The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) this week celebrates two productive years helping small businesses throughout Australia, and has marked the anniversary with an update on a key policy.
“Today we release an updated National Payment Transparency Register, a key deliverable from our 2017 inquiry into payment times and practices. The Payments Register promotes businesses that pay their small business suppliers in less than 30 days,” said ASBFEO Kate Carnell.
“Late payments affect a small business’ cashflow, impacts on business growth and in worst case scenarios, can put a business out of operation. Our Register allows small businesses to measure potential risks before entering supply arrangements with big business.”
Illion’s 4th Quarter 2017 Australian Late Payments report notes that overall, late payment times have reached their lowest level on record. Small business leads the way with micro and small businesses showing reduced year on year payment times of 21 per cent and 17.8 per cent respectively. In comparison there has been a four per cent reduction for large businesses.
“Our payment times inquiry also prompted the introduction of 15-business day payment terms by Federal Government agencies, and compliments the Australian Supplier Code as Register signatories can promote their performance against terms,” said Ms Carnell.
“It has been a particularly busy and successful two years,” she said. “Each time we meet a milestone achievement in assisting dispute resolution or advocacy, a dozen more items are added to our ‘to do’ list.” Among them were:
“Looking ahead, we are determined to bring small business to the front and ensure national policies deliver significant benefits for them,” Ms Carnell said. “Our focus is now on the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, government procurement, access to justice, unfair contract term compliance, a flexible and simplified workplace relations system, franchising and phoenixing.”