Centrelink Payment Update Coming Next Week – Set For An Increase

Starting June 12, 2025, Services Australia will implement a new minimum repayment threshold for Centrelink debt payments made in person at Australia Post locations.

Australians who choose this method of repayment will now need to ensure their payment amount is at least $5.

Updated In-Person Repayment Policy

If you owe money to Services Australia, you have several repayment options, including direct debit, BPAY, credit card, and in-person transactions at Australia Post outlets.

However, from June 12, only repayments of $5 or more will be accepted over the counter at Australia Post. This applies to all payment methods used in person, such as:

Cash
Cheque
Credit card
EFTPOS

No Changes to Other Payment Methods

There are no changes to the minimum repayment amounts for other payment channels, including:

Direct debit
BPAY
Post Billpay (online via Australia Post)

If you typically make smaller repayments, it might be more convenient to use one of these alternative options to avoid disruptions.

Credit Card Repayments May Incur Extra Costs

It’s important to note that using a credit card for Centrelink debt repayments can lead to additional charges. Many financial institutions may apply interest or cash advance fees, increasing your total repayment cost.

Foreign Currency Payments No Longer Accepted

As of December 19, Services Australia has ceased accepting foreign currency cheques and money orders as valid forms of repayment. This is part of ongoing efforts to streamline and modernize payment methods.

Cheque Payments Still Available for Recipients

Although foreign cheques are no longer accepted for repayment, Centrelink still sends out cheque payments to recipients when requested.

However, it’s important to understand that these cheque payments are typically delayed by about two weeks compared to direct deposit payments.

Flexible Debt Repayment Options Remain

Australians who owe money to Centrelink can choose to:

Pay in full
Establish a payment arrangement
Deduct amounts directly from regular Centrelink payments

These options help ensure repayment is manageable over time and suited to individual financial situations.

The introduction of a $5 minimum repayment limit for in-person transactions at Australia Post is part of Services Australia’s ongoing updates to make debt recovery more efficient.

While this change may impact those making small, frequent payments, alternative methods such as BPAY, direct debit, or online Post Billpay remain available with no minimum threshold.

Recipients should assess their repayment habits and consider switching to more flexible or cost-effective options to avoid inconvenience or additional fees.

FAQs

What is the new minimum repayment amount for Centrelink debts at Australia Post?

Starting June 12, 2025, the minimum repayment amount for in-person Centrelink debt payments at Australia Post is $5.

Are there any changes to online or automatic repayment methods?

No, direct debit, BPAY, and Post Billpay online do not have any new minimum repayment limits.

Can I still use cheques to pay my Centrelink debt?

You can use Australian currency cheques for in-person payments over $5, but foreign currency cheques and money orders are no longer accepted as of December 19.