Definition
Payments describes the process of transferring funds from one party to another, encompassing both outgoing and incoming transactions. This includes the disbursement of funds to individuals, businesses or other entities, as well as the receipt of funds into government accounts.
This capability does not provide guidance on determining eligibility to government entitlements. For this guidance, please refer to Entitlements.
This capability does not include payments between Commonwealth entities and other levels of government, nor between Commonwealth entities.
Purpose
Australian Government outbound payments, including pensions, allowances, taxation refunds, and superannuation, exist to financially support eligible recipients, based on defined circumstances. Payments may also contribute to the income stream of an individual, business, or other entity.
The payment capability also encompasses inbound payments (such as tax collections), ensuring the effective and secure management of government revenue.
The payment capability is realised through:
- efficiently and securely processing outgoing payments
- ensuring payment systems meet the diverse needs of both the government, and individuals, businesses, and authorised representatives
- supporting efficient management of incoming payments to maintain government revenue streams.
Objectives
The objectives of this content are to:
- create unified, efficient and secure systems that streamline payments across government
- ensure familiarity with best practices in payments, allowing informed decision making on investments in payment solutions
- maximise reuse of existing solutions and minimise risks by drawing on past investments, implementations and lessons learned
- meet compliance with legislation and regulation, government policies and standards, and any national or international agreements relating to payments.
Whole-of-government applicability
The Data and Digital Government Strategy (DDGS) sets a vision for 2030 to deliver simple, secure and connected public services for all people and business, through world class data and digital capabilities.
Suitable handing of payments as a capability supports the DDGS missions of:
- Simple and seamless services: Be digital by design, engage people proactively, and guide them to the services they might need.
- Trusted and secure: Build and maintain trust, engaging transparently and meaningfully on government data collection and use.
The Strategic Plan for Australia’s Payment System outlines the Government’s vision for the sector and highlights key priorities and initiatives. This plan imposes additional obligations on the APS concerning payments.
Policy Elements
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Comply with legislation
An entity must comply with any legislation relevant to its circumstances.
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Understand alignment to payment archetypes
Payment systems can be grouped into archetypes. Alignment to one of the eight architypes listed in the standard will provide a focal point for identification of previous investment and assessment of solution suitability.
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Prioritise standardisation and interoperability
Following standard payment methods or taxonomies allows greater performance and interoperability.
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Ensure security and fraud prevention
Stringent security measures, including encryption, access controls, and monitoring to detect and prevent fraud, are critical to the safeguarding of payments and related data.
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Set payment timelines and prompt payment standards
Clear timelines for processing payments promotes prompt payment to and by individuals and businesses. Entities may establish procedures for expedited processing of payments in emergency situations, where immediate funds are required, such as during natural disasters.
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Ensure, and report on, transparency
Transparency in the payment processes, including clear documentation and communication of payment terms and conditions, is critical to build trust and give confidence in payment recipients.
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Engage stakeholders and consider user experience
Prioritising accessibility, ease of use, and support for multiple payment methods will ensure payment systems are designed with the end-user.
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Prioritise simplicity, sustainability, scalability, and emerging trends
The developing of long-term strategies for the sustainability and scalability of payments solutions will accommodate future growth and technological advancements. Entities should prioritise the simplification of payment processes, with a defined transition strategy to digital payment platforms.
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Adhere to reuse principles
Entities must give priority to the adoption of reuseable digital and ICT solutions, patterns, or knowledge, and, where necessary, design new solutions with a focus on future reuse.