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Greens introducing small business payments legislation

By Administrator | 5 June 2017

Pressure over the crippling impact of payment times on small businesses is growing, with the Greens set to introduce legislation enforcing prompt payments.

On Friday, the Greens will announce the introduction of legislation requiring payment within 30 days to small businesses where a contract is entered into between a business with $10 million or less annual turnover and a big business of $25 million or more annual turnover, or a government agency.

A prompt payment is one made within 30 days unless there is a specific 'unforced' agreement operating between the small business provider and the large business or government customer.

Statutory penalties will apply at 30 days past the date on which goods or services were provided, or date on which the invoice was received, whichever is later, and further penalties will apply if the invoice remains unpaid.

The need for legislation


Greens senator Nick McKim says legislation is required because payment times by Australian corporations are by far the worst in the developed world.

"Big corporations and governments are treating smaller operators like piggy banks," he says. Read more
Cara Waters - Sydney Morning Herald - 2 June 2017

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