Government Faster Payment Commitment Welcomed

By Australian Dental Industry Association, 23 November, 2017

The decision of the Australian Government to ensure that businesses providing goods and services to it receive faster payments has been welcomed by the Australian Dental Industry Association (ADIA), the peak business organisation representing dental product manufacturers and suppliers.

In a major win for the 6,800 small businesses that work with the Australian Government, invoices for contracts worth up to $1 million will be paid within twenty calendar days.

“Many ADIA member businesses provide products to the Australian Government and this decision will improve the dental industry’s cash flow, allowing these businesses to grow, create jobs and operate sustainably,” said Troy Williams, ADIA Chief Executive Officer.

The ADIA Chief Executive Officer was with the Prime Minister today in parliament house when the announcement was made at a business roundtable convened by the Australian Chamber of Commerce and Industry.

“ADIA also welcomes the commitment that Australian Government agencies will be required to publish their payment time performance, something that provides a significant degree of transparency and accountability,” Mr Williams said.

The issue of the Australian Government being a late payer has been an ongoing advocacy issue for ADIA which it has raised at a Ministerial level and with the Australian Small Business and Family Enterprise Ombudsman (ASBFEO).

The policy shift comes in response to the ASBFEO Inquiry into Payment Times and Practices in Australia. In the formal response the Australian Government has stated that by July 2019 all non‑corporate Commonwealth entities (NCCEs) are to pay all invoices for contracts up to $1 million within twenty calendar days (equivalent to fifteen business days) on receipt of a correctly rendered invoice. This will capture approximately 95% of procurement contracts entered into by the Commonwealth, requiring invoices for these contracts to be paid in twenty calendar days or less.

Source: Australian Dental Industry Association