Small businesses providing goods and services to Government will have their invoices paid faster.
Ann Sudmalis MP said the Government will now be required to pay invoices for contracts worth up to $1 million within 20 calendar days, an improvement from the current policy of 30 days.
“This will put money back in the pockets of small business, helping them to invest, grow our local economy, create jobs and employ more workers,” she said.
“Small business is the engine room of our local economy, and we are taking action to change the payment culture in Australia and make sure small businesses are not be used as a bank.”
The Australian Government is already a proud leader in terms of payment times and practices, with the latest Pay On-Time survey showing Commonwealth agencies paid 97 per cent of their invoices within 30 days.
This announcement builds on the Government’s strong small business agenda. The Coalition Government understands small businesses are the backbone of our economy and we are backing small business through:
- Our Instant Asset Write-off that means small businesses in Gilmore can instantly deduct each and every asset under $20,000.
- Cutting taxes for small businesses to the lowest rate in 50 years.
- Landmark export agreements with China, Japan and South Korea that are opening up new opportunities
- Stopping the $5.8 billion worth of red tape. The full response is available at https://treasury.gov.au/publication/australian-government-pay-on-time-survey-performance-report/