201412.27

Small Businesses Paid on Time – Abbott Government Sets 12 Year Standard


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Sunday 28 December 2014: The Abbott Government is the best friend Small Business has ever had. We are a government made up of small business owners, farmers and family enterprise operators. This is why we know how important it is for small business to be able to bank on cash flow that is timely and is reliable.

I am proud to report our Government is ensuring our payments to small business are made on time.

Results from The Australian Government Payments to Small Business survey 2013-14 show the Commonwealth Government paid over 97 per cent of its invoices to small businesses within 30 days.

These are the highest performing results in the survey’s 12 year history.

Steady cash flow is vital for the survival of any small business. That is why our Government takes payment performance seriously. No small business should be left waiting for payment from the Commonwealth.

In contrast to the Government’s payment performance, Dun & Bradstreet reported for the second quarter of 2014 an industry average of 53 days to pay their accounts and 53 per cent of invoices were settled beyond the standard 30-day payment term.

Government entities continue to provide certainty for small business suppliers by implementing a ‘pay on time or pay interest’ election commitment that applies a 30 day payment term.

From 1 July 2014, small businesses received automatic interest payments on government contracts that have not been paid within 30 days. The previous government worked on a 60 day timeframe before interest and penalties applied.

To further assist small business with their cash flow and encourage active participation in Commonwealth procurement, the Government has announced credit cards and debit cards as the preferred method to pay suppliers for amounts below $10,000.

This is just one more was we are working to ensure Commonwealth departments and agencies support small businesses and set an example for Australian businesses and other levels of government.

The 2013-14 Performance Report is available at http://bit.ly/BillsonPayingontime