Centrepay, the voluntary bill-paying service by which Centrelink recipients are assisted to have bills paid to them out of their payments, is also undergoing significant reforms beginning November 2025. These reforms are intended to expand protections, curtail abuse and to more closely match the service with its initial intended goal of settling regular and necessary bills. A decrease in the number of service reasons, more rigid business enrolment and compliance regulations will be seen as a way of promoting financial independence and protection of vulnerable customers .
| Aspect | Before Nov 2025 | After Nov 2025 |
|---|---|---|
| Service Reasons | Broad range including high-risk | Reduced, excluding high-risk |
| New Business Applications | Open | Temporarily paused for reform |
| Deduction Limits | Often no end date or target | Mandatory end dates/targets |
| Compliance Enforcement | Basic | Strengthened enforcement |
| User Control | Flexible | Continued flexibility with more safeguards |
Centrepay definition and functionality What is Centrepay and How It Works.
Centrepay enables customers of Centrelink to arrange deductions to their payments to meet their rent, utility and phone bills. The money deducted is deposited in registered businesses when the money is used to settle bills on time and to assist the clients to manage their budget. The service is voluntary and free and the users can initiate deductions, switch deductions, or cancel deductions at any time. It is necessary to point out that Centrepay transactions are only made with authorised businesses registered with Services Australia.[2][4].
Key Changes Coming November 2025
The following key changes are made in the reform which will be effective on 3 November 2025:
– Dropping of some of the reasons of service found to be high-risk or low-utilizing, like household goods leases, funerals, and social/recreational obligations.
– New Centrepay business applications are on hold with compliance and eligibility standards being increased.
– Deductions will have mandatory end or target dates to avoid open-ended debts.
– strengthened compliance and enforcement will keep the businesses accountable.
– An easier and standard deduction authority form will be introduced to all businesses..
Deductions in place due to removed service reason may be extended to a maximum of 12 months, however, going forward no new deductions may be made after the reform date due to removed service reason. Users have been advised to consider alternative ways of paying these excluded costs.
Why These Changes Matter
Consumer advocates applaud these reforms as they bring back the initial purpose of Centrepay, which is to enable the necessary payments of bills that are used to avoid inappropriate misuse and financial abuse. The move safeguards those in need, such as communities in far flung areas and diverse cultural settings, by eliminating the risk of predatory debts and offering better avenues of complaints.
How to Adjust to the Changes
Centrepay users who have already deducted service reason due to any of the reasons provided are advised to find other alternative ways of payment by November 2026 when the grace period is over. Services Australia also provides channels of support such as financial counselling and direct negotiation of business arrangements on new payment. It is simple to access deductions through myGov portal or the Express Plus Centrelink app.
Frequently Asked Questions
Is it possible to add new Centrepay deduction after November 2025?
There will not be any new deductions on absenteeism on service reasons after 3 November 2025. To the extent caused by other service reasons, the new rules may still be the subject of new deductions.
What will happen to my existing Centrepay deduction on a removable service reason?
You will be able to carry over this deduction not later than November 2025. Then you will have to change to some other payment method.
How can I change or edit my Centrepay deductions?
The deductions can be commenced, ceased or amended at any time by the user in their myGov account, in the Express Plus Centrelink iPhone application, or by calling Services Australia directly.[4].
These reforms represent an important move in making Centrepay a more secure and trusted tool in ensuring that important Bill payments get made and vulnerable Australians are not subjected to financial risks associated with ill use of this service.
