The review of the policy is part of the state’s Economic Recovery Strategy, and aims to make eligible payments to registered small-business suppliers within five business days and will assess whether the policy remains appropriate, how effective and efficient it has been in meeting its objectives and any opportunities for improvement.
Minister for Finance Damien Tudehope said there had been numerous advances in technology, including the introduction of e‑invoicing and new payment platforms, since the introduction of the Faster Payments Policy in 2018.
When the Faster Payments Policy was introduced in December 2018, payments were made by government to small businesses within 20 calendar days, and that time frame has since been reduced to five business days.
Since last year, around 10,000 new small businesses have registered as part of the scheme.
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 businesses and government agencies.
“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,” Mr Tudehope said.
“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.”
The 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,” Ms 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.”
