The Federal Government will move to introduce 15-business-day payment terms for small business suppliers.
The government announced the plan this week in its response to the Australian Small Business and Family Enterprise Ombudsman’s April 2017 Inquiry into Payment Terms and Practices.
The report found that late payments have been a perennial problem for businesses in Australia.
Ombudsman Kate Carnell said the government’s response showed leadership and a willingness to lead by example.
“Cash flow is king for small business and this will make a huge difference,” she said.
“It will save money on interest payments, boost confidence and free up capital for reinvestment.”
Ms Carnell said she hoped the Federal Government’s initiative would inspire similar responses from states and big business.
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