CENTREPAY
PROCEDURAL GUIDE FOR BUSINESSES
Contents
PROCEDURAL GUIDE FOR BUSINESSES 1
1. What is Centrepay? 3
1.1. Centrepay’s objective 3
1.2. Purpose of this document 4
1.3. Important points to note 4
1.4. Centrepay framework 4
1.5. Changes to the framework 5
2. Before you apply 5
2.1. Understanding the Policy and Terms 5
2.2. Changes to Business details 5
2.3. Business arrangements 6
2.4. Centrepay service categories and service reasons 7
2.5. Included service reasons 7
2.6. Excluded expenses and payment arrangements 11
2.7. Registrations and accreditations 12
2.8. Provision of necessary information 12
2.9. Fees associated with Centrepay 12
2.10. Fee structure 12
2.11. Options for payment of fees 13
2.12. Fee reporting 13
3. Applying for Centrepay 13
3.1. Application process 13
3.2. Authority to complete the Business Application 13
3.3. Once approved 14
4. Using Centrepay 14
4.1. Deduction Authority 14
4.2. How Deductions are set up 15
4.3. Deductions through the department 15
4.4. Deductions through Businesses 15
4.5. Deduction Authority consent wording 17
4.6. Proof of authority 17
4.7. Commencement of Deductions 18
4.8. Order of Deductions 18
4.9. Types of Deductions 18
4.10. Payment of Deductions 19
4.11. Reasons why a full Deduction might not be made 20
4.12. Overpayments and Excess Credits 20
4.13. Cancellation of Deductions 20
4.14. Promoting Centrepay 21
4.15. Criteria 21
4.16. Materials not permitted 21
4.17. Summary of standard conventions 21
4.18. Feedback and complaints 23
4.19. Important details 23
5. Online services for Centrepay 24
5.1. Centrelink Business Online Services (CBOS) 24
5.2. How to get access 24
5.3. Organisational Online Mail (OOM) 25
5.4. Centrelink deduction and payment reconciliation report 25
5.5. Deductions and Payments Application 25
5.6. Varying Deductions 25
5.7. Centrepay Bulk Upload Service 26
5.8. Service availability 26
6. Business Responsibilities 26
6.1. Departmental requirements for Business 26
6.2. Customer Representatives 27
6.3. Centrepay program assurance reviews and audits 27
6.4. Failure to meet expectations 27
6.5. Review of departmental decisions 28
6.6. How to lodge a request for a review 28
6.7. Conduct of reviews 28
6.8. Management of Customer information 28
6.9. Withdrawing from Centrepay 29
6.10. Business obligations if withdrawing from Centrepay 30
6.11. Recommencing the use of Centrepay 30
1. What is Centrepay?
Centrepay is a voluntary bill-paying service that is free for Centrelink customers.
Through Centrepay, a Customer can authorise the department to deduct regular amounts from their welfare payments to pay their bills and expenses to a Business.
1.1. Centrepay’s objective
The objective of Centrepay is to assist Customers in managing expenses that are consistent with the purposes of their welfare payments, and reducing financial risk by providing a facility to have regular Deductions made from their welfare payments.
1.2. Purpose of this document
This procedural guide provides practical information about the operation of Centrepay.
This guide should be read in conjunction with Centrepay Policy and Terms that details the rule setting and conditions for Centrepay. Words and terms used in this procedural guide have the same meaning as defined in Centrepay Policy and Terms.
User guides are also available with step-by-step details for specific processes.
All documents are available on our website at humanservices.gov.au/centrepaybusiness
« Note: there is also a Centrepay Procedural Guide for Customers which will provide information for Customers about using and managing their Centrepay Deductions.
1.3. Important points to note
• Centrepay is voluntary and Customers may withdraw or change their Deduction Authorisation at any time.
• Centrepay is not a guaranteed source of payment for goods and services.
• A Customer’s welfare payment may be varied by a number of factors (such as debts owed, earnings impacting payments received or participation reasons) that may affect the amount that can be paid to a Business.
• Businesses are responsible for accounting for any amounts owed as a result of a Customer’s reduced welfare payment.
· Businesses must keep accurate records of the Customer’s Deduction instructions.
· It is mandatory to obtain a Deduction Authority from the Customer or their Customer Representative before actioning any Centrepay Deductions.
1.4. Centrepay framework
The Centrepay framework comprises the following:
a. Policy and Terms
• Policy - provides Centrelink stakeholders with an understanding of Centrepay and how it operates
• Terms - sets out contractual terms that would apply to both the department and Business approved to use Centrepay
b. Procedural Guide for Businesses
• Provides practical information about the operational aspects of Centrepay and advice on where to go for further information
c. Business Application
• Completed by a Business seeking approval to use Centrepay and used by the department to determine whether approval should be provided
d. Approval letter
• Confirms the department's approval for a Business to use Centrepay and outlines the category of goods and services approved, fees, Centrelink Business Online Services (CBOS) access level, Deduction report frequency, and any additional conditions to the policy and terms that may apply
e. Deduction Authority
• A record of consent from a Customer or their Customer Representative, to add or vary a Centrepay Deduction
Businesses are responsible for keeping up to date with any variations to the Centrepay framework. Where a Business does not agree with an aspect of the Centrepay framework, it should contact the department to discuss this or reconsider its use of Centrepay.
1.5. Changes to the framework
The department may, from time to time, make changes to the Centrepay framework (including this Procedural Guide) and publish advice of these updates on our website: humanservices.gov.au/centrepaybusiness
Businesses are responsible for accessing and understanding the latest Centrepay framework prior to using or applying to use Centrepay.
2. Before you apply
2.1. Understanding the Policy and Terms
The Policy describes the Centrepay business model and sets out the rules and approach that govern Business’s approval and use of Centrepay. The Terms set out the conditions under which the department agrees to make Centrepay available to Businesses.
Businesses need to ensure that all employees, agents or contractors who are involved with Centrepay read and understand the new Policy and Terms and this Procedural Guide. The Business needs to accept the Centrepay terms and agree to act consistently with the Policy, Terms and Procedural Guide for Businesses.
The department cannot provide legal advice on the Policy and Terms and encourages Businesses, if they have any legal queries, to seek independent legal advice before deciding to apply to use Centrepay.
2.2. Changes to Business details
a. Change to information provided
Changes to any of the information provided by the Business, including on the Business Application, must be notified to the department within 5 business days.
This includes (but is not limited to) changes to:
· the Business name (legal, business or trading)
· physical or postal address
· contact details (email address, phone number, fax number)
· goods and/or services provided (if intending to use Centrepay in relation to these)
· bank account details
· contact officer
· licences, registrations or accreditations.
b. Change in Business ownership
Where there is a change in the ownership of a Business and the new Business wishes to continue using Centrepay, the new Business must apply to the department via their Account Manager to enable the transfer of existing Deduction Authorities from one organisation to the new organisation.
If the department allows existing Deduction Authorities to be transferred, the existing Business must notify each Customer, in writing and at least 14 calendar days before the transfer of the operations, that if the Customer does not consent to the new ownership using the existing Deduction Authority, the Customer must advise the Business or department that their consent is withdrawn. If the transfer is not known 14 days in advance, the existing Business must notify each Customer as soon as practicable after the transfer is known.
If a Customer advises the Business of their intention to withdraw their Deduction Authority before the transfer of ownership, the Business must notify the new Business that the Customer’s consent is withdrawn.
If a new Business has taken over operations and Customers were not previously notified, the new Business must notify each Customer as soon as practicable and provide the Customers with an option to withdraw from their Centrepay arrangements.
c. Change to goods and services
Businesses are approved to use Centrepay for specific goods and services that are notified in the approval letter. If a Business changes the goods or services it provides or wants to use Centrepay for additional goods or services, the Business is required to seek new approval by submitting a new Business Application to the department.
2.3. Business arrangements
Centrepay is a payment method for Businesses that provide goods or services directly to Customers. There may be instances where some of the Business’s management or administration arrangements (such as ICT support or financial accounting) are outsourced and include activities related to Centrepay. These arrangements include:
• Outsourced agent: this is where the Business has third party outsourcing arrangements in place
• Head office administered: this is where a Business’s goods or services are provided by local outlets. This includes some franchise arrangements.
These types of arrangements do not relieve the Business of its liabilities or obligations under the Centrepay Policy and Terms. The Business is responsible for any third party compliance for Centrepay and any default in its performance.
« Note: this differs from the exclusion (see 2.6 Excluded expenses and payment arrangements) relating to brokers, arrangers or similar ‘middle men’ arrangements that are not eligible for Centrepay.
2.4. Centrepay service categories and service reasons
· Service categories are used in the policy to describe general categories of types of goods and services that can or cannot be paid for using Centrepay.
· Service reasons are used to describe specific goods and services that a Business has been approved to use Centrepay for. These are included in the approval letter sent to a Business when it has been approved to use Centrepay.
Service reasons are used in the deduction and reconciliation reports provided to Businesses as well as in statements and reports received by Customers.
Businesses who provide only goods and services specifically excluded in the Centrepay Policy and Terms are not eligible for Centrepay. Businesses uncertain of their suitability for Centrepay should contact the Centrepay Helpdesk on 1800 044 063 to get assistance.
The department’s decision not to allow Centrepay to be used for certain goods and services is final.
« Note: approval for one service reason does not imply approval for additional service reasons. Should a Business wish to receive Deductions under one or more additional service reasons, a new Business Application will need to be submitted.
2.5. Included service reasons
Centrepay Deductions can be made for the range of goods and services that fall within one of the categories in the following list:
Service reason category – Accommodation (includes rent, bond and arrears)
· Service reason – Boarding House Accommodation
Service reason code – BDH
Description – Payment for board and/or lodgings either in a private home or other shared accommodation
· Service reason – Caravan Park Fees
Service reason code – CPF
Description – Rental and/or site costs in a caravan park
· Service reason – General Community Housing
Service reason code – GCH
Description – Accommodation provided by community organisations
· Service reason – Indigenous Community Housing
Service reason code – DIH
Description – Accommodation provided by Indigenous community organisations
· Service reason – Short-Term Accommodation
Service reason code – STA
Description – Short-term accommodation not specifically for Indigenous Australians, including sheltered accommodation, disability, rehabilitation and hostels
· Service reason – Indigenous Short-Term Accommodation
Service reason code – ISH
Description – Short-term accommodation for Indigenous Australians, including sheltered accommodation, disability, rehabilitation and hostels
· Service reason – Private Landlords
Service reason code – PRD
Description – Rent charged by landlords for private accommodation
· Service reason – Real Estate Agents
Service reason code – EAG
Description – Rent paid to an appointed real estate agent
· Service reason – Property Management
Service reason code – PMG
Description – Rent paid to an appointed property manager
· Service reason – Supported Accommodation
Service reason code – RVF
Description – Fees and charges for retirement village, nursing home, lifestyle village or hospice style accommodation.
Service reason category – Education and Employment
· Service reason – Child Care Services
Service reason code – CHC
Description – Ongoing, after school, occasional and holiday child care services by registered carers and child care providers approved by the Department of Social Services. Can include arrears payments
· Service reason – Education Expenses
Service reason code – EDF
Description – Fees and charges for education services to any registered educational provider, and any related educational expenses including uniforms, equipment, workshops and excursions. Can include arrears payments
· Service reason – Employment Expenses
Service reason code – TOT
Description – Employment-related expenses, including tools of trade, work uniforms, protective clothing, training and footwear.
Service reason category – Health
· Service reason – Funeral Expenses
Service reason code – FBF
Description – Funeral plans and bonds, prepaid funerals and actual costs of a funeral to funeral homes, funeral directors or other providers that hold appropriate accreditations and registrations. Does not include funeral insurance
· Service reason – Ambulance
Service reason code – AMB
Description – Provision of ambulance or associated services such as payments for services provided by the Flying Doctor Service, emergency helicopter transfer service and other similar services
· Service reason – Medical Services and Equipment
Service reason code – MEX
Description – Medical services such as consultations, medication, hospital costs and rehabilitation. Equipment such as wheelchairs, crutches, oxygen tanks. This service reason also includes veterinarian expenses for domestic pets