Centrelink Announces Major Centrepay Changes Starting November 2025

Services Australia has announced major changes to the Centrepay system. These changes will take effect on November 3. The updates will remove several common payment categories from the direct deduction service. This decision aims to refocus Centrepay on essential utilities and housing costs.

The agency conducted a review of the system. According to Reuters, the goal is to ensure Centrepay funds are used for its core purpose. The program is designed to help people budget for their most critical bills.

Which Services Are Being Removed from Centrepay?

A significant list of goods and services will no longer be eligible. Starting November 3, Centrepay cannot be used for funeral expenses. It also cannot be used for general food and grocery purchases.

Some exceptions will remain for remote communities. Other removed categories include car registration and social club fees. Household goods rentals and employment-related expenses are also being cut.

The changes extend to butchers, self-storage, and fuel. Even accounting services will be removed from the system. This shift will impact many recipients’ budgeting habits.

How the Centrepay Changes Will Affect Users

Centrepay is a voluntary service for Centrelink customers. It allows money to be sent directly to approved businesses. This happens before the payment lands in the user’s bank account.

The system has been popular for managing regular bills. The upcoming changes will narrow its focus significantly. Only core services like rent and utilities will remain eligible.

Deductions for the removed services will not stop immediately. Existing arrangements can continue until November 1 of next year. However, all new deductions after November 3 must follow the new rules.

Businesses in the program must agree to new terms. Recipients who wish to cancel a Centrepay agreement should act soon. They are advised to contact Services Australia before October 31.

The upcoming Centrepay changes represent a significant shift in how welfare recipients can manage their funds. These Centrepay adjustments are designed to refocus the system on absolute necessities, ensuring the direct deduction service supports long-term financial stability for vulnerable Australians.

Thought you’d like to know

What is Centrepay used for?

Centrepay is a free direct bill-paying service. It lets Centrelink customers pay bills from their payment before they get it. This helps people budget for important regular expenses.

Can I still pay my rent with Centrepay?

Yes, rent payments are not affected by these changes. Payments for utilities like electricity, gas, and water will also remain eligible. These are considered essential housing costs.

What happens to my existing deductions for removed services?

Your current deductions can continue until November 1 next year. This gives you a full year to find alternative payment methods. After that date, all deductions must be for the new, narrower list of services.

Why are these Centrepay changes happening?

Services Australia states the changes will refocus the system on its original purpose. The goal is to support payments for essential goods and services. This protects vulnerable people from potential financial exploitation.

How do I cancel a Centrepay deduction?

You can cancel a deduction through your Centrelink online account. You can also call Services Australia directly. It is best to do this before the new rules start on November 3.