Have your say on faster payments policy
Small business owners are encouraged to have their say on the NSW Government’s Faster Payment Terms Policy as part of a review flagged in the state’s Economic Recovery Strategy.
Under the Faster Payments Policy, the NSW Government aims to make eligible payments to registered small business suppliers within five business days.
Minister for Finance Damien Tudehope said there had been numerous advances in technology, including the introduction of e‑invoicing and new payment platforms, since the introduction of the Faster Payments Policy in 2018.
“Last year the NSW Government made it easier for businesses to register for faster payments with around 10,000 additional small business automatically registered for the policy,” Mr Tudehope said.
“The review will assess whether the policy remains appropriate, how effective and efficient it has been in meeting its objectives and any opportunities for improvement.
“If small businesses provide feedback on the policy, we can ensure it is working effectively as we move on from the challenges of COVID-19 and plan for a prosperous future.
“If there are any issues, we want to hear about them so we can make improvements if they’re needed and ensure the policy is supporting businesses.”
Minister for Small Business and Fair Trading Eleni Petinos said the policy was designed to create greater certainty around cash flow for small businesses.
“Under the policy, in the September quarter last year 97.5 per cent of payments were made within five business days,” Ms Petinos said.
“Cash flow is a major issue for small businesses, so getting paid on time allows them to cover business expenses such as rent, wages and utilities.
“The NSW Government has taken the lead in ensuring our small businesses are paid quickly.
“This is an important measure and I look forward to hearing suggestions on how we can make further improvements to the policy to support the thousands of small businesses who do work with the NSW Government.”
When the Faster Payments Policy was introduced in December 2018, payments were made by Government to small businesses within 20 calendar days, and that timeframe has since been reduced to five business days.
The review will focus on three key areas:
- Small Business supplier experience;
- Administration and implementation; and
- Technology and related practices
In addition to small business owners, the review will also consult with industry bodies representing small business and government agencies.
For more information, please view the Faster Payments Policy.
You can complete the Have Your Say.