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.

For more information, visit: servicesaustralia.gov.au/centrepayreform

Quotes from the Hon. Bill Shorten MP, Minister for Government Services:

“At its best, Centrepay helps people manage their money more effectively. We heard repeatedly from people who said Centrepay is a convenient service that helps them keep on top of housing costs, bills, school fees and medication costs.”

“But it’s clear from the extensive feedback we’ve received that changes were needed to ensure Centrepay wasn’t undermined by predatory behaviour.”

“Predatory behaviour is unacceptable. The improvements we’ve announced today will ensure there are safeguards in place to reduce the risk of financial harm, and we’ll continue to work with regulators and across government to stamp out this behaviour.”

“Consultation with the community and experts has been critical at every step, and I want to thank every individual and organisation who worked with us. These contributions have been invaluable, and the outcomes are a testament to what genuine consultation between government, advocates, and the community, can look like.”

Quotes from Bettina Cooper, Financial Counselling and Strategy Lead, Mob Strong Debt Help:

“The Centrepay reform team’s engagement with First Nations and other consumer advocates has been a true consultation. All government departments can learn from their open and collaborative approach to achieve fair outcomes.”

“Services Australia’s Centrepay reform team is a template for how government departments can do effective consultation with consumer groups, especially First Nations advocates to improve outcomes for vulnerable consumers.”

“Minister Shorten’s backing of consumer advocates and confidence in the evidence we shared, as well as the new CEO of Services Australia David Hazelhurst’s support, have been integral to the Centrepay reforms being announced today.”

Quotes from Julia Davis, Senior Policy and Communications Officer, Financial Rights:

“Centrepay is an invaluable service for social security recipients, but consumer advocates have been raising concerns about its misuse for decades. We applaud Minister Shorten for his willingness to take up the bat for people who have been let down by successive governments which failed to act on the reported misuse of Centrepay.”

“Unfortunately, financial counsellors and consumer advocates have seen many examples of Centrepay being used as a vehicle for exploitation and financial abuse of vulnerable Australians. We commend the government’s reforms and believe these changes will go a long way to supporting the financial resilience of social security recipients.”

Quotes from Dr Cassandra Goldie AO, CEO, Australian Council of Social Service:

"ACOSS warmly welcomes the government's announcement to reform Centrepay to protect people from exploitation. We commend the government for its genuine engagement with advocates over the past 12 months that has led to this outcome. We look forward to seeing these reforms come into fruition and ensure that people receiving income support can trust that Centrepay won't be used against them."