Centrelink recipients will soon experience a change when making in-person repayments.
Beginning 12 June 2025, Services Australia is implementing a $5 minimum limit for over-the-counter debt repayments at Australia Post outlets.
This adjustment will apply to payments made via cash, cheque, credit card, or EFTPOS at post offices nationwide.
Alternative Methods for Repayments Below $5
If a repayment amount is under $5, individuals must opt for alternative payment channels. Accepted methods include BPAY, direct debit, and Post Billpay via online services.
Services Australia recommends that users making frequent small repayments transition to these digital options. This move is part of a wider strategy to enhance efficiency and reduce the handling of low-value transactions.
Existing Repayment Options Remain Available
Recipients of Centrelink payments still have access to traditional repayment methods. Individuals can choose to repay debts in lump sums or through customised repayment plans.
Additionally, payment deductions from ongoing Centrelink benefits are supported. Users can manage their repayments conveniently through their linked myGov accounts by selecting the “Money you owe” option.
Cheques Continue to Be Accepted
For now, Services Australia will continue accepting cheques for repayments. However, recipients should be aware that cheque processing can take up to two weeks longer than direct deposits.
The agency encourages users to opt for direct bank transfers for quicker access to their funds.
Previous Changes to Payment Methods
The newly introduced $5 minimum rule builds upon a policy change implemented in December 2024.
Since that update, foreign currency cheques and money orders are no longer accepted for Centrelink debt repayments. The goal of these changes is to simplify the payment process and enhance overall reliability.
Flexible Repayment Choices Still Available
Australians repaying Centrelink debts continue to have three primary options:
| Repayment Option | Description |
|---|---|
| Full Repayment | Pay the debt in full by the due date. |
| Regular Repayment Plan | Set up a scheduled repayment arrangement. |
| Deductions from Benefits | Authorise automatic deductions from ongoing Centrelink payments. |
Each option allows individuals to manage repayments based on their personal financial circumstances.
Interest-Free Arrangements
Services Australia assures recipients that interest is not charged on repayment arrangements if conditions are adhered to.
To remain eligible, individuals must make their first payment by the due date and follow the agreed terms. This approach is designed to support compliance without adding financial burdens.
Financial Assistance and Support
Recipients experiencing financial hardship can seek help from Services Australia. A dedicated debt recovery line is available for those needing more flexible repayment solutions.
Additionally, individuals impacted by natural disasters can request to pause or adjust their repayment schedules.
No Impact on Credit Ratings
Unpaid Centrelink debts will not negatively affect an individual’s personal credit rating.
However, if no repayments commence by the due date, recovery actions may be initiated. This can include tax refund offsets or collections through other government agencies.
Potential Fees on Credit Card Payments
While Services Australia does not impose additional fees on credit card repayments, individuals should be cautious.
Banks and financial institutions may apply interest charges or cash advance fees. It is advisable to review these potential costs before using a credit card for repayments.
Encouraging a Review of Payment Options
Services Australia encourages all Centrelink recipients to regularly review their repayment methods. Important factors to consider include:
- Personal budget constraints
- Presence of other debts
- Preferred repayment timeline
The agency provides practical examples to help recipients choose the option that best suits their needs.
Online Repayment Management Through myGov
Managing Centrelink debts online through a myGov account remains the most flexible and secure option. Linked users can:
- View payment details
- Update repayment plans
- Make repayments online
This platform offers convenient access for Australians seeking to manage their Centrelink obligations efficiently.
No Impact on Centrelink Payment Increases
The introduction of the $5 minimum rule will not affect scheduled increases to ongoing Centrelink payments.
Recipients will continue to receive their entitlements as per current rates. The new rule applies solely to debt repayments made at post office counters.
Preparing for the Change
Services Australia is urging all Centrelink debtors to comply with the new minimum payment rule starting from 12 June 2025.
The agency’s aim is to promote smoother processing and reduce administrative delays. Those affected are encouraged to transition early to digital payment methods where possible.
With the introduction of the $5 minimum repayment rule, Centrelink continues its push toward modernising and streamlining payment processes.
Australians managing Centrelink debts are strongly encouraged to review their options and consider using online or automated methods for greater efficiency and convenience. For further guidance, visit the official Services Australia repayment guide.
FAQs
Does the new $5 minimum rule apply to all Centrelink payments?
No, this rule only applies to debt repayments made at Australia Post outlets. It does not impact ongoing Centrelink benefits or their increase schedules.
What happens if I need to repay less than $5?
For repayments under $5, you will need to use alternatives like BPAY, direct debit, or Post Billpay online.
Will my credit score be affected if I miss a repayment?
No, unpaid Centrelink debts do not directly impact your credit rating. However, if repayments are not initiated by the due date, recovery actions such as tax refund offsets may occur.