New rules aim to speed up payment times for small businesses.
New requirements for government agencies to pay invoices faster and adopt labour-saving technology have been introduced by Small Business and Manufacturing Minister Andrew Bayly and Economic Development Minister Melissa Lee. The move is part of the government's plan to rebuild the economy and support small businesses.
The 33 central government agencies send and receive over 1.6 million invoices annually, with a total for all 135 government agencies likely many more millions. Prompt payment is crucial for small businesses, which have limited cash reserves. The new rules will require agencies to pay at least 90% of domestic invoices within 10 business days by January 2025 and 95% from January 2026.
The introduction of eInvoicing, a digital invoicing system, is also expected to bring significant productivity gains, with estimates suggesting it could generate savings of $4.4 billion over the next decade. From January 2026, agencies that send or receive more than 2,000 domestic invoices a year will be required to have eInvoicing systems in place.
The government hopes these changes will help move money faster around the economy and drive productivity improvements. A wider review of the Government Procurement Rules is currently underway, with recommendations expected in 2025.