The Federal Government has introduced a stringent payment regime obliging state agencies to pay small business creditors within 30 days, or they’ll face penalties for late payment.
Payments for outstanding accounts are to be made by Government agencies within 30 calendar days or they will face paying penalty interest on the outstanding debt, with State Owned Corporations encourages to adopt the new payment regime.
The interest rate is determined under the Taxation Administration Act 1996, available from the NSW Office of State Revenue.
Agencies have been directed to post their payment performance on the Department of Finance and Services website, and the Auditor-General will conduct a compliance review to ensure the on-time payment policy is adhered to.
The payment policy will be effective immediately. The transition period for the 30-day Payment Policy is expected to apply for six months from 1 July 2011 to allow agencies to make appropriate administrative arrangements to ensure that all bills from small business are paid on time.
Any disputes or complaints should first be raised with the agency’s accounts complaints officer.
If the issue cannot be resolved, the debtor can refer the issue to the recently appointed Small Business Commissioner.
