Bill Payment Policy
2014
Table of Contents
1.
Purpose of the Policy .......................................................................................................... 3
2.
Application and objectives of the Policy ............................................................................ 3
3.
Roles and responsibilities of Directorates .......................................................................... 4
4.
Government Policy Principles ............................................................................................. 5
5.
Policy parameters ............................................................................................................... 5
5.1
Invoicing and bill presentment ................................................................................... 5
5.2
Determining payment methods and channels............................................................ 6
5.3
Credit card limit and exemptions ................................................................................ 6
6.
Electronic presentment of bills........................................................................................... 7
7.
Further information ............................................................................................................ 7
Appendix A – Glossary of Terms ............................................................................................ 8
Appendix B – Standard suite of payment methods and payment channels available ........ 10
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1.
Purpose of the Policy
This document has been prepared for the information of ACT Government directorates and
agencies, and aims to:
a)
b)
c)
d)
2.
outline the Government’s policy for bill payment
define bill payment for the purposes of this policy
define the parameters of the policy
establish a consistent approach to bill payment across government.
Application and objectives of the Policy
The ACT Government Bill Payment Policy (the policy) applies to all directorates and agencies
from 1 July 2014, but does not apply to Territory-Owned Corporations. It provides a
framework for the payment of ACT Government bills from the community, including
business. It excludes transactions between directorates and other government agencies.
The ACT Government is committed to capitalising on the opportunities of the digital age to
drive economic growth, provide better services, and strengthen open government and
citizen engagement. Fundamental to delivering on these opportunities is the development
of the Government’s Digital Canberra Action Plan which seeks to:
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accelerate business engagement with the digital economy and help businesses
access new customers and markets
promote Canberra as a modern, dynamic, digital city
use technology to be a more open government and to give citizens greater choice in
how and when they use services
be more innovative in how we engage with the community and with local small
business.
In this context, the objectives of the Bill Payment Policy are:
a) Consistency in service offering – progressively standardise the suite of payment
services available across government while allowing “fit for purpose” application of
those services; and standardise the branding and format (look and feel) for bill
presentment while taking into account the limitations of the current systems and the
needs of specific business or regulatory processes
b) Electronic notification and presentment – facilitate a staged approach to electronic
notification and presentment of bills to the community
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c) Electronic payments – implement strategies to further promote electronic payment
to government.
The measures also meet the Government's efforts on regulatory and process reform to
provide efficient and effective regulatory outcomes and streamlined services. These will
remove the red tape from dealings between Government and the community.
3.
Roles and responsibilities of Directorates
All ACT Government Directorates and agencies are required to deliver bill payment services
in accordance with the policy, and ensure its intention is adhered to at implementation.
Different areas in the Chief Minister, Treasury and Economic Development Directorate have
specific responsibilities under this policy, outlined below.
The role of Service ACT is to:

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Maintain the policy document and ensure it is regularly reviewed to maintain its
relevance to Government policy objectives
Provide directorates with advice and assistance with the application of the policy
Maintain cross directorate communication and provide advice to the ACT Public
Service Strategic Board as required
Maintain an electronic version of the bill payment policy document to ensure it is
accessible to all directorates and agencies.
The role of Access Canberra is to:
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Develop standards for government bills, including a consistent layout and format
Provide payment channels on behalf of directorates, and promote these to the
community
Provide advice to directorates on the standard suite of payment methods available
and transaction costs
Manage key business systems that facilitate bill payment and reconciliation
Monitor and analyse industry changes and community expectations in relation to
payment options to government
Continue to implement channel migration strategies that facilitate increase access to
online payment services
Consider the effects on the community of the introduction of new digital payment
facilities.
The role of Shared Services ICT is to:

Maintain Information and Communications Technology (ICT) infrastructure to
support business systems that facilitate bill payment and reconciliation
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
4.
Monitor and analyse industry changes in payment options to government including
benchmarking of payment service where appropriate.
Government Policy Principles
The key principles for the policy are:
a) Cost effective for government – direct transactional costs (bank fees, payment
infrastructure etc) must be as cost effective as possible given the transaction value
and volume
b) Process efficient – downstream processing costs (impact on other parts of
government etc) must be as efficient as possible
c) Customer convenience – simple and cost effective options for the customer
d) Digital first – new services must designed with a digital payment solution foremost
allowing customer choice of digital service
e) Adaptable – payment methods that are flexible, ensure fit for purpose while able to
adapt to emerging payment trends and facilities.
These principles provide a consistent and agreed platform for bill payment services across
government. They should be considered when designing new, or reviewing current
approaches to bill payment, including payment method and payment channels to be
offered. The application of these principles should be assessed taking into account:
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
how each principle individually and collectively impacts on government and the
customer
bill type, volume and value
the nature of the customer receiving the bill, and
any legislative or legal requirements.
In circumstances where equal application of each principle is not attainable, and at times
may be in conflict with each other, directorates should prioritise the principles drawing on
other relevant factors they have identified. This rationale should be provided and
considered as part of the approval of new or revised approaches to bill payment.
5.
Policy parameters
5.1 Invoicing and bill presentment
It is the responsibility of all directorates issuing invoices and bills to the community to
ensure the value of the payment is accurately presented. All invoices, bills and other
payment advice will be presented in a manner that:
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
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ensures they are identifiable as being issued by the ACT Government, including an
ACT Government logo
clearly identifies for the customer the payment channels available for payment of
the bill, and acceptable payment methods
clearly identifies for the customer when payment is due to government, noting
payment methods where time delays are incurred between customer payment and
government receipt of money
advises of the preferred mechanism for the customer to contact the bill issuer in
case of queries or issues, including circumstances where a customer is unable to pay
a bill.
5.2 Determining payment methods and channels
Determining the appropriate payment method and channel for each bill type is integral to
containing individual transactions costs. This cost is derived from a combination of the
method and channel used by the customer. Directorates need to offer payment methods
and channels that are cost effective for government, and also provide a level of choice with
consideration to the nature of the customer group.
Low value, high volume transactions should offer a range of payment methods that are
widely accessible, and made available through different channels to maximise choice for the
customer. In contrast, high value payments, many of these generally low volume, should
offer payment methods that have the lowest transaction costs for government.
The government provides the ability for the community to make payments through existing
channels of internet, shopfronts and call centres. Simple, low value payment types
generally require an easy interaction and transaction costs can be contained by encouraging
customers to use lower cost non-government payment channels, through third party
providers such as Australia Post or BPay. These options offer customer choice and free up
government payment channels for more complex transactions.
There are a range of payment methods acceptable to government to cater for a diverse
range of transactions. A standard suite of payment methods, and the channel they are
made available through, is outlined at Appendix B. From this standard suite directorates are
able to identify and offer customer payment options with reference to the principles of this
policy.
5.3 Credit card limit and exemptions
The credit card payment method is restricted to a maximum of $10,000 for a single payment
transaction where the Government controls the point of sale. However, in relation to
Revenue Office taxation lines the credit card limit is restricted to a maximum of $5,000 for a
single payment transaction, with BPay and other electronic payment options to be made
available to payees including for amounts higher than this.
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Visa and Mastercard are the endorsed credit cards, and other credit and charge cards will
only be accepted if they charge a Merchant Service Fee (MSF) which is within 20 per cent of
the current lowest fee. The credit card limit and endorsement of specific cards is in place to
control and contain the potentially excessive MSF cost to government.
Some invoice and bill payment types may be exempt from accepting credit cards due to the
potential cost to government. Examples of the type of payment transactions where credit
cards may not be accepted are Payroll Tax, Return Taxes and Lease Variation Charge. Other
payment transactions may also be excluded from credit cards at the discretion of the
administering directorate, consistent with the principles set out in this policy.
6.
Electronic presentment of bills
To align with Government’s direction of capitalising on the digital age, a key objective of the
Bill Payment Policy is to establish electronic notification and bill presentment to the
community. This has far reaching benefits of efficiency and effectiveness for the community
and for government.
This Policy seeks to establish the platform for this reform and as such requires that any new
bill payment system designed post 1 July 2014 must consider building in capability for
electronic delivery of bills whereby the customer has the option to receive their bill via
electronic presentment. As business systems are upgraded in the future directorates are to
make similar considerations of electronic presentment for existing bills. Investment in this
functionality must consider the principles and parameters outlined at Sections 4 and 5.
7.
Further information
For further information on the ACT Government Bill Payment Policy please contact:
David Colussi, Director Service ACT
Chief Minister, Treasury and Economic Development Directorate
Ph: 6207 0215 or email david.colussi@act.gov.au
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Appendix A – Glossary of Terms
Bill: For the purposes of this policy a bill is defined as a statement of fees or charges issued
by an ACT Government directorate to a customer for services and/or supplies rendered. It
excludes fines and infringement notices. It also excludes transactions between directorates
and other government agencies.
BPay: A centralised bill payment service to enable customers to pay bills by contacting their
own financial institution (by phone or internet) to initiate a payment from their cheque,
savings or credit account. A payment will only be authorised if sufficient funds or credit is
available in the customer account. Bpay payments incur a transaction charge and any
payments made from a credit account incur a MSF.
Credit Payment: A payment made by the customer who authorises funds being debited
against their credit or charge card account. A credit payment can be made with ‘card
present’ at a shopfront counter, or ‘card absent’ by internet, IVR or phone. Each credit card
payment attracts a Merchant Service Fee, which is charged to the Government.
Direct Debit: A Payment Method which entails the transfer of funds from a customer
account to a government account, based on a pre arranged agreement between the
customer and Government. A Direct debit payment may be pre arranged but customer
initiated, or it may entail a regular deduction, without prior notification, from a customer
account. Direct debit can also involve the pre agreed deduction of funds prior to those
funds being transferred into the customer account. A payroll deduction or a direct
deduction from a government benefit (eg Centrelink) is an example of this type of Direct
Debit.
EFT: Electronic Funds Transfer. The pre arranged bank to bank electronic transfer of funds
for making a payment to government. This form of payment is usually made by business to
government and is usually for large amounts.
EFTPOS Debit Payment: Electronic Payment at Point Of Sale. This payment involves the
debiting of funds from a customer cheque or savings account and is authorised by the
customer at a counter by swiping a debit card and input of a PIN number.
Electronic presentment: Electronic presentment has four options. Delivery via email (eg PDF
attachment and no account), logging onto an account to view a bill (eg like internet banking
where you can view your statement and history), logging onto an account to view an
account balance (no statements eg Myway) or logging onto an account and viewing
statements and account balance.
IVR: Interactive Voice Response. A telephone system which uses computer generated voice
instructions to enable the community to make a payment by pressing the handset keys.
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MSF: Merchant Service Fee. The fee charged by the bank for each customer payment made
by credit card, and is calculated based on a percentage of the payment value.
Offsystem BSB: Payment service product supplied by banking providers typically used for
electronic funds transfer of high value payments. Off-system BSB (OSBSB) uses a specific
type of BSB to identify the biller (eg Revenue Office or Shared Services Finance) and a
specific type of account number to identify the customer in the particular business system
(eg Accounts Receivables (AR) in Oracle EBS). The objective of using an OSBSB is to improve
the likelihood of receipting monies against the correct customer. The transaction report
from the bank can also be used to develop an interface that automatically receipts the funds
received against the customer account.
Payment Service: A government service which results in a community to government
payment being made. For example, ‘Vehicle Registration Renewal’ is a Payment Service.
Payment channel: Access points where a payment to government can be made. Payment
Channels include mail, government counters, Australia Post, BPay, internet and telephone.
Payment Method: Methods by which customers are able to make a payment for a Payment
Service through one of the available Payment Channels. Payment Methods include cash,
cheque, credit, EFTPOS Debit and Direct Debit.
PostBillPay: The bill payment system used by Australia Post to enable Government bills to
be paid at Australia Post counters, IVR phone and web site.
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Appendix B – Standard suite of payment methods and payment channels
available
Principal payment
channel
Acceptable payment methods
Example of payment channel
Face to face
Cash
ACT Government counters eg
Access Canberra Shopfronts,
Revenue Office, Environment
and Planning Directorate,
Registrar Generals Office,
Office of Fair Trading etc
Cheque
EFTPOS Debit
Credit Card (Visa and Mastercard)
Face to face
Cash
Cheque
Non ACT Government
counters eg Australia Post
EFTPOS Debit
Credit Card (Visa and Mastercard)
Telephone
Credit Card (Visa and Mastercard)
Operator response eg Access
Canberra call centre
Telephone
Credit Card (Visa and Mastercard)
Automated response (IVR) eg
Australia Post, Access
Canberra
Debit (only Australia Post)
Internet
Credit Card (Visa and Mastercard)
Direct debit (some)
ACT Government operated eg
Access Canberra payments
gateway
EFT (some)
Internet
Credit Card (Visa and Mastercard)
Debit
BPay
Credit Card (Visa and Mastercard)
Debit
Mail
Cheque
Non Government operated eg
Australia Post Bill Pay
Note: channel can be either
phone or internet
Note: payment can be
collected by third party or by
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Principal payment
channel
Acceptable payment methods
Example of payment channel
government agency
Direct Debit
Debit
Note: payment can be either
customer initiated or
automated by prior approval.
Payment can be deduction
before or after customer
receipt of wage/allowance
Electronic Funds
Transfer (EFT)
Debit
Note: channel can be either
phone or internet
Off System BSB
Debit
Note: payment is made by EFT
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