Centrepay is a free, voluntary service from Services Australia, designed to help Centrelink recipients manage essential expenses.
By setting up automatic deductions for services like rent, utilities, and insurance, Centrepay provides a simple way to keep essential bills paid directly from Centrelink benefits. Here’s a guide to setting up and making the most of Centrepay in 2024.
What Is Centrepay?
Centrepay enables Centrelink recipients to have a portion of their benefits automatically deducted to pay registered businesses for essential goods and services.
It’s a powerful tool for managing finances, ensuring essential bills are covered before the remaining payment is issued.
Key Features
| Feature | Details |
|---|---|
| Service | Free, voluntary bill payment service for Centrelink recipients |
| Minimum Deduction | $10 per fortnight |
| Eligible Services | Rent, utilities, insurance, educational fees, and other approved essential services |
| Setup Methods | Through myGov, Centrelink Express App, or by contacting the business directly |
| Eligible Payments | Most Centrelink payments, including Youth Allowance, Age Pension, and Disability Support Pension |
Setting Up Centrepay Deductions
You can arrange Centrepay deductions in several ways, making it easy to set up payments according to your needs.
1. Online via MyGov
If you have a myGov account linked to Centrelink, you can set up deductions directly online:
- Log in to myGov and access your linked Centrelink account.
- Navigate to the “Centrepay” section and select the business you wish to pay.
- Set the deduction amount (minimum $10) and frequency.
- Confirm the payment schedule and review details.
2. Centrelink Express App
Through the Centrelink Express Plus mobile app, you can manage deductions directly from your phone:
- Log into the app and select Centrepay deductions.
- Follow the prompts to set up, manage, or cancel deductions as needed.
3. In-Person or By Phone
If you prefer to set up Centrepay in person or by phone, you can visit a Services Australia office or call the Centrelink helpline. A representative can assist with all necessary details to establish your deduction schedule.
Required Information
When setting up Centrepay, you’ll need:
- Centrelink Customer Reference Number (CRN)
- Business details (name, address, phone, and account number)
- Deduction amount (minimum $10)
- Payment source (the specific Centrelink payment)
- Target amount or end date (optional, to stop deductions automatically once the balance is paid)
Managing Your Centrepay Deductions
Centrepay is designed to be flexible, allowing adjustments as your needs change.
Adjustments and Pauses
- Adjust Amount: You can increase or decrease the deduction amount anytime.
- Temporary Pauses: Pause payments for up to 13 weeks, ideal if you’re facing temporary changes, like a job transition. Pauses automatically restart after the period ends.
- Cancellation: You can cancel a deduction anytime. Just remember to arrange alternative payment methods to avoid missed payments.
What You Can Pay with Centrepay
Centrepay covers essential goods and services, primarily for bills that ensure household stability and basic needs.
| Eligible Expenses | Examples |
|---|---|
| Housing and Rent | Rent payments to landlords or property managers |
| Utilities | Gas, electricity, and water bills |
| Healthcare | Medical bills, dental services, and health insurance premiums |
| Educational Expenses | School fees, uniforms, and other education-related costs |
| Insurance | Home, contents, or car insurance premiums |
To use Centrepay, the business must be registered with Services Australia. If the business you wish to pay is not registered, you can request them to join the service.
Goods and Services Excluded from Centrepay
Certain expenses do not qualify for Centrepay, including:
- Child Care Subsidy
- Centrelink Advance Payments
- Specific supplements (e.g., Pension Supplement, Telephone Allowance)
Always check with Centrelink if you’re unsure whether a bill or service is eligible.
Benefits of Using Centrepay
Centrepay provides a structured approach to managing regular expenses, helping prevent debt and ensuring essential needs are prioritized.
Since it’s free, there are no transaction or service fees, and businesses cannot charge you additional costs for using the service. Moreover, it offers peace of mind by automating critical payments.
Using Centrepay effectively can simplify budgeting, especially for Centrelink recipients managing multiple bills and limited resources.
Centrepay is an invaluable resource for Centrelink recipients, allowing automated bill payments to manage essential expenses. By understanding the setup process, eligible expenses, and flexible options, you can maximize Centrepay’s benefits and maintain control over your finances.
