Small Business to get Paid On-Time
Monday, 29 May 2017
Small Business to get paid On-Time
29 May 2017
Federal Member for Flynn, Ken O’Dowd has joined Small Business Minister Michael McCormack today in welcoming the announcement of a code of conduct for big business payment times to small business.
“I have heard from dozens of small businesses across Flynn about how they can
struggle to get their invoices paid on time,” Mr O’Dowd said.
The Business Council of Australia today launched the voluntary ‘Australian
Supplier Payment Code’ with a number of big businesses signing a pledge to pay
their invoices within 30 days and to have payment times publicised.
Having spent his life in small business, Mr O’Dowd said he’s pleased to see the
Business Council’s announcement.
“I know what it’s like to run a small business and wait too long for payment. When you’re trying to pay wages, grow your business and feed your family, you know you can’t be used like a bank, cash-flow is King.” Mr O’Dowd said.
“I am pleased to see industry taking proactive steps to ensure the 16,821 small
businesses in Flynn enjoy reasonable payment terms and are paid on time, and I hope to see more big businesses follow suit.
Mr McCormack said the Government is leading the way with its ‘pay on-time or
pay interest’ policy.
“The Government pays all businesses within 30 days on supplier contracts valued
up to $1 million or we pay interest with 97 per cent of these invoices paid on
time,” Mr McCormack said.
“These numbers are even better for Government contracts under $10,000 which are
paid almost immediately.
“It is only fair and reasonable big businesses pay small businesses within 30
days as well.
“No matter the history, size, or sector of the hundreds of small businesses I
have met, they all tell me the same thing – cash flow is key. Any move industry
can make to improve cash flow for small business is very good news.”
To find out more, search ‘small business’ or visit https://www.business.gov.au/smallbusiness.