This report assesses the performance of the Australian Government against the Supplier Pay On‑Time or Pay Interest Policy over the 2021-22 financial year. It is informed by the Pay On‑Time Survey undertaken by Treasury.
Up until 1 July 2022, the Supplier Pay On‑Time or Pay Interest Policy required that Australian Government agencies pay invoices for contracts valued up to $1 million within 20 calendar days, or within 5 days for eInvoices. Late payments incur interest.
Over the reporting period, the payment performance of Australian Government agencies has improved, with 96 per cent of invoices for contracts valued up to $1 million (by number) paid within 20 days, as compared to 93 per cent in the 2020-21 financial year.
The number of Australian Government agencies that are eInvoicing‑enabled has increased, from 29 in the 2020-21 financial year to 71 in the 2021-22 financial year.
Since 1 July 2022, the Supplier Pay On-Time or Pay Interest Policy has applied to all government procurement regardless of contract value (the $1 million threshold is removed).
For more information see the Department of Finance’s Pay On‑Time or Pay Interest Policy.