Fencing businesses with Commonwealth government contracts will have to pay their small business sub-contractors within 20 days or risk fines and penalties under new laws.
Australian Small Business and Family Enterprise Ombudsman, Bruce Billson says, “Fair payment times are incredibly important for the viability of small businesses, and I welcome the beginning of this significant policy.”
Under the Payment Times Procurement Connected Policy introduced by the Federal Government, large businesses with Commonwealth government contracts of over $4 million are required to pay their small business sub-contractors of up to $1 million within 20 calendar days or pay interest.
Importantly, they must also take reasonable endeavours to ensure smaller businesses throughout the supply chain of their contract are paid on time by other sub-contractors.
Under this policy, where disputes arise, small and family businesses will now be able to lodge a complaint through the Treasury at ptpcp@treasury.gov.au
