Centrelink updating Government EasyPay system from September 6

Services Australia's Hank Jongen next to Centrelink sign
Services Australia's Hank Jongen said the payment system is getting an overhaul next month and recipients might notice some changes. (Source: Getty/Services Australia)

Centrelink recipients will soon notice a change in the way they pay Services Australia charges if they use a debit or credit card. The Reserve Bank of Australia (RBA) is replacing the card payment system the agency uses, which is called Government EasyPay.

The rollover is set to begin on September 6. Services Australia General Manager Hank Jongen told Yahoo Finance the upgrade is essential for everyone.

"This change will strengthen security to help protect both the agency and our customers against online credit and debit card transaction fraud," he said.

Recipients have been warned that this update will mean they might be prompted for further information when they pay for something.

It's similar to when you send money to a new person, with your bank or financial institution asking for a one-time code to ensure it's really you transferring the funds.

When Centrelink users pay with a debit or credit card for the first time after the rollover, they could be told to input a code or their personal details.

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Codes or details might also need to be sent if the payment amount is substantially different to your regular charges.

"There are no changes to how we make payments to customers, only changes to how payments are made to us," Jongen told Yahoo Finance.

"There are no changes to the types of credit or debit cards accepted by the agency."

But Services Australia warned people to continue to be vigilant when it comes to payment notices.

"When making payments to us, make sure you’re only dealing with our genuine websites," the government body said.

"These are servicesaustralia.gov.au and my.gov.au. You should continue to use the links on these websites, your online account through myGov or your Express Plus app to access Government EasyPay."

Jongen told Yahoo Finance that the number of scams in Australia is still rising, and they are getting increasingly sophisticated and affecting every generation.

The Government EasyPay system is used by Services Australia, the Australian Taxation Office, the Department of the Treasury, and the Department of Defence.

It's used to collect a range of payments, including tax instalments, child support payments and charges relating to Freedom of Information requests.