If you’re receiving a Centrelink payment and owe a debt, a new rule could affect how you make repayments. Starting June 12, 2025, Services Australia will enforce a minimum repayment amount of $5 for all over-the-counter transactions made at Australia Post outlets.
This change applies to those repaying Centrelink debts in person using cash, EFTPOS, cheque, or credit card.
“From 12 June 2025, the minimum amount you can repay to us at Australia Post will increase to $5,” Services Australia stated.
“You’ll only be able to make a debt repayment over the counter at Australia Post if the amount is $5 or more.”
What This Means for Centrelink Payment Recipients?
If you regularly make small repayments at your local post office, you may now need to rethink your payment method. The new rule only affects in-person payments, so if your usual repayment amount is under $5, you’ll have to use an alternative method or increase your repayment value.
Easier Alternatives for Managing Your Centrelink Payment Debt
The good news is, this rule does not affect other repayment methods. You can still pay any amount through:
- Direct debit
- BPAY
- Australia Post’s online Post Billpay
These options are especially helpful if you prefer to manage your Centrelink payment debt in smaller, frequent amounts without needing to visit a physical location.
Be Cautious with Credit Cards
If you choose to repay debts using a credit card, make sure you understand any fees your bank may charge, such as interest or cash advance charges. These are imposed by your financial institution, not Services Australia.
Reminder: Foreign Currency Cheques No Longer Accepted
This update follows a December 2024 change when Services Australia stopped accepting foreign currency cheques and money orders for debt repayments. However, Centrelink payments by cheque are still available, though they may arrive up to two weeks later than direct deposit payments.
Repayment Plans Are Still Available
Whether you owe a small or large amount, Services Australia allows flexibility in how you repay your Centrelink payment debt:
- Pay in full at once
- Set up an installment plan
- Opt for automatic deductions from your Centrelink payment
These options can help you stay on top of your debt without extra stress.
Managing Your Centrelink Payment Debt Going Forward
As of June 12, if you’re repaying a Centrelink payment debt at Australia Post, ensure the amount is $5 or more. For more flexible and smaller payments, consider setting up BPAY, direct debit, or paying online.
Staying informed about these changes will help you manage your Centrelink payment obligations without interruption. For assistance, head to the official Services Australia website.
