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Changes to Centrelink Debt Repayments at Australia Post
Centrelink recipients who repay debts in person at Australia Post will face new requirements starting from June 12, 2025. Services Australia has informed the public that a minimum repayment amount will be introduced for these transactions.
Key Changes
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Minimum Repayment Amount: From June 12, 2025, individuals will be required to make a minimum repayment of $5 when settling debts at Australia Post locations. This means that any repayment under this amount will not be accepted over the counter.
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Payment Methods: While this change specifically affects in-person payments at Australia Post, Services Australia emphasises that other payment methods, such as direct debit and BPAY, remain unaffected. Those preferencing these alternatives will have no minimum financial constraint.
- Repayment Procedures: Payments made in person can still be done using cash, cheques, credit cards, or EFTPOS. However, should you usually repay smaller amounts, considering alternative payment methods could be more beneficial under the new rules.
Important Considerations
When opting to use a credit card for repayments, users should be cautious of potential fees, including interest and cash advance charges imposed by their financial institutions. This financial implication may affect individuals’ decisions regarding their repayment methods.
Other Updates
This announcement follows a recent policy change from December 19, when Services Australia ceased the acceptance of foreign currency cheques and money orders for debt repayments. Although Centrelink continues to issue payments via cheque, recipients receiving this method may experience delays of at least two weeks compared to direct deposit.
Repayment Options for Centrelink Debt
Recipients can choose to either repay their Centrelink debts in full or establish a structured payment plan. This can include automatic deductions from regular Centrelink payments over a set period, offering flexibility for managing repayments.
For more detail on the repayment processes and options available, individuals can visit Services Australia’s information page here.
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