biochar application on dryland wheat production and fertiliser use in 4 experiments in Western Australia and South Australia suggest that biochar has the potential to reduce fertiliser requirement while crop productivity is maintained, and biochar additions can increase crop yields at lower rates of fertiliser use. Banding was used to minimise wind erosion risk and place biochar close to crop roots. The biochars/metallurgical chars used in this study were made at relatively high temperatures from woody materials, forming stable, low-nutrient chars. The results suggest that a low biochar application rate (~1 t/ha) by banding may provide significant positive effects on yield and fertiliser requirement. Benefits are likely to result from improved crop nutrient and water uptake and crop water supply from increased arbuscular mycorrhizal fungal colonisation during dry seasons and in low P soils, rather than through direct nutrient or water supply from biochars. Financial analysis using farm cash flow over 12 years suggests that a break-even total cost of initial biochar use can range from AU$40 to 190/ha if the benefits decline linearly to nil over 12 years, taking into account a P fertiliser saving of 50% or a yield increase of 10%, or both, assuming long-term soil fertility is not compromised. Accreditation of biochar for carbon trading may assist cost reduction.