The Australian Government is proposing a range of improvements to Centrepay, to ensure the free bill paying service helps Australians and reduces the risk of financial harm.
These improvements are the direct result of extensive consultation with customers, advocates and advisory groups, business, and across government.
Centrepay will be improved by:
- Removing high risk services, including consumer leases and household goods, to realign Centrepay as a regular bill-paying service that reduces financial risk.
- Improving safeguards for customers, including imposing mandatory target amounts and end dates for deductions across most services.
- Redesigning Centrepay policy and implementing a stronger compliance framework to hold businesses to account. This will include:
- A new application and approval process for businesses wanting to use the service, with contracts tailored to different services.
- Formalising obligations for businesses when managing complaints, including ensuring their complaint processes are accessible and help customers and advocates.
- Complaints and compliance specialists within Services Australia, who will help resolve Centrepay complaints and make sure businesses are accountable for how they use Centrepay.
These improvements will help ensure Centrepay is an effective budgeting tool, with safeguards in place to reduce the risk of financial harm.
They will also enable Services Australia to take action against businesses that do not meet their obligations.
These changes are significant, and we are determined to get it right. There will be a phased implementation, with a new Centrepay program expected to commence from 1 July 2025.
We'll continue working with customers and businesses in the lead-up, supporting them to transition to the new program. This will include further consultation with impacted businesses before the changes are finalised.
Services Australia has been working closely with advocates and advisory groups, and across government, throughout every step of the reform process, meeting regularly with stakeholders such as Anglicare, Mob Strong Debt Help, Financial Rights Legal Centre, the Australian Council of Social Services, and Economic Justice Australia.
These partnerships have been crucial, and the resulting insights have had a significant impact on the reforms.
Services Australia has also conducted community consultation activities across Australia, including in remote areas, to hear firsthand how Centrepay can support and empower those who use it.
The government released the Centrepay Reform Discussion Paper in May and invited the public to share their views and experiences with the bill paying service. A summary of the community response was made available in October.
Feedback at every step of this process has revealed many members of the community value Centrepay as a convenient service that helps them keep on top of important expenses. However, it was also clear these benefits were at risk of being undermined by predatory business practices and inadequate safeguards.
Today's announcement does not mark the end of consultation regarding the future of Centrepay. Services Australia will continue to work with customers, advocates, business, and across the wider community, to help prepare for these changes and support the transition.
