This is the Business Council of Australia’s submission to the Australian Small Business and Family Enterprise Ombudsman’s inquiry into payment times and practices.
The inquiry was set up to examine concerns raised with the Ombudsman by small business suppliers about the timeliness of payments by larger businesses.
Key Recommendations
The Ombudsman and industry should:
- raise awareness of the harmful impacts on small businesses when payment periods are extended or payments are late without justification, and
- promote prompt and on-time payment (by businesses of all sizes and governments) to small business suppliers.
The Ombudsman, the Business Council and other industry groups should work together to develop a voluntary industry code for prompt and on-time payments to small business suppliers and to promote industry-led small business procurement policies.
Any new voluntary code and associated policies should be reviewed for their effectiveness within 12 months of commencement.
Media Release: Business Council Announces New Code To Speed Up Payments To Small Business Suppliers