May 29, 2017
A voluntary code of conduct launched by the Business Council of Australia to speed up payments by big businesses to smaller ones has been welcomed by Federal Member for Flynn Ken O’Dowd.
“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.
On Monday, the Business Council of Australia launched a 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,” Mr O’Dowd said.
“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.
“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.”
Small Business Minister Michael McCormack said the Government was already 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.”
More information is available online.
