Australian Supplier Payment Code
The Australian Supplier Payment Code is a voluntary, industry-led initiative that enshrines the importance of prompt and on-time payment for small business suppliers through compliance with a set of best-practice standards.
The Code commits signatory organisations to pay eligible Australian small business suppliers on-time and within 30 days of receiving a correct invoice, and to help suppliers implement new technologies and practices to speed up invoicing. In some cases this will more than halve payment times and help improve the viability and vitality of small business and enhance the ability of business to create jobs.
The code is at the centre of a new age of co-operation and mutual respect between businesses – big and small. It was launched in today by Business Council chief executive Jennifer Westacott and has been endorsed by the Council of Small Business Australia and the Victorian State Government.
Any business, not-for-profit or government entity can sign up to the code at any time.
The code is not just about paying small business bills within 30 days of receiving a correct invoice. It also obliges big businesses to give a helping hand to smaller ones to implement new technologies and practices to improve their systems to have more efficient and faster invoicing and payment. The code also requires purchasers to pay on time and includes a clear and fair process for dealing with complaints and disputes about payment times.
No business exists in isolation and everyone benefits when the nation has a viable and productive small business supplier base.
Trade between small, medium and large businesses totals more than $550 billion a year. Improving payment times will improve productivity and help ease the stress for small business owners. Healthy cash flows and working capital are crucial to the viability of a business and its ability to expand and create jobs.
A voluntary, industry-led effort to drive change in payments culture and practices should be given time to work before any consideration of regulation, which would impose extra costs on all business and taxpayers. We need a culture of cooperation, not compliance.
The Business Council will work with the Australian Small Business and Family Enterprise Ombudsman and State-based Commissioners to regularly review the progress of the code.
The Code was first proposed by the Business Council in its submission to the Australian Small Business and Family Enterprise Ombudsman's Inquiry into Payment Times and Practices.
In summary, signatories to the Code commit to:
- Pay small business suppliers within 30 days (subject to conditions)
- Pay all suppliers on time
- Provide clear guidance about payment procedures to suppliers
- Work with suppliers to improve invoicing and payments practices
- A process for resolving payment disputes and complaints (see link to guidance note)
- Basic reporting on company policies and practices in place to comply with the Code.
The Business Council Secretariat contact for the Code is Jared Owens, Director Media, on 0418 824 111.
If your organisation would like to sign up to the Code, let us know at email@example.com.
BUSINESS COUNCIL MEMBER SIGNATORIES
NON-BUSINESS COUNCIL MEMBER SIGNATORIES