Government takes action to ensure Durack small businesses get paid on time
December 7, 2018
The Federal Government is taking action to ensure small businesses in the Durack electorate get paid on time.
Federal Member for Durack and Minister for the Environment Melissa Price said small businesses shouldn’t have to wait months and months to be paid for work already completed.
“Cash flow is crucial to the prosperity and health of any business,” she said.
“Not being paid on time can have a negative impact on competitiveness; increase the cost of doing business and places significant stress on small business.
“They deserve to know that the businesses they engage with are paying on time so that they can get on with their business,” she said.
A new Annual Reporting Framework will cover 3,000 of the largest businesses in Australia, including foreign companies and government entities.
The Federal Government will require large businesses with turnovers above $100 million to publicly reveal how quickly they pay small businesses for their services.
“This will enable small businesses in Durack to engage with large companies with greater confidence,” said Minister Price, “they’ll know when the money will come through the door.”
Trade between small, medium and large businesses totals more than $550 billion a year and the Framework will make this trade both easier and stronger.
The Federal Government is going to lead by example.
“By 1 July 2019 we are committed to reduce the time the Government pays invoices worth under $1 million from 30 days to just 20 days,” Minister Price said.
“We will also require large businesses seeking to tender for government contracts to match this policy.
“We will also do more to help small and medium sized business compete for government contracts with a new commitment to have 35 per cent of all contracts up to $20 million delivered by small businesses.”
These latest initiatives build on the suite of actions that back Durack small businesses, including:
- Accelerating tax cuts for 3.3 million small and medium businesses, employing 7 million, down to 25 percent in 2021-22.
- Extending the $20,000 instant asset write off.
- Lowering the cost of funding for smaller banks and non-banks with a $2 billion fund, meaning cheaper loans for small and family businesses.
- Improving the ability of small business to offer employee share schemes.