Centrepay 103-09000000
Expand allCustomer FAQs
Deductions
Table 1
Item | Description |
Why can’t I start a deduction to a business I have previously used Centrepay for? | The changes will impact Centrepay customers with existing deductions in circumstances where a business is no longer eligible to offer Centrepay. From 3 November 2025, some service reasons will be removed. New deductions for these service reasons will not be available from this date. Customers can still make purchases from these businesses using alternative payment arrangements. Existing deductions for these service reasons will remain in place until 31 October 2026. Deductions cancelled after 3 November 2025 will not be able to be restarted. The business’s approval to use Centrepay will end from 1 November 2026, unless the business is approved for another service reason that remains approved for Centrepay. Service reasons being removed include:
Example 1: A customer wants to start a deduction for Household Goods Lease and Rental to purchase a fridge. The customer purchased a washing machine in January 2025 from the same business. The business advises the customer they cannot commence a new deduction as they can no longer use Centrepay to purchase a fridge after 3 November 2025. The customer will need to consider alternative payment arrangements with the business to purchase or lease the fridge. They may be able to access No Interest Loans. Example 2: A customer has an ongoing $150 per fortnight Centrepay deduction in place for clothing at a business approved for ‘Basic Household Items’. The customer cancels this deduction in January 2026. The customer requests the business to restart the deduction. The business advises the customer they can no longer use Centrepay to pay for clothing. The customer will need to consider alternative payment arrangements with the business to purchase the clothing. |
What will happen to my deductions if the service reason is being removed from Centrepay? | If you have an existing deduction to a service reason that will be removed from Centrepay, your deduction can continue until 31 October 2026. If your deduction is expected to continue past 31 October 2026, you will need to choose a different payment method from 1 November 2026. Talk to the business about alternate payment arrangements. If you cancel your deduction after 3 November 2025, you will not be able to restart the deduction or start a new deduction to the business for this service reason. If you would like more information about getting financial help and information go to Getting financial help and information - Managing your money - Services Australia. |
How will I know if I can continue to use Centrepay for Food Provision service reason? | The Food Provision service reason has been renamed Food provision for remote areas. All current Food Provision (FPR) community and grocery store businesses in remote and very remote locations will remain eligible to offer Centrepay. Stores in urban and regional areas and butchers in all locations are no longer eligible to offer Centrepay for the Food provision for remote areas service reason from 1 November 2026. Deductions set up before 3 November 2025 must have a target amount added by 4 May 2026. If a deduction starts after 3 November 2025, it must include a target amount. A list of stores remaining on Food Provision for remote areas can be found here. |
A business has changed my deductions, and I don’t approve, what do I do? | Your consent is required before a deduction is started or increased. You can give the business consent to update your deductions using the new Deduction Authority form. The following examples describe when a business may end a deduction. The business should tell the customer of any changes they are making to a deduction. Example 1: A customer has a deduction repaying $50 for a whitegoods purchase. The customer notices this deduction has stopped. The business has stopped the deduction because the balance of the whitegoods has been paid, and the customer is accruing credit with the business through the recurring deductions. The business should talk with the customer before making changes to the deduction. Because the deduction was for a service reason that is no longer eligible for Centrepay this deduction cannot be restarted. Example 2: A customer notices their Centrepay deduction has not been paid from their Centrelink payment. They contact the business who informs them the deduction was stopped because the credit balance has reached $1,000. The customer has not purchased goods from the store for 3 months and the balance accrued is too high and has not been used. The customer can use the credit to purchase goods or request a credit from the business. Example 3: A customer has a recurring utilities deduction for $100. The credit they have with the business is for $1,500. The utility provider has cancelled the customer’s deduction and contacted the customer to arrange for their credit to be refunded. The customer has requested for the provider to keep the credit for future bills, so they are ahead of their repayments. If you have feedback or concerns, you can contact us on our Feedback and Complaints line or access https://www.servicesaustralia.gov.au/centrepay-complaints-and-feedback. |
Additional conditions
Table 2
Item | Description |
What is a mandatory target amount? | A target amount is the maximum amount the customer will pay through their deduction. For some service reasons the inclusion of a target amount is mandatory, and a deduction cannot commence without one. Once the total deduction amount has reached the target amount, the deduction will automatically cancel. A target amount cannot be more than the target amount cap, as set out by the Centrepay: Terms of Use. Once the target amount is met through regular deductions, the deductions will end. |
I want to add a mandatory target to an existing deduction, but my business is being removed in November 2026. | Because your business has been restricted from starting new deductions and increasing target amounts you are unable to make these updates yourself. If, at the customer's request, a target amount is to be applied to an existing deduction this action can be completed by National Business Gateway (NBG). NBG must get this request in writing and upload a copy to the business record upon completion of the target amount coding. |
How do I change my target amount? | You can change your target amount at any time. Some service reasons have a maximum target amount you cannot exceed. For example, the No interest loans target amount must not be more than the estimated total amount payable in respect of the loan (including interest, charges and costs). You can add a target amount to new deductions or existing deductions. Example: A customer has an existing deduction for food for $100 per fortnight with a target amount of $400. More children come into the customer’s care and they want to increase this deduction amount to $200 per fortnight with a target amount of $600. The customer can update their deduction to include the new target amount. Once deductions to the target of $600 dollars has been met, the deduction will end. |
What is a mandatory end date? | An end date is the last date that a deduction will occur. Once a deduction reaches its end date it will automatically cancel. There are some additional rules around end dates. For example, an end date not being later than 6 months after the start date of the deduction. See Service reasons for further information. Example: A customer wants to start a deduction for child care. When starting this deduction, an end date is required. The customer decides to put an end date that aligns with the end of the school year for their child, and they will no longer be in care after this date. |
How can I add or change an end date to my deduction? | A Centrepay deduction may be changed to include an end date using your online account, the MyGov or Express Plus mobile app, phone self service or by calling a smart centre or visiting a service centre. |
Business FAQs
New business
Table 3
Item | Description |
What additional items are excluded from Centrepay? | Since Centrepay reform, customers cannot access Centrepay deductions for goods and services like tobacco, alcohol or life insurance. This list has been expanded to include:
|
How do I apply to use Centrepay? | Businesses should be directed to: How to apply for Centrepay for Businesses - Centrepay for businesses - Services Australia |
How does Services Australia determine remote and very remote for Food Provision for Remote areas service reason? | A ‘remote’ or ‘very remote’ location is defined by Services Australia using the ARIA+ map and confirming the population of the location using the Australian Bureau of Statistics – Statistical Area Level 2 (SA2) data. See Food Provision for remote areas stores for businesses currently approved for Food Provisions, who will remain on Centrepay when the changes take effect. |
Deduction Authorities
Table 4
Item | Description |
How do I get customer consent? | Business must get customer consent when starting or increasing a deduction, extending an end date or increasing a target amount. Businesses can get customer consent via the:
|
I’m a Community Housing Organisation, can I continue to use the Multiple Consent form to increase rental deductions? | If a customer signed a multiple consent form (prior to 3 November 2025), a business can continue to administer increases using this authority during the transition period (until 3 November 2026) or until the new process has been released by Services Australia. During this transition period, increases to deduction amounts above the CPI calculation, set out in 11.1 (b) of the Centrepay Terms of Use, can be applied as long as they comply with the businesses state or territory regulatory guidelines. If a customer has started a deduction post 3 November 2025, or have not previously provided this consent, customers are required to lodge a new Centrepay Deduction Authority to increase their deduction amount in line with clauses 8.2 and 8.3 of the Centrepay Terms of Use. |
I’m a Community Housing Organisation. Can I request approval to use Multiple Consent? | No, multiple consent cannot be used for any new customers from 3 November 2025. Until a new process is released by Services Australia, customers who have not previously signed a multiple consent form must complete a new Centrepay Deduction Authority (SA501) form for any increases to their deduction amount. |
Can I still use a verbal deduction authority? | The verbal deduction authority is now referred to as an oral deduction authority, see section 8.3 of the Centrepay: Terms of Use. Businesses wishing to collect consent using an oral deduction authority must request approval by emailing the Centrepay Business Support mailbox. The business will be provided with a set of questions they need to answer, demonstrating how they will meet the requirements and obligations detailed in the Centrepay: Terms of Use. |
How do I apply to use the oral deduction authority? | Businesses can apply to use the oral deduction authority by emailing the Centrelink Business Support mailbox. |
My business is unable to meet the oral deduction authority criteria what can I do? | If a business is unable to meet the criteria detailed in the Centrepay: Terms of Use, they will not be approved to use oral deduction authority. However, businesses will still have access to the Centrepay deduction authority form (SA501). You can always re-apply to use the oral deduction authority if your circumstances change and you will be able to meet the criteria. Services Australia are open to working with the businesses on any restrictions they may have. |
Can I use my existing verbal deduction script wording? | No, upon application and approval to use the oral deduction authority businesses will be provided with a mandatory oral deduction authority script which is, consistent with the Centrepay deduction authority form (SA501). |
Do I have to have a process in place to capture deduction authorities orally to be eligible for Centrepay? | Businesses are not required to accept deduction authorities orally to be eligible for Centrepay. If a business wishes to assist customers in setting up Centrepay deductions, they must obtain customer consent via the mandatory Centrepay deduction authority form (SA501). |
Additional conditions
Table 5
Item | Description |
What is a mandatory target amount? | A target amount is the maximum amount the customer will pay through their deduction. For some service reasons the inclusion of a target amount is mandatory, and a deduction cannot commence without one. Once the total deduction amount has reached the target amount, the deduction will automatically cancel. Many of these service reasons have additional target amount rules, including target amount caps. A target amount cannot be more than the target amount cap, as set out by the Centrepay: Terms of Use. Once the target amount is met through regular deductions, the deductions will end. |
A service reason now requires a target amount; how do I assist my customers to determine the target amount? | Businesses should discuss with their customers what a reasonable target amount is for them. Businesses need to consider the deduction amount that a customer can afford when talking to them and consider how long a customer will be paying to reach the target amount. The different service reasons also have specific target amount rules that apply to them, including target amount caps. A target amount cannot be more than the target amount cap, as set out by the Centrepay: Terms of Use. |
A customer is requesting to make additional purchases using Centrepay that will exceed their target amount, what do I tell them? | A customer can choose to increase a target amount, as long as the target amount is not above the target amount cap. A customer can give the business consent through a mandatory Deduction Authority form (SA501) or an oral deduction authority (if the business is approved to accept these) to increase their target amount. Customers can change their target amount at any time via online services, myGov, Express Plus app, via the smart centre, service centre or by providing authority to the business to action. A customer can purchase goods or use services from a business at any time and pay via an alternative payment method, should they not be able to increase their target amount. |
A mandatory end date is required for a service reason; how do I determine when this is? | There are different rules for different service reasons. The Centrepay: Terms of Use provides the specific rules applied to the different service reasons. As an example, the end date for the Child care services service reason can be no later than the end of the calendar year in which the deduction authority commenced. For the Disability and community services service reason, the end date must be no later than 6 months after the start date of the deduction authority. The Service Reasons table provides details on the mandatory conditions applied to each service reason. |
Overpayments
Table 6
Deductions
Table 7
Item | Description |
How do I contact Services Australia? | Contact the Centrepay Business Support team by phone or email. |
Service reasons with mandatory conditions
Table 8
Customer correspondence
Customers will receive a letter when a deduction has been set up, changed or cancelled. In addition to the letter, some customers will also receive an SMS.
SMS messages will be sent when a Centrepay deduction is set up, changed, cancelled, suspended (and resumed) by either the Centrepay Business or the agency. SMS messages are not sent where the customer has managed their deduction through their online channel/s.
To encourage customers to manage their deductions they will also receive an SMS notification when a:
- deduction has been in place, unchanged for 12 months
- second deduction has been commenced for the same service reason (for example, 2 deductions for electricity)
- target amount or end date is reached
- partial or a nil Centrepay payment has been made
SMS messages will promote online services as the preferred method to manage their deductions.
To be eligible to receive Centrepay SMS messaging a customer must:
- be subscribed to Electronic Messages, and
- not have a nominee arrangement
For customer letters and electronic messaging, see Centrelink letters online and Electronic Messaging.
Food Provision for remote areas stores
Table 9: list of stores remaining on FPR for remote areas.