Centrepay reform

Centrepay is a voluntary bill paying service which is free for Centrelink customers. Centrelink customers can use Centrepay to arrange regular deductions from their Centrelink payment.

Our approach

As we reform Centrepay, we’ll address the following:

• safeguards and protections for customers to reduce financial harm
• making sure the right products and services are available through Centrepay
• identifying high-risk products, services and business practices
• use of Centrepay as a tool for financial empowerment and self-management
• rules and obligations for businesses using Centrepay
• Centrepay compliance and complaints.

These improvements will help customers to manage their own expenses, buy goods and services and help improve financial independence.

Who we’ve been working with

As we reform Centrepay, we’ve consulted with the following stakeholders:

• consumer advocacy groups
• Centrepay customers
• communities
• state and federal government agencies
• Centrepay businesses
• regulatory bodies.

Talking to a wide range of stakeholders has helped us understand the needs and benefits of customers including:

• Aboriginal and Torres Strait Islander peoples
• people living in remote communities
• older Australians
• people with disability
• culturally and linguistically diverse people.

Throughout this process we’ve focused on building capability for continued change and developing strong networks and partnerships.

Centrepay priority reforms

We have focused on 5 key areas of reform:

• Centrepay policy
• Centrepay service reasons
• Centrepay businesses
• Centrepay compliance
• Centrepay complaints.

We propose to make several important changes to better protect our customers. These proposed reforms seek to strengthen safeguards and protections for customers and bring Centrepay in line with its original purpose as a regular bill-paying service.

Watch our video update which outlines the proposed Centrepay reforms.

You can find out more about our 5 priority areas for Centrepay reform and what this means for you as a business.

Consultation

As part of our reform work, we’ve been working with stakeholders to help improve the service.

In 2024, we invited our community of customers, businesses and advocates, to send submissions to us about Centrepay and how it could be improved to better support and protect our customers.

You can access a copy of the Centrepay reform discussion paper, the submissions and a supporting summary report by going to DSS Engage on the DSS website.

On 31 March 2025, we’ll begin a second round of public consultation. This round of consultation invites input and feedback from businesses, customers and the broader community on the proposed changes to Centrepay being considered by us.

As part of this consultation round, we would like to hear from you on how the proposed changes to Centrepay might affect you or your business.

You’re invited to submit your feedback.

Submit your feedback on the DSS website.

Submissions close at 11.59 pm on 21 April 2025.

Pausing applications to be a Centrepay registered business

We aren’t accepting new business applications while we reform Centrepay.

Existing businesses will continue to get their Centrepay deductions from customers.

Centrepay obligations letter

In 2024 we sent letters to all businesses registered for Centrepay. In our letter, we outlined Centrepay compliance obligations and encouraged businesses to do an internal review to make sure they meet those obligations.

If you’re a business registered for Centrepay and didn’t get a letter from us, contact the Centrepay for businesses team for a copy. You can tell us if you need help to understand your obligations and responsibilities under the framework.

Volunteer to withdraw

If you’re a business registered for Centrepay and can no longer comply with the Centrepay requirements, you can withdraw from the Centrepay program in accordance with clause 19 of the Centrepay policy and terms.

To withdraw, your business must write to the Centrepay for businesses team at least 20 business days before the withdrawal date.