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.

 

[BigAl6164]

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?

Centrepay is useful for some things, such as paying a Centrelink advance, or other loans. Everything else, as you say, is handled via my bank app, coinciding with "pay" day. Easy-as.

 

[BigAl6164]

We all know how well?? Labour manage money.

As the figures indicate - much better than the Libs. The Liberal Party has been dining out on their self-created myth of being the "better money managers" for decades. The fact is, Liberal Govts are higher taxing and the ones who gave Australia a $trillion debt under the Abbott Turnbull Morrison muppetment. Labor rescued Australia from the GFC and the best Treasurers have been Labor Treasurers. Oh yes, we know who the better managers are - for sure!

 

[Willowis147]

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

 

[Willowis147]

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.

 

[Willowis147]

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..

 

[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

Why are a lot on here on abou

 

[Larcol]

I also D/D but I find a lot of the companies' now put on their accounts a 'on or about' date'. So if pension date is on e.g. 5th of the month the company will claim on the 4th which there is not enough to pay, so the Bank rejects the payment and fines you $10.

Just make sure you have sufficient funds in your account to cover you bills, it doesnt matter when they are due as they will let you know when payment should be made, you must keep enough to cover...always check you bank balance and deposit or transfer when necessary.

 

[Willowis147]

Why are so many of you saying it affects your daily limit ?? Change your banks .
My age pension goes into ANZ they take the various direct debits, it is done on Pension Day .. by the time i want to go to the supermarket..i put Petrol into my car..do all my shopping at various locations....it is all on .my phone
I pay other bills from my bank..they list it all in your account records.. internet & or phone banking..it records the payment details..so if i need to pay someone i can go back to those records and use that information to pay who ever what ever there & then, i always use my debit card it goes onto my phone banking...turn my phone on ..look up my banking it is all there for me to see..any time any day those records ..i have it done every fortnight and all that can be done







, post: 645306, member: 43356"]
Just make sure you have sufficient funds in your account to cover you bills, it doesn't matter when they are due as they will let you know when payment should be made, you must keep enough to cover...always check you bank balance and deposit or transfer when necessary.
[/QUOTE] no
I got all my Bills

Just make sure you have sufficient funds in your account to cover you bills, it doesnt matter when they are due as they will let you know when payment should be made, you must keep enough to cover...always check you bank balance and deposit or transfer when necessary.

 

[Willowis147]

Why are so many of you saying it affects your daily limit ?? Change your banks .
My age pension goes into ANZ they take the various direct debits, it is done on Pension Day .. by the time i want to go to the supermarket..i put Petrol into my car..do all my shopping at various locations....it is all on .my phone
I pay other bills from my bank..they list it all in your account records.. internet & or phone banking..it records the payment details..so if i need to pay someone i can go back to those records and use that information to pay who ever what ever there & then, i always use my debit card it goes onto my phone banking...turn my phone on ..look up my banking it is all there for me to see..any time any day those records ..i have it done every fortnight and all those that can be done every fortnight...i have Health benifits.and all other bills made to be payed on my pension day...ANZ also transfer some $$$$ i onto another banking institution who manage my Quarterly payments...then there is enough to cover those..my health insurance..Bupa insistence of doing 2 days after the day i nominate...i Fixed them..i changed to a different health insurance so that by the time Pension Day i am ready to go to the supermarket..i pick up my phone go into my ANZ account and Yes all done and i know Precisely what is in my accounts..
It is not hard...i do not even get in my car to do Banking ...ANZ ..i do it all on my phone..and i am an OBE..over bloody eighty.







, post: 645306, member: 43356"]
Just make sure you have sufficient funds in your account to cover you bills, it doesn't matter when they are due as they will let you know when payment should be made, you must keep enough to cover...always check you bank balance and deposit or transfer when necessary.

no
I got all my Bills
[/QUOTE]

 

[Beams]

I also D/D but I find a lot of the companies' now put on their accounts a 'on or about' date'. So if pension date is on e.g. 5th of the month the company will claim on the 4th which there is not enough to pay, so the Bank rejects the payment and fines you $10.

Change your bank.

 

[Beams]

I resent being called a "customer". I'm a shareholder! An employer.

Aye! Aye! Ma'am. Noted in red!