Small businesses on the Mid North Coast providing goods and services to Government will have their invoices paid faster following a recent announcement by the Coalition Government.
Nationals Member for Cowper said the Government will now be required to pay invoices for contracts worth up to $1 million within 20 calendar days, an improvement from the current policy of 30 days.
“This will put money back in the pockets of small business, helping them to invest, grow our local economy, create jobs and employ more workers,” Mr Hartsuyker said.
“It is a major win for the small businesses on the Mid North Coast that have contracts with the Federal Government and demonstrates our commitment to these hard-working Australians.
“Small business is the engine room of our local economy, and we are taking action to change the payment culture in Australia and ensure small businesses are not be used as a bank.”
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 consistent with Government payment policies.
Minister for Small Business Michael 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.”
This announcement builds on the Government’s strong small business agenda. The Coalition Government understands small businesses are the backbone of our economy and we are backing small business through:
• Our Instant Asset Write-off that means small businesses on the Mid North Coast can instantly deduct each and every asset under $20,000.
• Cutting taxes for small businesses to the lowest rate in 50 years.
• Landmark export agreements with China, Japan and South Korea that are opening up new opportunities for businesses on the Mid North Coast.
• 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.