Cash and competition key for small business
Find out what the Australian Government is doing to encourage faster payment times and get help to apply for Government contracts.
International evidence suggests reducing long payment times to small business can make the small to medium enterprise (SME) sector more resilient by improving cash flow and boosting employment and wages.
From 1 July 2019, the Australian Government have mandated a 20 calendar day payment time (reduced from 30 days) for government contracts valued up to $1 million. This measure is designed to alleviate pressure on the cash flow of small businesses contractors so they don’t have to wait as long to be paid.
In addition, a new national large business reporting framework is being developed and will require large businesses with over $100 million in turnover to publish payment information on how they engage with small businesses. Trade between large and small businesses accounts for more than $500 billion annually, and this framework will cover up to 3,000 of the largest businesses in Australia – including foreign companies and government entities.
Have you considered selling to the Australian Government?
The Australian Government is committed to sourcing at least 35 per cent of all contracts (by value) valued up to $20 million from Small and Medium Enterprises. The Australian Government frequently purchases contracts under $200,000 on a wide range of goods and services all across Australia in the following areas:
- engineering and research services
- ICT goods and services
- education and training services
- property management and construction services
- healthcare services
- printing, audio-visual and design services.
Learn more about selling to Government.