Federal Government departments and agencies will be required to pay small business suppliers within 30 days, according to AAP reports. This is nearly half the current payment period.
Small Business Minister, Craig Emerson, said penalties and interest will apply to late payers. “We will legislate for this in due course,” he says.
The move aims to help small business cash flow, especially in the face of another possible rate rise.
Federal departments generally take 56 days to pay suppliers, according to a Dun and Bradstreet analysis for the December quarter.