Small businesses in Riverina and Central West to flourish under new conditions, says McCormack
THE Nationals’ Member for Riverina Michael McCormack has lauded changes to the Government’s payment policy, saying small businesses in the Riverina and Central West will benefit from the announcement.
Mr McCormack said the Liberal and Nationals’ Government will now be required to pay invoices for contracts worth up to $1 million within 20 calendar days, instead of the current benchmark of 30 days which will help increase cash flow for small businesses.
“Local contractors involved in the almost $1 billion investment through to 2036 at the Army Recruitment Training Centre at Kapooka and RAAF Base Wagga Wagga will enjoy faster payment times as they work to upgrade the two defence bases,” the Small Business Minister said.
“This is good news for small business.”
Mr McCormack said the Government had thrown down the gauntlet to big businesses to follow its lead.
“The Government has set the standard for big business to follow,” he said.
“Cash flow is crucial in allowing small businesses to thrive – they should not be used as a bank.
“We are leading the way and big business should do the same.”
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.
The Government will also take action requiring its agencies and entities to publish their payment time performance. This will significantly increase the level of transparency and accountability and ensure agencies meet their obligations with Government payment policies.
Mr McCormack said he has heard from hundreds of small businesses about a range of issues and payment times are a real concern for many of Australia’s small businesses.
“Having run my own small business and waited at times for many months to be paid for work already completed, I understand how frustrating and how burdensome late payments can be,” Mr McCormack said.
“This is a great outcome for small business and I hope it will set an example to industry and to other levels of government to come on board with faster payment times.”
The Liberals and National’s Government will mandate that by July, 2019, all non-corporate Commonwealth entities are to pay invoices for contracts up to $1 million within 20 calendar days on receipt of a correctly rendered invoice.
This announcement builds on the Government’s strong small business agenda. The Coalition Government understands small businesses are the backbone of the economy and is backing small business through:
· The Instant Asset Write-off that means small businesses in the Riverina and Central West can instantly deduct each and every asset under $20,000.
· Cutting taxes for small businesses to the lowest rate since 1940.
· Landmark export agreements with China, Japan and South Korea that are opening up new opportunities for businesses in the Riverina and Central West.
· The abolition of $5.8 billion worth of red tape. This includes introducing: simplifying Business Activity Statements; a Small Business Superannuation Clearing House; and hundreds of other decisions that are making life easier.
The full response is available at https://treasury.gov.au/publication/australian-government-pay-on-time-survey-performance-report/