I want to improve my cash flow
For many small businesses, managing cash flow is one of the biggest challenges. The Australian Government has new policies designed to improve cash flow, including helping small businesses compete for Government contracts and ensuring small businesses get paid on time.
Make selling to Government your business
Are you looking to grow your business? Have you thought about selling to the Australian Government? The Australian Government purchases a wide range of goods and services all across Australia and the vast majority of contracts are valued under $200,000.
The Government is committed to sourcing at least 35 per cent of all contracts (by value) valued up to $20 million from Small and Medium Enterprises.
Frequently purchased goods and services include:
- management and business professional services
- engineering and research services
- ICT goods and services
- education and training services
- property management and construction services
- healthcare services
- printing, audio-visual and design services.
Government and big business to pay small business on time
It’s important that small businesses are paid on time. The Australian Government has introduced a mandated 20 calendar day payment time (reduced from 30 days) for government contracts valued up to $1 million, effective from 1 July 2019.
Further, the Government is working to develop an annual reporting framework that requires businesses with over $100 million turnover to publish payment information on how they pay small businesses. It will cover 3,000 of the largest businesses in Australia including foreign companies and government entities.
Find out more about the Payment Times Reporting Framework