A new Centrelink payment rule is set to take effect next week, marking a significant change for Australians who settle their government debts in person at Australia Post branches. Beginning June 12, 2025, anyone making a Centrelink debt repayment over the counter at Australia Post will be required to pay a minimum of $5 per transaction.
This adjustment, announced by Services Australia, is designed to streamline payment processing and encourage the use of digital channels for smaller repayments.
The $5 minimum repayment requirement applies to all in-person payments made at Australia Post using cash, cheques, credit cards, or EFTPOS. Importantly, this change does not affect other payment methods such as direct debit, BPAY, or online Post Billpay services, which will continue to operate under their existing minimums.
For those who typically make smaller, more frequent repayments, Services Australia recommends switching to digital platforms to avoid disruption and maintain flexibility.
This policy update is part of a broader effort by Services Australia to modernize its operations, reduce administrative costs associated with processing low-value transactions, and promote a digital-first approach to government services. The move follows a previous change in December, when foreign currency cheques and money orders were phased out as acceptable payment options for Centrelink debts.
Centrelink recipients still have a range of options to manage their debts. Payments can be made in full, through a regular payment plan, or by arranging deductions from ongoing Centrelink benefits. Online management remains available via linked myGov accounts, where users can select “Money you owe” to monitor and settle their obligations. Those facing financial hardship are encouraged to contact the Centrelink debt recovery line to discuss tailored solutions.
The introduction of the $5 minimum repayment at Australia Post comes at a time when many Australians are navigating cost-of-living pressures and seeking clarity on government payment rules. While the change may require some adjustment for those accustomed to making small in-person payments, it underscores the government’s commitment to efficient, secure, and accessible debt management processes.
This latest Centrelink payment change is expected to have minimal impact on most recipients, but highlights the ongoing shift toward digital solutions in public service delivery. For those affected, exploring alternative payment methods and staying informed about policy updates will help ensure a smooth transition and continued access to essential support services.