Have Your Say: Centrepay Reform and Its Impact on Veterinary Practices

The Federal Government is proposing reforms to Centrepay, the Centrelink-managed bill payment service, including the introduction of mandatory target amounts (maximum allowable deductions) for a range of services—including, for the first time, veterinary services. The AVA welcomes the recognition of veterinary care as a standalone service category within Centrepay, acknowledging its role in animal welfare, public health, and community wellbeing—particularly in remote and disadvantaged regions.

However, there are concerns that the proposed requirement for clients to nominate a fixed “target amount” may negatively impact access to veterinary care and increase administrative burdens for practices. We have identified several potential unintended consequences of this reform, including:

• Inflexibility in managing evolving treatment costs: Veterinary care is often unpredictable, particularly in urgent or complex cases. Fixed deduction amounts may not reflect actual costs as treatment progresses, leading to repeated paperwork or service delays.
• Reduced accessibility for vulnerable clients: Many Centrepay users in remote Australia face barriers such as low literacy, language differences, or mental health challenges. Multiple authorisations for payment changes may be impractical and culturally inappropriate during distressing times.
• Increased financial risk for clinics: Without the ability to link deductions to account balances or incentivise timely repayments, clinics may face growing levels of bad debt—placing strain on already thin margins in rural and remote areas.

While the reforms are aimed at improving transparency and consumer protection, there is a risk that rigid payment structures may discourage providers from offering services to low-income clients, or force more animals to go untreated.

What do you think?

The AVA is seeking feedback from members across all Divisions to better understand how this proposed change may affect veterinary practices in various jurisdictions.

• Would mandatory deduction limits improve or hinder your ability to provide care to Centrepay clients?
• Are there regional differences in how this would play out?

If significant concerns are raised, the AVA advocacy team will consider engaging with Services Australia and other stakeholders to advocate for more practical solutions.

Please send your comments to robyn.whitaker@ava.com.au by 30 June 2025.

Let’s ensure the system continues to work for the animals and communities who need it most.