Payment times to small business suppliers
The Government’s Supplier Pay On-Time or Pay Interest Policy (Pay On-Time policy) facilitates timely payment to suppliers, assists with their cash flow, and reduces the cost to business in supplying to the Commonwealth.
Each year the Government Pay On-Time Survey is conducted and collects information from agencies about their performance against the Pay On-Time policy.
Since 1 July 2014, the Pay On-Time policy has applied to non-corporate Commonwealth entities (‘agencies’) under the Public Governance, Performance and Accountability Act 2013. Previous surveys were conducted to monitor compliance with the Procurement On-Time Payment Policy for Small Business (2012 to 2014) and the Procurement 30 Day Payment Policy for Small Business (2001 to 2012).
The Government is taking the lead on paying bills on time, and from July 2019, has committed to paying all invoices for contracts up to $1 million in 20 days, compared to the current policy and industry norm of 30 days.
Pay on-time survey performance report 2017-2018
This report contains the results of the Government Pay On-Time Survey for the 2017-18 financial year. There has been significant improvement in the proportion of low value invoices paid within 30 days. In 2002, only 82 per cent of invoices for contracts valued at $1 million or less were paid on time; however, results from the 2017- 18 survey indicate that Government agencies are paying almost 97 per cent of low value invoices on time.
Previous on-time survey performance reports
Visit the Treasury website for pay on-time survey results for previous financial years.