Centrelink and Medicare Payments 2026: Move from Paper Cheques to Bank Deposits
Services Australia is encouraging people who receive Centrelink payments, Child Support payments or Medicare benefits by paper cheque to move to a more secure electronic payment method. In an update published on 2 October 2026, the agency explained that cheques can be lost in the mail or stolen from a letterbox and advised recipients to update their banking details.
If you still receive a government payment by cheque, this is a good time to check your options, open a suitable bank account if necessary and update your details through the appropriate official service. The announcement encourages recipients to switch to electronic payments; it should not be interpreted as confirmation that every existing cheque payment has already stopped or that all recipients face the same immediate deadline.
What recipients need to know
- Services Australia published its paper-cheque payment update on 2 October 2026.
- Eligible Centrelink and Child Support payments can be directed to an appropriate bank account.
- Medicare benefits are paid electronically using Electronic Funds Transfer (EFT); Medicare needs current bank details to make a payment.
- Recipients can update details online, contact the relevant program or visit a service centre, depending on their circumstances.
- The announcement encourages a safer payment method but does not specify a universal final cheque-payment date for every recipient.
Why Is Services Australia Encouraging People to Stop Using Paper Cheques?
A paper cheque must be delivered, received and deposited or processed before the money becomes available. If a cheque goes missing in the post or is stolen from a mailbox, the recipient may have to contact the relevant agency and follow additional steps to resolve the issue.
Electronic payments can be sent directly to a nominated bank account. This removes the need to wait for a paper cheque to arrive and reduces the risks associated with physical delivery. Recipients can also check their account activity and retain an electronic record of the payment.
Services Australia published its advice on 2 October 2026 for people receiving Centrelink or Child Support payments, or Medicare benefits, by cheque. The agency also published information for community organisations and businesses to help them encourage affected customers to choose a more secure method.
Australia is also moving towards phasing out cheques across the wider payments system. However, the national cheque transition and Services Australia payment arrangements are related but distinct matters. Recipients should follow the instructions issued for their own payment or benefit rather than assume that a general cheque timetable automatically determines their individual situation.
Which Payments and Benefits Are Covered?
| Payment or service | What recipients should know |
|---|---|
| Centrelink payments | Recipients who currently receive eligible payments by cheque should check their payment destination and update banking details through Centrelink where needed. |
| Medicare benefits | Medicare benefits are paid by electronic funds transfer. Recipients need current bank account details recorded with Medicare to receive their benefit. |
| Child Support payments | People receiving Child Support payments by cheque should check the official guidance and update their details using the Child Support service. |
The process differs between Centrelink, Medicare and Child Support. Updating banking details for one service does not necessarily update the details held by another service. Review each relevant account separately.
How to Update Your Centrelink Banking Details
People who receive Centrelink payments can generally manage their payment destination through their Centrelink online account linked to myGov. Before starting, make sure you have the correct details for the bank account you want to use.
Information to prepare
- Your bank or financial institution account name.
- Your BSB number.
- Your bank account number.
- Access to your myGov account and linked Centrelink service, if you plan to update details online.
Steps to update details online
- Sign in to myGov or the myGov app.
- Select Centrelink from your linked services.
- Open the menu and go to the relevant income and assets or banking details section.
- Choose the option to view or edit your banking information.
- Enter the correct account details and review them carefully.
- Submit the update and keep the receipt or confirmation number if one is provided.
The precise screens can vary depending on your account and the service you use. Follow the instructions shown in your official account. If you have a payment nominee or a special account arrangement, you may need to contact Services Australia rather than make the change online.
Services Australia recommends keeping your old account open until the first payment reaches the new account when changing payment destinations. This can help avoid unnecessary disruption while the new details are being used.
How to Add or Update Medicare Bank Details
Medicare benefits are paid electronically through Electronic Funds Transfer. Services Australia needs your current bank account details to pay a Medicare benefit and cannot pay the benefit by cheque or cash.
Update Medicare details through myGov
- Sign in to your myGov account.
- Open Medicare from your linked services. If Medicare is not linked, follow the official linking instructions first.
- Check your homepage for a task or notification asking you to update bank details.
- Select the option to update your bank details when available.
- Enter your bank account name, BSB and account number.
- Save the information and check that the details are recorded correctly.
You can also check bank details through the Medicare online account in myGov or the myGov app. If you cannot complete the process online, contact Medicare or visit a service centre for assistance.
Medicare contact number
132 011
Check the official Medicare contact page for current operating hours and available support options.
What If You Do Not Have a Bank Account?
Services Australia advises people who still receive payments by paper cheque and do not have a bank account to consider opening one. A suitable account can allow eligible payments to be deposited electronically.
Before opening an account, compare the account terms, fees, access options and any requirements imposed by the financial institution. Ask the bank what identification it accepts and whether the account is appropriate for receiving government payments.
If you have difficulty opening or accessing an account, contact Services Australia and explain your circumstances. Ask what payment options and support are available for your situation. Do not assume that an alternative arrangement is automatically available to everyone.
Never give your myGov password or one-time security codes to someone offering to open an account or update payment details on your behalf. Use your bank’s official channels and the government service websites.
Will Centrelink or Medicare Payments Stop If You Do Not Update Your Details?
The 2 October 2026 announcement encourages recipients to move away from paper cheques, but it does not establish a single immediate cancellation date for every cheque payment. Recipients should read individual letters, online messages and instructions from Services Australia to understand what applies to them.
For Medicare, current bank details are required to pay a benefit electronically. If Medicare does not hold the required account details, it cannot pay the benefit until the information needed for the transfer is available.
For Centrelink, incorrect or outdated banking details can result in a payment being sent to the wrong destination or cause delays while the issue is resolved. If you have changed banks, closed an account or discovered an error, update your information promptly and contact Services Australia if a payment is already affected.
Do not ignore an official request for updated information. At the same time, verify unexpected messages by signing in directly to myGov or contacting the relevant agency through a trusted number.
How to Protect Yourself from Payment Scams
Payment changes can create opportunities for scammers to impersonate Services Australia, Centrelink, Medicare, banks or myGov. A message may claim that your payment will be cancelled unless you follow a link immediately.
- Do not enter your myGov password after following an unexpected message link.
- Never share one-time security codes, passwords or online banking credentials with callers or message senders.
- Open myGov by entering its official address yourself or using the official app.
- Verify payment instructions with Services Australia or your bank through contact details obtained independently.
- Do not pay an unofficial fee to change a government payment method or receive a Medicare benefit.
- Keep records of banking updates and check your account after the next scheduled payment.
The paper-cheque announcement is a payment-method update, not an announcement of a new Centrelink bonus or Medicare cash grant. Be cautious of posts claiming that people will automatically receive extra money for switching to bank deposits.
Australia’s Wider Cheque Transition
The Reserve Bank of Australia has explained that cheque use has fallen substantially as electronic payment methods have become more common. Australia is working towards an orderly wind-down of the cheque system over the coming years.
The broader transition has two key milestones: cheque issuance is scheduled to cease by 30 June 2028, while cheque acceptance is scheduled to cease by 30 September 2029. These are national system milestones and should not be confused with a specific Services Australia payment deadline.
For recipients of government payments, the practical next step is to follow the agency’s instructions and move to an appropriate electronic payment arrangement where required. Updating your details now can help you avoid relying on a delivery method that is being phased out.
Frequently Asked Questions
1. What is the latest Centrelink paper-cheque update for October 2026?
Services Australia published an update on 2 October 2026 encouraging people who receive Centrelink or Child Support payments by cheque to choose a more secure payment method, such as direct payment to a bank account.
2. Is the government stopping every paper cheque immediately?
The Services Australia notice encourages affected recipients to switch payment methods but does not specify a universal immediate final date for every payment. Check official instructions for your own circumstances.
3. How can I update my Centrelink bank account?
Sign in to myGov, open Centrelink and follow the official instructions for viewing or editing banking details. You may need to contact Services Australia if your circumstances prevent an online update.
4. How do I add bank details to Medicare?
Link Medicare to myGov, sign in and check your tasks or notifications for the option to update bank details. Enter your account name, BSB and account number, then save the changes.
5. Can Medicare pay a benefit by cheque?
Services Australia states that Medicare benefits are paid through electronic funds transfer and cannot be paid by cheque or cash. Current bank details are required.
6. What if I do not have a bank account?
Consider opening an appropriate account and ask your financial institution about identification requirements and fees. Contact Services Australia if you need help understanding the options available to you.
7. Do I need to update Centrelink and Medicare separately?
Yes, check both services separately. Banking information recorded with one service does not necessarily update the details held by another service.
8. What bank details do I need?
You generally need the account name, BSB and account number. Make sure the account is one you are legally entitled to use and that the details are correct before submitting an update.
9. When will cheques be phased out in Australia?
The national transition schedule provides for cheque issuance to cease by 30 June 2028 and cheque acceptance to cease by 30 September 2029. These are broader system milestones, not necessarily individual Services Australia deadlines.
10. Where can I get official help?
Use Services Australia’s official guides for Centrelink and Medicare banking details. For Medicare enquiries, the official Medicare program line is 132 011. Contact Centrelink through the official contact options listed on the Services Australia website.
Official Government Resources
Update how you get your payments
The Services Australia notice published on 2 October 2026 explains why paper-cheque recipients should choose a more secure payment method.
Read the official payment updateUpdate Centrelink banking details
Follow the official steps for managing where Centrelink payments are sent.
Update Centrelink bank detailsGetting Medicare benefits
Learn how Medicare pays benefits electronically and how to provide or check your bank account information.
Read the Medicare payment guideReserve Bank of Australia: Payments System
Review information about Australia’s broader cheque transition and payment-system developments.
Read the RBA payments informationServices Australia
Access official information about government payments, benefits and contact options.
Visit Services AustraliaThe Bottom Line
Services Australia is encouraging people who receive Centrelink, Child Support or Medicare payments by paper cheque to move to electronic payments. The agency’s update was published on 2 October 2026 and highlights the risk of cheques being lost or stolen in the mail.
Check your current payment method, ensure your banking information is correct and update Centrelink and Medicare separately where necessary. If you do not have a bank account or cannot update your details online, contact the relevant agency for help. Follow official notices for any deadlines that apply to your individual payment.
