Centrelink debt repayment changes hit Australia Post on 12 June

If you’re one of the many Australians who manage Centrelink debts, an important change could affect how you make repayments. 

From 12 June 2025, Services Australia is introducing a new minimum repayment amount for those who pay their Centrelink debts in person at Australia Post outlets. Here’s what you need to know to stay ahead of the game and avoid surprises at the counter.

Centrelink recipients can repay debts in various ways: direct debit, BPAY, credit card, or paying in person at any Australia Post office. 

But from 12 June 2025, if you choose to pay in person at Australia Post, you’ll need to make sure your payment is at least $5. If you’re used to popping in to pay off a few dollars here and there, you’ll need to adjust your approach.

This new $5 minimum applies to all over-the-counter transactions at Australia Post, whether you’re paying by cash, cheque, credit card, or EFTPOS. If you try to pay less than $5, you’ll be politely turned away and asked to use another method.

If you prefer to pay your Centrelink debt using direct debit, BPAY, or Australia Post’s online Post Billpay service, you’re in luck—there’s no minimum payment change for these methods. You can continue to pay off your debt in smaller increments if that suits your budget.

Why the change?

While Services Australia hasn’t spelled out the exact reason for the new minimum, it’s likely a move to streamline transactions and reduce administrative costs. 

Processing minimal in-person payments can be time-consuming and costly for Australia Post and Services Australia. Encouraging larger, less frequent payments makes the system more efficient for everyone involved.

This isn’t the only recent update to Centrelink debt repayments. Late last year, Services Australia stopped accepting foreign currency cheques and money orders as a form of debt repayment. 

If you’re living overseas or have family who helps you out from abroad, you’ll need to find another way to settle debts.

It’s also worth noting that while Centrelink still issues cheques for some payments, they can take at least two weeks to arrive compared to direct deposit.

Payment methods: Pros and cons

• In person at Australia Post: Now with a $5 minimum, but still a good option if you prefer face-to-face service or don’t have easy access to online banking.
• Direct debit/BPAY/Post Billpay: No minimum, convenient, and you can set up regular payments to chip away at your debt.
• Credit card: Handy in a pinch, but beware—your bank may charge interest or cash advance fees, which can add up quickly.

If you’re worried about managing repayments, remember you can set up a payment arrangement with Centrelink. This allows you to pay off your debt in instalments that suit your financial situation. 

You can even arrange for deductions directly from your regular Centrelink payment, so you don’t have to think about it each fortnight.

It’s always a good idea to stay updated with Centrelink rules and changes in payment methods. A small tweak like this $5 minimum might seem minor, but it can catch you out if you’re not prepared, especially if you’re on a tight budget or like to pay off debts in small amounts.

Have you ever been caught up in a change to Centrelink payments or debt repayments? Do you prefer to pay in person, or have you switched to online methods? We’d love to hear your experiences and tips for managing Centrelink debts—share your thoughts in the comments below!

Also read: The $15,000 Centrelink trap every grandparent should know about