From November 3, 2025, Centrelink’s Centrepay service will undergo significant changes, removing a number of services that have long been available to welfare recipients. This overhaul follows a review aimed at streamlining the service to better align with its core purpose.
Centrepay has been a useful tool for many Centrelink recipients, allowing them to pay for essential services like rent and utilities directly from their payments. However, the upcoming changes will see several services removed, leaving individuals with fewer options for automatic bill payments through the system. These changes are set to have widespread effects on users, particularly those relying on the service for household items, funeral expenses, and motor vehicle registration.
What’s Being Removed?
One of the most notable adjustments is the removal of funeral expenses from Centrepay. According to Services Australia, funeral-related costs have been deemed out of alignment with the service’s primary focus. This includes deductions for funeral plans, prepaid funerals, and actual funeral expenses. Furthermore, social and recreational commitments like sporting or musical activities, as well as charitable donations, will also be cut from the system. These services, while useful for some, have seen limited usage, leading to their exclusion.
Other key removals include household items like furniture, clothing, and whitegoods. This could have a significant impact on recipients who have relied on Centrepay for these types of purchases. In a similar vein, car registration and employment expenses will no longer be supported through the service, disrupting users who have used Centrepay for vehicle-related costs or work-related purchases like uniforms and training.
Adjustments to Other Services
While some services are being completely removed, others are undergoing adjustments. For example, Centrepay will still support utilities payments, such as for electricity, water, and telecommunications, without major changes. However, any existing deductions for services like food and groceries will be restricted to remote communities only, according to Services Australia.
In addition, new rules will require target amounts to be set for deductions in categories such as childcare, education, and medical services, ensuring that recipients are only paying what is necessary for these essential services.
These shifts reflect a broader trend to refine the Centrepay system, making it more streamlined and focused on basic living costs. It is designed to help users better manage their finances by deducting a set portion of their Centrelink payments before they reach their bank accounts, ensuring essential bills are paid on time.
As the 3 November deadline approaches, Centrepay users are urged to review their existing arrangements. According to Services Australia, those who no longer wish to use Centrepay or need to opt-out of the new terms should do so before 31 October 2025. With many of the changes affecting essential services, it’s crucial that users understand how these updates will impact their financial management.
