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.

We’re working with stakeholders to reform Centrepay to help improve the service.

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

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.

Consultation

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 reform discussion paper consultation

We invited our community of customers, businesses and advocates, to send submissions about Centrepay through the Centrepay reform discussion paper.

The paper was available through the Department of Social Services (DSS) Engage platform, from 20 May to 10 July 2024.

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.

Centrepay priority reforms

Informed by our Centrepay reform consultation and engagement, we’ve identified 5 priority areas for reform:

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

You will have an opportunity to provide feedback in 2025 before final decisions are made on the reforms.

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

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.