Proposed Payment Terms for Small Business Suppliers
The government has moved forward to introduce a 15-business-day payment term for small business suppliers following pressure from the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) to introduce legislation that will set a maximum payment time for big businesses to pay their small business suppliers.
Earlier this year, the ASBFEO released its report, Payment Times and Practices Inquiry, putting forward a recommendation for the government to adopt the 15-business-day payment time by July 2018. The report found that late payments have been a perennial problem for businesses in Australia, with 26.4 days being the national average before payments were made.
ASBFEO Kate Carnell welcomed the government's decision to push forward with introducing shorter payment times. "This is a game changer for small businesses and family enterprises that provide goods and services to the government," Ms Carnell said. It will save money on interest payments, boost confidence and free up capital for reinvestment."
View the full article on the Accountants Daily website.
* * * *
This Newsletter, of necessity, has dealt with matters of a technical nature in general terms only. Clients should contact us for detailed information on any of the items in the Newsletter. No responsibility for loss occasioned to any person acting or refraining from acting in reliance upon any material in this Newsletter can be accepted by any member or employee of the firm.