Owing money to Centrelink or the Family Assistance Office frequently asked questions
- How will I know that I owe money to Centrelink or the Family Assistance Office?
- What if I cannot pay the amount in full by the due date?
- Will this affect my payments from Centrelink or the Family Assistance Office?
- How much will my payment be reduced by?
- Who can I contact to discuss deductions being made from my Centrelink or Family Assistance Office payment?
- How long will my repayment stay at the negotiated rate?
- When will Centrelink contact me?
- How can I make payments?
- What if I do not pay the amount I owe?
- Why has an external collection agency contacted me?
- Are there any other overpayments that can be recovered from my payments from Centrelink or the Family Assistance Office?
- What are my rights?
- How do I avoid getting a debt?
How will I know that I owe money to Centrelink or the Family Assistance Office?
If you owe money to Centrelink or the Family Assistance Office, you will be sent an "Account Payable" or a letter telling you why you owe the money, the amount owed, when the amount is due to be paid and how you can make the payment. Centrelink manages the recovery of amounts owed to the Family Assistance Office.
What if I cannot pay the amount in full by the due date?
If you are unable to pay the amount owing by the due date, please contact us on 13 6330 as soon as possible. We can help you with advice on payment options.
Will this affect my payments from Centrelink or the Family Assistance Office?
If the amount owing is not paid by the due date, your payments from Centrelink or the Family Assistance Office may be reduced to help repay this amount. You may not be able to get advance payments until the amount owing is fully repaid.
How much will my payment be reduced by?
The standard repayment rate is 15% of your Centrelink payment. If you have other income, such as earnings from employment or investments, the repayment rate can be higher than 15% as it is calculated using a sliding scale based on your income. Different deduction rates apply to Family Assistance Office payments.
Who can I contact to discuss deductions being made from my Centrelink or Family Assistance Office payment?
If you have any questions about your Centrelink or Family Assistance Office payment being reduced to help repay the amount owing, or you would like to discuss the amount being deducted, please contact us on 13 6330.
How long will my repayment stay at the negotiated rate?
If Centrelink agrees to a different repayment rate, this will be for 3 months. After this time the rate will be automatically reviewed based on your income and assets.
When will Centrelink contact me?
If your withholding rate is going to change you will receive a letter 21 days before you come off the negotiated rate.
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How can I make payments?
| Payment method | Detail |
|---|---|
|
Cheques and money orders should be made payable to the Collector of Public Money, Centrelink. Please write your Centrelink Reference Number (CRN) and full name on the back of the cheque or money order and mail the payment to the address shown on your account or repayment letter. |
|
Telephone |
You can make payments by calling Australia Post's POSTbillpay service on 13 1816. The Billpay code and your reference number can be found on your Account Payable letter or any Centrelink or Family Assistance Office letter that has payment options included. |
In person |
If you have an Account Payable letter, a letter from Centrelink or the Family Assistance Office with a bar-coded payment section at the bottom of the page or a Centrelink Repayment Card, you can make payments via Australia Post's POSTbillpay service at any Australian post office or postal outlet. |
Online |
You can make payments via Australia Post's POSTbillpay service. To make a payment, refer to the POSTbillpay website. If you are registered to use our Customer Online Services, you can use the make a repayment service in the Online services section of our website. The Billpay code and your reference number can be found on your Account Payable letter or any Centrelink or Family Assistance Office letter that has payment options included. |
Direct debit |
To arrange automatic deductions from your financial institution account, please contact us on 13 6330. |
BPAY |
You can make payments via BPAY by telephone or internet banking. You can access this service through your own financial institution. The Biller code is 21915. Your reference number can be found on your Account Payable letter or any Centrelink or Family Assistance Office letter that has payment options included. Please note that Centrelink does not accept credit card payments via BPAY. If your financial institution allows a BPAY payment to be made from your credit card, you may be charged additional fees or interest. You should check this with your financial institution before making a payment. |
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What if I do not pay the amount I owe?
If you do not repay the amount owing and Centrelink has not agreed to extend the time for payment, other action may be taken including:
- referring your account to an external collection agency (Dun & Bradstreet or Recoveries Corporation)
- reducing your payments from Centrelink or Family Assistance Office to help repay the amount owing
- referring your case to our solicitors for legal action, and/or
- issuing a garnishee on your wages, your tax refund, other assets and income (including money you may hold in a bank account).
Why has an external collection agency contacted me?
Dun & Bradstreet and Recoveries Corporation are collection agencies contracted to follow up unpaid Centrelink accounts. If you get a letter from either Dun & Bradstreet or Recoveries Corporation, it is important you contact them immediately to discuss your payment options. They may also contact you by telephone.
The privacy and security of your personal information is protected while your account is with Dun & Bradstreet or Recoveries Corporation and your credit rating will not be affected.
Are there any other overpayments that can be recovered from my payments from Centrelink or the Family Assistance Office?
Deductions may be made to recover money owed to some Australian Government departments, including the Child Support Agency and the Department of Veterans Affairs. We also recover some overpayments on behalf of the New Zealand Department of Work and Income.
We will let you know if we are going to recover any of these overpayments from your payments from Centrelink or the Family Assistance Office.
What are my rights?
For information about the privacy of your personal information and the range of review and appeal processes available, refer to your rights.
How do I avoid getting a debt?
For information about how to avoid getting an overpayment, by telling us when things change and by making sure that you get paid the right amount, refer to how to avoid getting a debt information.
Related information
- Guide to Social Security Law: Reviews, Debts & Payment Recovery
- Family Assistance Guide: Debts
- Financial Management and Accountability Act 1997
- Student Assistance Act 1973 - Part 6: Overpayments arising under this Act and certain administrative schemes
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