The Morrison Government has increased transparency and choice for Australian small businesses today launching its Payment Times Reports Register. The Register publishes the time it takes for large businesses and certain government entities to pay their small business suppliers.
Minister for Employment, Workforce, Skills, Small and Family Business, Stuart Robert, said the Payment Times Reports Register strengthened accountability and increased transparency to ensure timely payments are being made to Australian small business suppliers.
‘As a former business owner-operator myself, I understand the vital importance of cash flow for small businesses and according to Xero the value of late payments to small businesses is estimated at $115 billion each year, this is a big deal,’ Minister Robert said.
‘Our Payment Times Reports Register will empower small businesses with the ability to see who is paying on time and who isn’t- another way the Morrison Government is making the lives of small businesses easier.’
Over 75 per cent of reporting entities make payments to small businesses. Industries with highest procurement from small business include: Agriculture, Forestry and Fishing; Construction; and Administrative and Support Services, all with over 40 per cent procurement from small business.
Industries with the lowest procurement from small business include: Mining; Retail Trade; Public Administration and Safety; and Wholesale Trade has the lowest procurement from small business, all with less than 25 per cent.
Across all reporting entities, average payment term for small business is 37.27 days (i.e. the average term offered in contracts to small businesses). Manufacturing offers the longest average standard payment terms at 48.62 days and Public Administration and Safety has the lowest at 24.06 days.
Across all industries 44 per cent of small business invoices are paid within 20 days, with less than 3 per cent being paid after 90 days or more.
The Payment Times Reports Register and further information is available on the Payment Times Reporting Scheme website.