The 2025 Centrepay changes may indirectly affect SMEs by removing services like motor vehicle registration and food provisions, potentially reducing customer demand, especially in remote areas. SMEs using Centrepay will also face new compliance and onboarding requirements, increasing administrative work.
In 2025, both Centrepay and the Jobseeker program will undergo significant changes that may affect Australians relying on Centrelink payments.
For Jobseeker recipients, these changes will require careful planning and understanding to ensure they can continue to meet their obligations and manage their finances effectively. The upcoming reforms will remove key services that some people depend on, and for those starting a business while receiving Jobseeker, the updated rules will have a direct impact on how they can manage their finances and comply with regulations.
Key centrepay changes
- Business Compliance:
SMEs and businesses using Centrepay will be subject to updated compliance and onboarding processes. This could increase the administrative work for businesses that rely on Centrepay for customer payments. The new compliance measures are intended to ensure that only eligible services and businesses are included in the system, reducing misuse and ensuring a more efficient process. SMEs will need to be aware of these updates and ensure they meet the new requirements to avoid any disruptions in their participation in Centrepay. - Service Removals:
One of the most notable changes to Centrepay will be the removal of certain services. In particular, motor vehicle registration and some food provisions will no longer be available through Centrepay. These services have been identified as underused or misaligned with Centrepay’s broader objectives. For Jobseeker recipients, this means they will need to find alternative ways to pay for these services, especially if they live in remote areas where access to other payment methods may be limited. Those who currently rely on these services to manage their payments will need to explore other options, such as setting up direct bill payments with providers or using other payment services. - Transition Period:
To accommodate those who are affected by these changes, particularly in remote areas, Centrepay will offer a transition period. This means that customers who rely on services like food provisions will have extra time to make alternative arrangements. However, this transition period will not last indefinitely, so it is important for affected customers to plan ahead and make the necessary changes to avoid disruption to their payments. Services Australia will communicate with customers about how to navigate the transition and provide guidance on alternative payment options.
Starting a business
For Jobseeker recipients looking to start a business, the Self Employment Assistance Program (SEAP) provides an important opportunity. This program replaces the NEIS program and offers up to 9 months of income support, as well as business coaching and training to help individuals establish their businesses. While this support can be valuable, it comes with some important requirements that recipients must meet to continue receiving payments.
- Income Reporting:
Accurate income reporting is essential for Jobseeker recipients. Centrelink assesses eligibility for payments based on net income after deducting business expenses. Jobseekers who start a business must report their business income and expenses transparently to avoid penalties. If a business is earning below the minimum wage or generating little to no income, recipients are still required to meet their mutual obligation requirements, either through business work or actively seeking a job. Failure to report income accurately or meet obligations can lead to a loss of support or penalties. - Joining the Self Employment Assistance Program:
Jobseeker recipients can apply for the SEAP to receive income support while working on their business. To stay eligible for this support, participants must demonstrate progress by providing regular updates, including profit and loss statements, business plans, and financial updates. This ensures that participants are working toward creating a sustainable business and are not simply relying on government payments indefinitely. - Meeting Mutual Obligations:
Even if a Jobseeker recipient is not in the SEAP, they are still required to meet mutual obligations in order to keep receiving their payments. This includes working a set number of hours per week at a minimum wage or actively seeking employment if the business is not making a profit. The purpose of these obligations is to encourage individuals to contribute to the workforce and actively seek opportunities, whether through employment or self-employment. If a business is not profitable, Jobseeker recipients are expected to look for other work, and failure to meet these requirements could result in penalties or loss of support.
How to stay compliant and prepare
As both Centrepay and Jobseeker programs undergo these changes, it is important to stay informed and take proactive steps to remain compliant with the updated rules.
- For Jobseekers:
If you’re not part of the program, ensure that you accurately report your business income and expenses to Centrelink. You’ll need to meet the minimum wage requirements or show evidence of active job searching if your business isn’t profitable enough. Keeping track of your income and progress will help ensure that you remain eligible for support. - For Centrepay Users:
Jobseeker recipients who rely on Centrepay should be aware of the services being cut in 2025, such as food provisions and motor vehicle registrations. These changes mean you will need to find alternative ways to manage payments for these services. Start looking for other options now, such as direct billing or using other payment systems to ensure a smooth transition. The extra time for transition should be used wisely to avoid last-minute issues. - For Self-Employed Jobseekers:
If you’re self-employed while receiving Jobseeker payments, continue to report your earnings accurately and keep track of your work hours. Remember, if your business isn’t earning the minimum wage, you must still fulfill your job search obligations. This can be through your business work or by actively looking for other employment. By staying compliant and fulfilling your obligations, you can continue receiving support while you grow your business.
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