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.

 

[Rick Mortton]

I have my rent deducted by Centre Link and what little is left all my major bills are paid by Direct debit and snooze till the day before so I can make sure there is enough money in my account to pay the bill. I also have PayPal to pay all my other accounts
I do not need the Goverment to handle the little money that is left

 

[Luciemcm]

This is something that has been in place in Europe for year.

 

[Ivory]

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

I’ve seen this system in operation in many situations through my work. It think it’s an amazing system that provides a level of support exactly how the individual needs it to function. I direct debit all our utilities, insurances etc but would utilise the Centrepay system in a heartbeat if I needed to.

 

[Ivory]

It’s a system I’ve seen in practice while working with people with disabilities and long term unemployed people with multiple and complex non-vocational barriers to employment. All these individuals were reliant on Centrelink benefits and were living payment to payment. By having rent and utilities paid prior to receiving benefits individuals were left with less budgeting worries and in most cases managed better once Centrepay was in place. It gets a massive tick from me, I’ve seen it in action and the client keeps control.

 

[IAN3005]

I would never let the government handle my money

 

[Rellybee]

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

Pittance/Crumbs ??...l think those on Centrelink payments should be grateful for what they receive !..l am a pensioner,cope ok...l watch my money just as l did when l worked all my life...and l do not believe the government is telling us where to spend our money on.

 

[mOiOz]

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!!!!

Wouldn't it be nice if Albanazi and Bong gave us look-alike piggy banks of their faces, every Christmas, so we could have the delight of smashing them open the following Christmas to feed and home all those poor refugees?
Or, maybe that too, is more recognition than their worth!

 

[Willowis147]

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

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

Singomate.
How many years did you work.?
What sort of employment did you have.
The Government are Not Telling us where we can spend our money...But unfortunately not every is savey with their pension..i have direct debits done by my pension bank..my Private health cover..and debuts in Transferred to another Institution..and my Car & House insurance..plus a couple of other payments from that institution..
because.that Credit union pays better Interest..i also have 2 other accounts.with my pension bank..a set amount towards a holiday..and another i stash the odd spare $$ into that account and it is all on my phone..i have used the Cents pay scheme for a Speeding Fine... payment by Drip feed..i also Borrowed against my pension to pay an Extremely big Veterinary account. They the Centa payed the bill and took out a set amount every pension day..till what i borrowed was paid back then my pension reverted to my full Pension.. but My Hand Doesn't Shake on Pension Day. Because i worked past retirement age...
Casper.

 

[Jerry Attrick]

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

Who is blaming who, Rosi? Hmmmm?

 

[Willowis147]

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.

Well that is something only you are responsible for..i have worked from 14 years of age to well past Retirement age. I managed my money ..i certainly did not hand my.pay to my then Husband..i had a block of land that was Mine..we built on that block and the house went into joint names, after 23 years..he got caught with his hands in another female cookie jar..he thought he was going to get Half...No. he was So Wrong he only got ,30% so i raised and educated our Son..i bought another block of Land..i built a home on it for my Son & I.. as his father was a drunken womaniser and had his illegitimate son pay for..So my Home is now freehold..and when i shuffle off i have a legacy for my Son and i know my Son has a Home.. No Woman should ever allow .the loss of their independence or allow themselves to have NO Financial knowledge of how to exist or how to manage money & or pay the bills..

 

[Willowis147]

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

Why don't you check the facts before posting utter Bull dust...this by as been in gor a great many years..it is a help to those who can't manage their money..
Same as you can borrow money from your future Pension and centre pay take so much out until the debt has been payed...it is a big help at times..
Been there & done that.

 

[Willowis147]

I have my rent deducted by Centre Link and what little is left all my major bills are paid by Direct debit and snooze till the day before so I can make sure there is enough money in my account to pay the bill. I also have PayPal to pay all my other accounts
I do not need the Goverment to handle the little money that is left

No you have it under control...the Government are only trying to help those who can't.manage.tbeir.money..it is not compulsory..

 

[Willowis147]

This is something that has been in place in Europe for year.

 

[Willowis147]

And it jas been available for a great Many Years here..you can have them pay your bills on your behalf or even Borrow an amount..and they take so much out per fortnight.till the debt has been repaid..
Then your Pension reverts to the normal amount.

 

[Willowis147]

Wouldn't it be nice if Albanazi and Bong gave us look-alike piggy banks of their faces, every Christmas, so we could have the delight of smashing them open the following Christmas to feed and home all those poor refugees?
Or, maybe that too, is more recognition than their worth!

 

[Orangegirl]

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

It is a service, like autopay or Bpay, that can be set up from your Centrelink payments/pension to pay utilities, etc. It has nothing to do with how you budget or the government telling you where to spend your money! Perhaps do research before negatively commenting on an excellent scheme.
"Centrepay is a voluntary bill paying service which is free for Centrelink customers. You can use Centrepay to arrange regular deductions from your Centrelink payment."

 

[Orangegirl]

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

"Centrepay is a voluntary bill paying service which is free for Centrelink customers. You can use Centrepay to arrange regular deductions from your Centrelink payment."

 

[Singomate]

Singomate.
How many years did you work.?
What sort of employment did you have.
The Government are Not Telling us where we can spend our money...But unfortunately not every is savey with their pension..i have direct debits done by my pension bank..my Private health cover..and debuts in Transferred to another Institution..and my Car & House insurance..plus a couple of other payments from that institution..
because.that Credit union pays better Interest..i also have 2 other accounts.with my pension bank..a set amount towards a holiday..and another i stash the odd spare $$ into that account and it is all on my phone..i have used the Cents pay scheme for a Speeding Fine... payment by Drip feed..i also Borrowed against my pension to pay an Extremely big Veterinary account. They the Centa payed the bill and took out a set amount every pension day..till what i borrowed was paid back then my pension reverted to my full Pension.. but My Hand Doesn't Shake on Pension Day. Because i worked past retirement age...
Casper.

What has this do with you how many years did I work. You have to be living in LA LA land .To think$120.00 a week can be divided into payments for this and that. FYI worked sixty years, before Super and a marriage that cleaned me out

 

[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.

It's optional for a helping hand so if you don't like it don't apply for it

 

[Koda]

I think this is a good idea for those who cannot manage their money keeps the power on and a roof over their head