Goverment To Pay Its Small Business Bills Faster
24th Nov 17
Responding to advocacy by the Australian Dental Industry Association (ADIA) and other industry associations, the Australian Government has announced that for contracts worth up to $1 million it will pay invoices within twenty days, significantly improving small business cashflow.
Key Issues For The Dental Industry —
For some years the ADIA has encouraged the Australian Government to support small businesses through the timely payment of invoices to the government. As a result of continued advocacy by ADIA that has been working alongside other industry associations, the Australian Government has committed to paying invoices for contracts worth up to $1 million within twenty calendar days.
The change will come into effect by July 2019 where all non‑corporate Australian Government entities are to pay all invoices for contracts up to $1 million within twenty calendar days (equivalent to fifteen business days) on receipt of a correctly rendered invoice. This will capture approximately 95% of procurement contracts entered into by the Commonwealth. In addition, the payment of interest on late payment policy which applies to payments over thirty days for contracts up to $1 million will be adjusted to twenty calendar days starting from July 2019 to complement the new payment policy.
As part of its advocacy efforts ADIA, had raised the issue of Australian Government payments to small business with the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) which released a report into payment times and practices in Australia. The Australian Government’s response accepted the recommendations with regards to payment and the full document can be downloaded below:
The ADIA Chief Executive Officer was with the Prime Minister and the Small Business Minister in parliament house on 22 November 2017 when the announcement was made at a business roundtable convened by the Australian Chamber of Commerce and Industry.
This policy outcome demonstrates what can be achieved when member businesses advise ADIA of the issues that affect their ability to grow, create jobs and operate sustainably. Through forums such as the ADIA Reference Group – Government procurement members come together to provide advice and guidance to the team within ADIA’s national office who then negotiate outcomes with parliamentary and departmental stakeholders.
The Australian Government’s announcement also highlights the importance of ADIA’s links to the Australian Chamber of Commerce and Industry which uses advice from ADIA and other industry associations as part of its policy activities with government.
Currency & Disclaimer —
On matters associated with government tendering and procurement the team within the ADIA National Office are supported by members serving on the ADIA Reference Group - Government tendering.
Currency & Disclaimer —
This update was issued on 24 November 2017 and please note that changes in circumstances after the publication of material or information may impact upon its accuracy and also change regulatory compliance obligations. The statements, regulatory and technical information contained herein are believed to be accurate and are provided for information purposes only. Readers are responsible for assessing its relevance and verifying the accuracy of the content. To the fullest extent permitted by law, ADIA will not be liable for any loss, damage, cost or expense incurred in relation to or arising as a result of relying on the information presented here.
This publication is available for your use under a Creative Commons Attribution 3.0 Australia licence, with the exception of the ADIA logo, other images and where otherwise stated.
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