In an effort to streamline Centrelink repayment methods and reduce administrative costs, Services Australia has introduced a new $5 minimum rule for repayments at Australia Post outlets.
Starting from June 12, 2025, all in-person repayments, including cash, cheque, credit card, and EFTPOS transactions, must meet the $5 minimum threshold.
What This Means for Centrelink Debtors
This new rule directly impacts those making small repayments at Australia Post locations. Any repayment amount below $5 will no longer be accepted at these counters.
Instead, individuals will be required to use alternative payment methods to settle smaller debts. These methods include:
- BPAY
- Direct Debit
- Post Billpay online services
Services Australia is encouraging users who frequently make small repayments to adopt these online options, which are often more efficient and less costly.
Alternative Payment Methods for Smaller Repayments
To avoid disruptions in repayment schedules, Centrelink recipients are urged to consider the following digital payment options for debts under $5:
- BPAY: A widely-used, secure method for making payments online directly from a bank account.
- Direct Debit: Allows for automatic payments to be deducted from the recipient’s bank account.
- Post Billpay: An online service that enables users to pay bills securely at any time, 24/7.
These alternatives provide convenience and ensure that recipients can continue meeting their Centrelink obligations without the need for physical visits to Australia Post.
Existing Payment Methods Still Available
While the $5 minimum rule applies to in-person payments at Australia Post, other methods remain unchanged. Recipients can still manage their debts using the following options:
- Full repayment by the due date
- Setting up a regular repayment plan
- Authorising deductions from ongoing Centrelink payments
For many, these options provide a more flexible approach to managing their financial obligations.
Cheques Still Accepted, But Slower
Although cheques are still accepted for Centrelink repayments, Services Australia advises that they can take up to two weeks longer than direct bank deposits. To avoid delays, the agency strongly recommends direct transfers for faster access to funds.
Recent Changes to Payment Methods
This $5 minimum rule follows a previous change in December 2024, which ended the acceptance of foreign currency cheques and money orders for debt repayments.
This change is part of a broader effort to simplify payment processing and improve payment reliability for all Australians.
No Interest on Repayments
Services Australia has confirmed that repayment arrangements will not incur interest as long as the conditions are met. To avoid penalties, recipients must:
- Make the first repayment by the due date.
- Maintain the agreed repayment schedule.
This arrangement helps Centrelink recipients manage their debts without accumulating additional charges.
Financial Support for Hardship Cases
For those experiencing financial hardship, Services Australia offers various support programs to help recipients meet their repayment obligations.
There is also a dedicated debt recovery line to provide flexible repayment options for those in difficult circumstances. Recipients affected by natural disasters may also request to pause or adjust their repayment schedules.
Credit Card Payments and Fees
While credit cards can still be used for Centrelink repayments, users should be aware of potential interest or cash advance fees imposed by their financial institutions.
Services Australia does not charge these fees, but recipients should consider the cost implications before using credit cards.
Online Management Through myGov
For those who prefer digital solutions, myGov continues to be a highly flexible and secure platform for managing Centrelink payments. Users linked to their myGov accounts can:
- Review payment details.
- Update repayment plans.
- Make payments online.
This digital platform makes it easier for Australians to stay on top of their Centrelink obligations without the need for in-person visits.
Centrelink Payment Increase Not Affected
The introduction of the $5 minimum rule does not affect the ongoing Centrelink payment increases.
Recipients will continue receiving their entitlements as per the existing schedules. The $5 rule strictly applies to repayments made at Australia Post outlets.
Encouraging Early Transition to Digital Payments
Services Australia is encouraging all Centrelink recipients to transition to digital repayment methods before June 12, 2025.
Early adoption of these methods will help ensure smoother processing and avoid delays in repayments.
The new $5 minimum rule for Centrelink repayments starting June 12, 2025, encourages Australians to adopt more efficient, digital payment methods, reducing delays and administrative costs. Recipients are urged to review and transition to digital options for a seamless repayment experience.
FAQs
What happens if my Centrelink debt is less than $5?
From June 12, 2025, you will need to use BPAY, direct debit, or Post Billpay to make repayments under $5.
Can I still make payments by cheque?
Yes, cheques are still accepted but may take up to two weeks longer than direct deposits.
Will my credit card charges additional fees?
If you choose to repay via credit card, your bank may charge interest or cash advance fees.