The Department of Employment, Skills, Small and Family business is inviting small and large business owners to have their say on the final design of a new scheme designed to improve payment times for small businesses.
Cash flow is important to the prosperity and health of any business, particularly a small business. Unreasonable payment terms between businesses increase the cost of doing business and constrain the ability of business owners to invest and grow their business.
Recent reports show that late payments from large businesses to small and medium sized businesses are around $115 billion each year, with $7 billion owed at any time.
Making $7 billion in capital available to small business and medium sized businesses would deliver a net economic benefit to Australia of $2.54 billion over 10 years.
To establish a better payment culture in Australia, the Government is designing and implementing a new Payment Times Reporting Framework.
The framework will improve payment time transparency by requiring Australia’s 2,500 largest businesses to publish how and when they pay their small business suppliers and contractors.
Australian businesses with an annual turnover of $100 million, including foreign companies and government entities, will be covered by the scheme.
Business owners – and anyone else interested – are invited to provide feedback on the final framework design by:
- Lodging a written submission to the discussion paper by 2 December to PaymentTimes@employment.gov.au.
- Registering to attend a consultation workshop in Perth (15 November) or Sydney (26 November) by contacting PaymentTimes@employment.gov.au.