What is Centrepay? This question is one that we answer a lot in our office, due to the large number of our clients who are receiving welfare payments.  Centrepay is a way for a tenant who is receiving welfare payments to pay their bills.  I would estimate that approximately 40% of our tenants choose to pay their rent in this manner.

Any tenant that is receiving a form of Government payment, from single parenting, disability payment, carers payment through to newstart allowance, can request that they pay their rent using this method.

There are a lot of reasons that it makes sense for a landlord to have their tenant pay their rent this way, but the most important one, is that is an easy payment method, that takes the onus off the tenant to remember to make their payment.  The rent is set up to automatically be paid to our office and it comes in on a regular schedule, according to when a tenant is paid their welfare funds.

The money comes to our office directly from Centrelink and we see this as like a little insurance policy for you as a landlord.  The tenant approves the funds to be taken for their rent before they get paid and generally this system runs very smoothly with minimal fuss.

There is a cost of 99cents per transaction that is charged by the Australian Government on the payment and it is the responsibility of the landlord to cover this cost.  The fee is tax deductible and in the majority of cases, it will only cost you approximately $26 – $52 per year, for the assurance that your rent will be coming in regularly.

If I have not answered all of your questions with regard to Centrepay in this blog, then please do not hesitate to call me at the office to discuss your concerns.