New Payment Rule Introduced
Centrelink Payments Update: From June 12, 2025, a $5 minimum applies to all in-person repayments at Australia Post outlets. The change affects cash, cheque, credit card, and EFTPOS transactions nationwide.
Smaller Repayments Must Use Alternative Channels
If a repayment is below $5, individuals must use alternative payment options. These include BPAY, direct debit, or Post Billpay online services. Services Australia encouraged users who make frequent small repayments to consider these options. This update is part of broader efforts to streamline operations and reduce low-value transaction handling costs.
Existing Methods Still Available
Recipients can still repay debts in lump sums or through arrangements. Services Australia continues to support payment deductions directly from ongoing benefits. Online repayment management remains available through linked myGov accounts. Recipients can sign in and select “Money you owe” to manage debts.
Cheques Still Accepted for Now
Centrelink continues issuing cheques for payments despite recent changes. However, recipients are advised that cheques can take up to two weeks longer than direct deposits. Services Australia recommends direct bank transfers for faster access to funds.
Recent Changes to Payment Methods
The new $5 minimum follows a previous policy change in December 2024. Foreign currency cheques and money orders are no longer accepted for debt repayments. The policy aims to reduce processing complexity and improve payment reliability.
Multiple Payment Options Remain
Australians repaying Centrelink debts still have three primary repayment choices. These include full repayment by the due date, setting up a regular repayment plan, or authorising deductions from ongoing Centrelink payments. Each method offers flexibility based on individual financial situations.
No Interest if Terms Are Met
Services Australia clarified that repayment arrangements do not incur interest if conditions are met. Individuals must make the first repayment by the due date and maintain agreed terms. This approach aims to support long-term compliance without financial penalties.
Financial Support Available
Services Australia offers assistance to recipients experiencing financial hardship. A dedicated debt recovery line is available for those needing flexible repayment solutions. Disaster-affected individuals may also request to pause or adjust repayment schedules.
Repayments and Credit Ratings
Centrelink confirmed that unpaid debts do not affect personal credit ratings. However, action may be taken if no repayments begin by the due date. Recovery methods can include tax refund offsets or recovery on behalf of other government agencies.
Also Read: Centrelink Countdown: 400,000 Families Must Confirm Income or Lose Benefits
Fees for Credit Card Payments
Centrelink recipients using credit cards for repayments should check with their banks. Financial institutions may charge interest or cash advance fees. Services Australia does not add these charges but advises caution for those using credit cards.
Encouragement to Review Payment Options
Services Australia urged Centrelink recipients to review repayment methods based on their circumstances. Factors to consider include budgets, other debts, and the desired repayment timeline. The agency provides examples to help users select suitable options.
Online Management via myGov
Online tools remain the most flexible option for managing Centrelink debts. Users linked to myGov accounts can access payment details, update repayment plans, and make payments. These services offer secure and convenient access for Australians managing Centrelink obligations.
Centrelink Payment Increase Not Affected
The new $5 minimum rule does not impact ongoing Centrelink payments increase schedules. Recipients receiving benefits will continue receiving entitlements as per the existing rates. The update strictly applies to repayments made through post office counters.
Centrelink Urges Compliance Ahead of Change
Services Australia reminded all Centrelink debtors to comply with the updated rules starting 12 June 2025. The agency aims to ensure smoother payment processing and fewer administrative delays. Recipients are encouraged to transition early to digital methods if affected.
Conclusion
Centrelink continues to update debt repayment policies to improve efficiency. The $5 minimum in-person repayment rule reflects a shift towards digital and streamlined methods. Australians using Centrelink services are urged to review and adjust payment methods accordingly. For further information, individuals should visit the official Services Australia repayment guide.
