The Australian Small Business and Family Enterprise Ombudsman, Kate Carnell today welcomed the call by One Nation to legislate a mandatory payment system to ensure small businesses were paid within “30 days from the end of the month … unless agreed at the outset of the contract”.
“Our 2017 Payment Times and Practices Inquiry report recommended the Australian government legislate a maximum payment time for all business to business transactions,” Ms Carnell said.
“We recommended mandating an appropriate upper limit on payment times in Australia, with terms greater than this having to be agreed by both parties to meet specific industry needs.
“Following this inquiry, the Business Council of Australia established the Australian Supplier Payment Code to improve payment times for small businesses.
“However, this voluntary measure has not been entirely effective and is currently under review by an independent panel of experts.
“The Australian government’s recent announcement on payment times provided a positive end to 2018, ensuring large businesses pay small to medium enterprises within 20 days as a condition of future government contracts and those with $100 million turnover publish their payment times in their annual report.
“Cash flow is king to small business and late payments can be the difference between success and insolvency.
“Policies like One Nation’s Timely Payment will stamp out unfair payment practices so small businesses can reach their full potential, and in doing so, continue to contribute to our national economy.”
