Centrelink Payment Change Starts Next Week- Key Information for Recipients

Centrelink Payment Change Starts Next Week- Key Information for Recipients

Starting June 12, 2025, Australians repaying Centrelink debts at Australia Post branches will need to comply with a newly introduced rule: a minimum payment of $5 is now required for any in-person over-the-counter transactions.

Why Is This Change Happening?

Services Australia has rolled out this update to help streamline the processing of in-person debt repayments and minimize the administrative costs associated with handling low-value transactions.

The change applies to payments made with cash, cheque, credit card, or EFTPOS at any Australia Post location.

What to Do If Your Payment Is Less Than $5

If your intended repayment amount is under $5, you must switch to alternative payment channels such as:

  • Direct debit
  • BPAY
  • Post Billpay Online

These online and automated methods remain fully available and are unaffected by this policy change. In fact, Services Australia recommends that individuals who tend to make small, frequent repayments consider adopting these options for added convenience and greater flexibility.

Recent Changes to Centrelink Debt Repayment Options

This new minimum payment rule follows an earlier policy update: as of December 2024, foreign currency cheques and money orders are no longer accepted for Centrelink debt repayments.

While Centrelink still issues cheques for certain outgoing payments, it is important to note that cheque processing can take up to two weeks longer compared to direct bank deposits.

Multiple Repayment Options Still Available

Australians managing their Centrelink debt have several flexible repayment pathways, including:

  • Lump-sum repayments
  • Setting up a regular repayment schedule
  • Choosing to have automatic deductions from ongoing Centrelink benefits

Important Note for Credit Card Users

If you opt to pay your Centrelink debt with a credit card, be aware that your financial institution may apply interest charges or cash advance fees. It’s advisable to check with your card issuer regarding these possible additional costs.

For detailed guidance on all available repayment methods or to update your current arrangement, visit the Services Australia official website.

The introduction of a $5 minimum repayment rule for over-the-counter Centrelink debt payments at Australia Post, effective from June 12, 2025, is aimed at improving the efficiency of the payment system and reducing processing expenses.

Australians should explore alternative electronic payment options if their repayments are typically below this threshold. By staying informed and adapting to these changes, you can ensure your repayments continue smoothly without unexpected disruptions.

FAQs

When does the $5 minimum repayment rule for Centrelink debts take effect?

The new minimum payment requirement begins on June 12, 2025, for in-person repayments made at Australia Post branches.

What payment methods are not impacted by this new rule?

Direct debit, BPAY, and Post Billpay Online payments are unaffected and remain fully available for Centrelink debt repayments under $5.

Are cheques still a valid method for receiving Centrelink payments?

Yes, Centrelink continues to issue cheques; however, recipients should be aware that cheque payments typically take up to two weeks longer to process compared to direct bank deposits.

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