Small and family businesses in O’Connor will now receive payment for government contracts under $1 million in 20 days.
Federal Member for O’Connor Rick Wilson said the Morrison Government is backing the 3.4 million small and family businesses that underpin Australia’s economy by ensuring they get paid on time, boosting their cash flow and helping them grow.
“We understand the importance of cash flow to small businesses – cash flow is vital to each and every business. That is why we are doing everything we can to ensure businesses are paid on time,” Mr Wilson said.
A report from Xero last month found half of all payments from big to small businesses were late, totalling more than $115 billion a year.
“It is clear big business needs to do more to pay contracts on time and we will also continue to look at ways to improve this delay,” Mr Wilson said.
“The Government is working to require large businesses tendering for Commonwealth contracts to match the 20-day payment terms.
“Also in development is an annual reporting framework requiring large businesses with over $100 million turnover to publish information on how they pay small businesses.
“Our promise to small and family businesses is clear, we want them to pay less tax, cut red tape and have better access to finance to help grow their businesses.”