Keeping the cash flowing for small business
THE Turnbull Government continues to lead the way for paying small businesses on time with the release of the Pay On-Time Survey which shows Government agencies paid 96 per cent of their invoices within 30 days, Minister for Small Business Michael McCormack says.
Minister for Small Business Michael McCormack said the results were very positive and a great outcome for the 6,800 small businesses which have contracts with the Australian Government.
“I am thrilled almost 60 per cent of invoices up to $1 million are being paid within 20 days, smashing the required payment terms by around a third,” Mr McCormack said.
“Having owned and operated my own small business I know how important it is to be paid on time - cash flow is king.
“The Government is leading the way for payment culture in Australia and this is a marked improvement from 2002 when only 82 per cent of invoices were paid on time.”
Mr McCormack said as well as the 30 day time frame the survey now measures performance in terms of invoices under $1 million paid within 20 days – to benchmark results of the Government’s recently announced 20 day payment terms for all business.
“Government agencies are more often than not achieving the Government’s 20 day payment terms for contracts up to $1 million which will come into effect from 1 July 2019,” Mr McCormack said.
“Our new payment terms will set an example to industry and for other levels of government to follow our lead and establishes a culture where small business should not be used as a bank.
“We are delivering the right policy settings to see small business thrive and keep the cash flowing which keeps our economy humming along.
“Only the Turnbull Government understands small business and we are backing them in spades - cutting taxes, slashing red tape, simplifying GST reporting and levelling the big business to small business playing field so the sector can grow, expand and create local jobs.”
The results of the 2017 Survey are available online.