Centrepay changes land on 1 November
The Centrepay changes mean Services Australia is removing some service reasons from Centrepay, and any deduction set up for one of them will stop from 1 November 2026. Services Australia says there will be no extensions beyond that date. It has already contacted affected businesses directly and says their next step is to help any remaining Centrepay customers move to another payment method before the deadline. Businesses having trouble contacting customers can call Centrepay for businesses on 1800 044 063.
The seven payment types being switched off
Services Australia lists these service reasons as being removed from Centrepay:
- Basic household items: such as clothing, footwear, furniture and appliances.
- Household goods lease and rental: payments towards a regulated lease for whitegoods, electrical items or furniture under the National Consumer Credit Protection Act 2009.
- Funeral expenses: such as funeral plans, funeral bonds, prepaid funerals or actual funeral costs.
- Employment expenses: such as tools of trade, work uniforms, training, and protective clothing and footwear.
- Social and recreational commitments: including sporting activities and equipment, church donations, sponsorships, and musical activities and equipment.
- Savings deposits: deposits made to microfinance savings plans.
- Motor vehicle registration.
What to do if your deduction is affected
Under the Centrepay changes, Services Australia says anyone with a deduction for one of these service reasons needs to speak to the business and arrange another way to pay. If that is not done by 1 November 2026, they may be at risk of arrears.
Centrepay can still be used with approved businesses for things like rent, bond and arrears, utilities, education costs, health costs, and finance and insurance services. Services Australia has also changed the criteria for legal and professional services, travel and transport, and food provision, so check with the business whether Centrepay can still be used for those. NewsCop has also reported on a $4.7 million boost for frontline relief services and the National Debt Helpline.
Other deductions get new conditions
Not every deduction is being switched off. The Centrepay changes also add mandatory conditions to some others. Deductions for home-care and trade services, the school meals program, child care services, education expenses, and disability and community services must now include an end date.
Other deductions must now include a target amount. These are ambulance services, medical services and equipment, community group loans, no interest loans, general community housing loans, special interest loans, court fines, court infringements, legal services, travel and transport services, food provisions for remote areas, and veterinary services.
Services Australia says the wider reform behind the Centrepay changes is aimed at increasing customer protections, removing high-risk products or services, and helping customers and businesses manage complaints. It also says businesses must not pass Centrepay transaction fees on to customers, and must have a customer’s consent when they start, restart or increase a deduction.
Where to get help
Anyone worried about the Centrepay changes or under financial pressure can talk to a Services Australia Financial Information Service officer for free, and can also find out about its social worker services. Customers who are having trouble working out a Centrepay issue with a business can contact Centrepay complaints and feedback.
Related: Centrelink payments increase, but not enough for job seekers (March 2023).
General information only, not legal advice. Check the official source before acting.
Source: Services Australia and Services Australia notice for businesses. Licence: CC BY 4.0.
