From today, small and family businesses will receive payment for government contracts under $1 million in 20 days.
The Morrison Government is backing the 3.4 million small and family businesses that underpin Australia's economy by ensuring they get paid on time, boosting their cash flow and helping them grow.
We understand the importance of cash flow to small businesses - we know that cash flow is vital to each and every business, that is why we are doing everything we can to ensure businesses are paid on time.
A report from Xero last month found that half of all payments from big to small businesses were late, totalling more than $115 billion a year.
It is clear big business needs to do more to pay contracts on time and we will also continue to look at ways in improving this delay. The Government is working to require large businesses tendering for Commonwealth contracts to match the 20-day payment terms.
Also in development is an annual reporting framework requiring large businesses with over $100 million turnover to publish information on how they pay small businesses.
Our promise to small and family business is clear, we want them to pay less tax, cut red tape and have better access to finance to help grow their businesses.
We will also do more to help small and medium sized business compete for government contracts with our commitment to have 35 per cent of all contracts up to $20 million delivered by small and medium businesses.
Because of our plan 3.4 million small and medium businesses will pay less tax, down to 25 per in 2021-22.
We have cut nearly $6 billion in Commonwealth red tape, while improving the ability of small business to offer employee share schemes and extending small and medium businesses access to the $30,000 instant asset write off.
