The Government is committed to ensuring suppliers operating in the supply chains of Australian Government procurement contracts are not left waiting for payments from large businesses.
The Payment Times Procurement Connected Policy (PT PCP) will leverage approximately 100 Commonwealth government agencies’ purchasing to improve payment times to suppliers in government contracts supply chains.
From 1 October 2021, large businesses (annual income of over $100 million) awarded government contracts of over $4 million will be required to pay their new subcontracts (up to $1 million) within 20 calendar days. Late payments of invoices in scope will incur interest penalties. The policy complements the Government Supplier Pay on Time or Pay Interest Policy.