What do you think of the Faster Payments Terms Policy? It’s time to have your say

- February 16, 2022 2 MIN READ
payment times

If you’re a small business owner working for the NSW government, it’s time to have your say on the effectiveness of the Faster Payments Term Policy.

The policy, which came into effect in 2018, changed the payment terms for small businesses working with government agencies from 20 days down to five.

With a review of the policy now in place, small business owners are encouraged to speak up as the state plans its Economic Recovery Strategy.

Under the Faster Payments Policy, the NSW Government aims to make eligible payments to registered small business suppliers within five business days. The change to payment terms has been made possible thanks to advances in technology including the introduction of e-invoicing and new payment platforms.

The Minister for Finance, Damien Tudehope, said thousands of businesses are already taking advantage of faster payment times since the introduction of the policy.

“Last year the NSW Government made it easier for businesses to register for faster payments, with around 10,000 additional small business automatically registered for the policy,” Tudehope said.

“The review will assess whether the policy remains appropriate, how effective and efficient it has been in meeting its objectives, and any opportunities for improvement.”

Feedback from businesses needed

The minister said further feedback was needed from business owners to judge the effectiveness of the payment terms policy in a COVID-19 environment.

“If small businesses provide feedback on the policy, we can ensure it is working effectively as we move on from the challenges of COVID-19 and plan for a prosperous future.

“If there are any issues, we want to hear about them so we can make improvements if they’re needed, and ensure the policy is supporting businesses.”

Fast payments to ease cash flow issues

Minister for Small Business and Fair Trading, Eleni Petinos, said the policy was designed to create greater certainty around cash flow for small businesses.

“Under the policy, in the September quarter last year 97.5 per cent of payments were made within five business days,” Petinos said.

“Cash flow is a major issue for small businesses, so getting paid on time allows them to cover business expenses such as rent, wages and utilities. The NSW Government has taken the lead in ensuring our small businesses are paid quickly.”

The review will focus on three key areas:

  • Small Business supplier experience
  • Administration and implementation
  • Technology and related practices

In addition to small business owners, the review will also consult with industry bodies representing small business and government agencies.

To complete the Have Your Say survey, go here.

This post originally appeared on Kochies Business Builders. You can read the original here

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