If you’re among the thousands of Australians who regularly visit Australia Post to make Centrelink debt repayments, there’s a change coming that could affect how you manage your payments. Starting June 12, 2025, Services Australia is bringing in a new minimum payment requirement that will impact anyone who prefers to handle their debt repayments in person.
The $5 Minimum: What’s Changing
The change is straightforward but could catch many people off guard. From next week, you’ll need to repay at least $5 when making Centrelink debt payments at any Australia Post outlet. This new minimum applies whether you’re paying with cash, cheque, credit card, or EFTPOS over the counter.
“From 12 June 2025, the minimum amount you can repay to us at Australia Post will increase to $5,” Services Australia announced. “You’ll only be able to make a debt repayment over the counter at Australia Post if the amount is $5 or more.”
For many Australians who have been making smaller, regular payments – perhaps $2 or $3 at a time – this change means they’ll need to either save up for larger payments or switch to different payment methods.
Why This Matters for Everyday Australians
This change might seem small, but it could really affect people’s payment strategies. Many Centrelink recipients have gotten into the habit of making small, regular payments as a way to gradually pay off their debts without putting too much pressure on their weekly budget. For someone living week to week, being able to pay $3 here and there can be much easier to manage than suddenly needing to find $5 or more at once.
The timing is important to understand. While the change starts next week, it only applies to over-the-counter transactions at Australia Post. If you’ve been making smaller payments, you still have options.
Your Other Payment Options
The good news is that this minimum doesn’t apply to all payment methods. Services Australia has confirmed that direct debit, BPAY, and Australia Post’s online Post Billpay service won’t be affected by the new $5 minimum. This means you can continue making smaller payments if you switch to one of these digital options.
However, there’s something to consider if you’re thinking about using a credit card for online payments. Banks often charge extra fees for these transactions, including interest and cash advance fees. What might seem like a convenient solution could end up costing you more money.
Direct debit might be the most practical choice for many people. It allows you to set up automatic payments of any amount, helping you stay on top of your debt without having to remember to make manual payments or worry about minimum amounts.
Recent Changes Add to the Mix
This isn’t the only recent change to Centrelink payment methods. Since December 19, Services Australia stopped accepting foreign currency cheques and money orders for debt repayments. While this might not affect most Australians, it shows the government agency is changing how it handles payments.
It’s also worth remembering that while Centrelink still sends cheques to recipients, these payments usually arrive at least two weeks later than direct deposits. If you’re still receiving payments by cheque, switching to direct deposit could help with your cash flow.
Planning Ahead
If you regularly make debt repayments at Australia Post, now is the time to review your payment strategy. Think about whether you can adjust your budget to make $5+ payments, or whether switching to direct debit or BPAY would work better for your situation.
Remember, you have options beyond just the payment method. You can repay your entire debt at once if you’re able to, set up a payment arrangement with Services Australia, or arrange for automatic deductions from your regular Centrelink payments.
The key is finding a system that works for your money situation and helps you stay on top of your obligations without creating extra stress. With the changes starting next week, it’s worth taking a few minutes to look at your current approach and make any changes you need.
For more information about repaying money owed to Centrelink, you can visit the Services Australia website or speak with staff at your local Centrelink office.
