Starting, changing or cancelling a Centrepay deduction at the request of a business 103-09010080

A business can start a new deduction by using Centrelink Business Online Services (CBOS). It will need customer authorisation and the required access levels. This is the preferred method.

A business may change a current Centrepay deduction by using Centrelink Business Online Services (CBOS). The business will need customer authorisation to increase the deduction or target amount and the required access levels. This is the preferred method.

A business cannot use CBOS to suspend a deduction or change a deduction that is currently suspended. A business submits these requests by calling the National Business Gateway (NBG) Centrepay helpdesk, provided the change is not for an increase.

A business may request a Centrepay deduction be cancelled at any time. This can be done without customer authorisation by using Centrelink Business Online Services (CBOS). This is the preferred method.

A business must request a Centrepay deduction be cancelled within 3 business days of becoming aware a customer is no longer receiving any goods or services provided by the business.

A customer may be put into hardship if a Centrepay deduction is not cancelled when requested. Service Officers should use their discretion to prevent hardship or overpayments.

Centrepay deductions can only be made from an eligible Centrelink administered payment.

There are also deduction rules and limitations that mean a request cannot be processed.

If a Service Officer is having difficulties coding a Centrepay deduction request, the National Business Gateway - Centrepay helpdesk can be contacted to assist with identifying the issue. The Centrepay helpdesk will identify and advise the Service Officer of a workaround, or, if the issue is to be referred to ICT for investigation.

A customer must be referred back to the relevant State/Territory government housing authority if they wish to start a new, or vary a current deduction for government housing. See Commencing a Rent Deduction Scheme (RDS) deduction or Varying a Rent Deduction Scheme (RDS) deduction.

Cancellation requests can be actioned by Service Officers in Smart Centres or service centres by manual processing via the Payment Instruction Deduction Detail (PIDD) screen. State/territory government housing deductions cannot be cancelled by the Centrepay guided procedure. See Terminating a Rent Deduction Scheme (RDS) deduction.

Most businesses can start, change, or cancel a Centrepay deduction electronically by using the following services within Centrelink Business Online Services (CBOS):

• Deductions and Payments Application (DAPA)
• With the appropriate customer deduction authority, DAPA enables approved Centrepay businesses to add, change or cancel Centrepay deductions one at a time
• DAPA also allows a Centrepay business to view current and future Centrepay deductions, as well as a recent history of payments made on behalf of Centrepay customers
• Deductions Bulk Upload Service (DBUS)
• With the appropriate customer deduction authority, DBUS enables approved Centrepay businesses to submit a bulk file of multiple customer requests, to add, change or cancel Centrepay deductions. The DBUS file is submitted via the Organisational Online Mail (OOM) System, the same portal through which deduction reports are delivered. The submitted file must meet specifications to pass validation checks before the changes are applied to the customer record
• For a business to use CBOS to manage customer Centrepay deductions, the business must have the correct DAPA or CBUS roles applied in the Registration and Access Management for Business (RAMB) application

A deduction authority is the consent and instructions from a customer or the customer's representative.

Customer consent is required before a Centrepay deduction can be started or increased. A deduction authority can be captured in writing, verbally, or online. All deduction authorities must include the minimum requirements as specified in the Centrepay Procedural Guide for Businesses. See Resources for a link to the Centrepay Procedural Guide for Businesses.

On receipt of a deduction authority, the Centrepay business must process the deduction within 3 business days of receiving consent from a customer.

Centrepay businesses must keep a copy of a customer’s deduction authority for a period of 2 years after the deduction has ceased. It must be securely stored in a manner that can be audited by Services Australia, if required.