Navigating the financial landscape can be daunting, especially for those who have seen the world change in more ways than one.

However, there's a wealth of financial wisdom to be uncovered, often hidden in plain sight.

Today, we're discussing a particularly relevant topic to many members: the upcoming reforms to Services Australia's Centrepay system.

Centrepay is a lifeline for many Australians, especially those over 60 who rely on Centrelink payments to manage their day-to-day expenses.

It's a free bill-paying service that simplifies budgeting by allowing Centrelink customers to allocate regular deductions from their payments for essential services like rent, utilities, and phone bills.

The Centrepay system is being reformed by Services Australia, with changes set to start in 2025. Credit: Shutterstock

This system ensures that important bills are paid on time, providing peace of mind and financial stability.

However, change is on the horizon. Services Australia has announced that it will reform Centrepay in 2025 to enhance its users' service.

The government has identified five critical areas for improvement, and stakeholder engagement is underway.

For now, Centrepay customers can rest easy; they don't need to do anything until the reforms are finalised and will be contacted with updates in due course.

The proposed improvements are designed to empower customers, allowing them to manage their expenses more effectively, purchase goods and services, and ultimately improve their financial independence.

But what exactly are these changes, and how will they affect you?

Firstly, Services Australia has temporarily suspended applications from new businesses wanting to register for Centrepay.

This pause will remain in effect while the consultation period is ongoing, but existing businesses can continue to operate as usual.

The areas under review include Centrepay policy and contracts, the number of service reasons, the business application and onboarding process, compliance processes, and complaints.

The goal is to streamline the service, making it more user-friendly and efficient.

For instance, reducing the number of Centrepay service reasons could simplify customers' choices, while updating the business application process might make it easier for reputable businesses to join the system.

Strengthening compliance and improving the complaints process is crucial to ensuring the service remains fair and responsive to customer needs.

Services Australia is committed to engaging with various stakeholders, including consumer advocacy groups, Centrepay customers, communities, and government agencies.

This collaborative approach is intended to ensure that the reforms truly reflect the needs and concerns of service users.

As part of the reform, Services Australia is also looking to remove high-risk goods and services from Centrepay, enhancing the system's safety and integrity.

Additionally, contracts are being revised to be more enforceable, with clearer actions to be taken against businesses that fail to comply with their obligations.

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

Key Takeaways

• Services Australia is reforming its Centrepay system, a free bill-paying service available to Centrelink customers, with changes expected to start in 2025.
• Five key areas of the Centrepay system are set to be changed, including policy review, service reasons reduction, business application process, compliance strengthening, and complaints process improvement.
• A consultation is underway, with stakeholder engagement involving consumer groups, communities, and various government agencies.
• Centrepay will remove high-risk goods and services and make contracts more enforceable against non-compliant businesses.

What are your thoughts on the upcoming Centrepay reforms? Have you had positive experiences with the service, or are there areas you believe need improvement? Share your stories and insights in the comments below.

 

[Glendamaymac]

We have our Rates, Electricity, Gas and Water all taken out ( fortnightly) by Centrepay. No problems and don't need to worry about finding the money when bills come in or budgeting for them. Love it

 

[Di_T]

It will be interesting to see the end product ..it will give us an insight as to what to expect.
It appears that the Government are in the throes of implementing and improving the present
system at least they are trying to make life easier for one and all..
OR am I wrong in assuming this ?

I agree I don’t believe it is compulsory it’s there if you want it

 

[Nellcor]

It’s about time.
After my husbands death I just couldn,t handle it. I was due get $47K worth of help but had to pay $18K first. The endless form filling was impossible to cope with as I had never had anything to do with our finances.

 

[Rosi Gordon]

Definitely agree - more attempts at Govt control!

It's not government control as you are free to not use it, it's purely optional.

 

[Reet]

well, did not know of this service, do currently use direct debit for most of my utility accounts, but feel this may be a better option,many thanks for the intel, shall pursue this a little further

Was completely unaware of this service. I like to pay my own bills and know that they are paid. Knowing the trouble Centrelink have got into in the past I would not trust them to pay my bills on time.

 

[Rosi Gordon]

I like to do things my own way, I don't need the Government to make thing the way they want, I have a mind of my own and know how to use it, I only pay cash and I get what I need just by going to the ATM get my money out and do what I want with it. I don't need the interference of the Government

Nobody is making you use this service as it is optional for those who can't manage.

 

[Annemarie]

I actually prefer my 'Self-managed' version of Centrepay whereby I have set up automatic payments via my online banking accounts for all of my regular bills. As soon as my pension comes in, everything is automatically paid overnight the same day. Another amount is automatically set aside for all other sundry payments, plus a third amount is automatically transferred into a separate savings fund. With online banking, you can easily manage your finances and make regular, automated payments and money transfers anyway. Why bother with Centrepay?

I do the same and also have an account for Bills and another for Medical Expenses with monies automatically being transferred to these accounts every fortnight. My body might me failing me, but my mind isn't. Internet banking makes things so easy.

 

[Towing]

Beware ----I received an email stating that if I didn't notify Centrelink / (whatever the name of the Dept they "belong" to) my Aged Pension would be stopped - I don't get one.

 

[Reg47]

As an Age Pensioner (prior a disability), I have AND do use “Centrepay” for Phone and Electricity accounts the FREE service is a way of ensuring bill payments come out of PENSION before funds ($.c) are sent to client (ME) BEFORE BALANCE of PENSION is paid by Department.
Very Good and Usefull SERVICE, ps: I CAN ADUST DEDUCTIBLE AMOUNT ON ON-GOOING BASIS SHOULD NEED ARAISE SIMPLY BY PHONING THE DEPARTMENT.

 

[Itsherself]

Until they sort out this extra income that we supposedly are allowed to earn and stop cancelling of reducing our aged pensions because we forget to report fortnightly do not introduce any more stresses on us.

 

[LITTLE RED ROBIN]

PLEASE dont fiddle with it too much and STUFF IT UP

 

[MarianCatherine]

HAve been budgeting my money , don't need the Government telling me what and where to spend my pittance should I say crumbs on.

Many disabled people have their rent and some services paid by Centrelink, as this doesn't affect the daily limit from banks. This is a very helpful service, all our accounts are with the same bank, so if my daughter had to pay her rent and services as a direct pay, this affects our daily limit too. We came across this one day when I had to a bill but couldn't because my daughters rent and her board and loadgings came out on the same day, with a bank Direct Debit, which then put us over the daily limit for the day. So by using Centrepay, this has worked really well for us.

 

[Rosi Gordon]

HAve been budgeting my money , don't need the Government telling me what and where to spend my pittance should I say crumbs on.

Government is not telling you where to spend your money, it an optional service. If youre not quite happy to accept their crumbs while not working, get a job.

 

[Rosi Gordon]

Many disabled people have their rent and some services paid by Centrelink, as this doesn't affect the daily limit from banks. This is a very helpful service, all our accounts are with the same bank, so if my daughter had to pay her rent and services as a direct pay, this affects our daily limit too. We came across this one day when I had to a bill but couldn't because my daughters rent and her board and loadgings came out on the same day, with a bank Direct Debit, which then put us over the daily limit for the day. So by using Centrepay, this has worked really well for us.

I'm with CBA and any direct debit doesn't affect my daily limit.

 

[MarianCatherine]

I actually prefer my 'Self-managed' version of Centrepay whereby I have set up automatic payments via my online banking accounts for all of my regular bills. As soon as my pension comes in, everything is automatically paid overnight the same day. Another amount is automatically set aside for all other sundry payments, plus a third amount is automatically transferred into a separate savings fund. With online banking, you can easily manage your finances and make regular, automated payments and money transfers anyway. Why bother with Centrepay?

By doing this way, it affects your daily limit from banks. so if you got out and want to pay for something on the same day as your direct debits, it puts you over the daily limit...so be careful

 

[Rosi Gordon]

I'm so happy that our mummy Wong and daddy Albanese and uncle Chalmers want to help us pay our bills.I have full confidence in our lovely mummy and daddy because I can only stand in awe of the majestic achievements they have made in our Australian economy. Look at all their promises they made while they were campaigning and the incredible outcomes after nearly three years in government!!! Look at all the money they shelled out on us to compensate for the bothersome inflation and all these nasty rising costs that they surely have under control and they are certain that things will change if we elect them back in at the next election. And now they want to "help" us pay our bills. Yay!!!!

This service has been in long before Labour has been in government so before pointing the finger on who's to blame do your research

 

[MarianCatherine]

I'm with CBA and any direct debit doesn't affect my daily limit.

We are with WestPac and it does affect us.

 

[Franka]

I have managed our pension by direct debit for rent, utilities and savings. Over that time have only defaulted on one payment when the bank was slow to transfer my money to cover the bill. That was sorted easily by phoning the company and explaining what happened. The company as great and retried the DD at the time I nominated when the money would be in the account. No fee for no funds in account and the company changed the day to take the payment from Thursday to Friday. Would that happen with Centrepay????

 

[Singomate]

Government is not telling you where to spend your money, it an optional service. If youre not quite happy to accept their crumbs while not working, get a job.

76 with cancer and buggered knees would you employ????

 

[jay2]

Do not like

I would not trust Centre link to do any thing. What ever they do takes forever for them to do. Putting your affairs in their hands is like playing Russian Roulette. jay2