Billing at Source and Billing in Arrears for Centrepay businesses 103-09020030

Most Centrepay businesses are charged a transaction fee. As per the Centrepay Policy and Terms, this fee is not to be passed on to Centrepay customers.

See Processing a Centrepay Business Application for information about Centrepay fee-free businesses.

The Centrepay fee can be paid via the following options:

• Billing at Source (BAS), this method is automatically applied to all Centrepay businesses. The fees and GST are automatically withheld from customer's Centrepay deductions before they are paid to the business
• Billing in Arrears (BIA), this is an additional condition which some businesses may be approved for. Billing in Arrears allows the business to receive the full customer deduction amount and be periodically billed for the fees

On request from a business, BIA can be approved by National business Gateway - Business application staff or Third Party Programmes team for real estate agents, councils, and schools, except where a prior determination has been made by Deduction and Confirmation - Centrepay.

Staff should consider the reason the business has asked for BIA to be applied and the number of deductions the business expects to receive. If the business expects to have less than 9 customers, the BIA request should be rejected on this basis.

All other requests for BIA must be referred to Deduction and Confirmation Branch - Centrepay for a decision.

A Centrepay business can receive the following tax invoices:

Billing at Source tax invoice: Services Australia will automatically issue a compulsory tax invoice for businesses who are billed at source via the Organisational Online Mail (OOM) system. The invoice will be produced on or after the last working day of the calendar month when any GST has been collected in that month.

The tax invoice will provide the following information to the business:

• total number of deductions
• total amount of all deductions (dollar amount)
• total fees including GST
• GST component
• net payment delivered to organisation

Billing in Arrears tax invoice: Services Australia will automatically issue a compulsory tax invoice 10 business days from the end of each month. The tax invoice will be emailed to the 'invoice' contact on the Organisation Contact Summary (OSCD) screen of the business record.

The tax invoice will provide the following information to the business:

• Total number of deductions at what fee price
• GST component
• Total amount due

Billing in Arrears tax invoices may fail to generate due to a number of reasons. An 'auto invoice rejected report' is generated and sent to National Business Gateway - Centrepay.