Reforms are coming to the government's free bill-paying service Centrepay. The changes are aimed at protecting users from financial exploitation and abuse. High-risk services will be removed and new compliance frameworks introduced.
The changes are set to begin on July 1, next year following extensive consultation.
Key reforms include removing high-risk services, like consumer leases, and introducing stronger safeguards, such as mandatory deduction targets and end dates. A new compliance framework will hold businesses accountable using tailored contracts and improved complaint management processes.
Emphasising the need to prevent predatory practices, Bill Shorten said “Centrepay must not expose people to financial risk.” Advocates, like Bettina Cooper from Mob Strong Debt Help, Julia Davis from Financial Rights and Cassandra Goldie from the Australian Council of Social Service have welcomed the reforms, highlighting their role in addressing long-standing misuse of the service.
