Industry support for new supplier payment code
Australia's big businesses improving invoicing processes.
The Australian Supplier Payment Code, introduced earlier this week, has garnered plenty of industry support and major signatories in an effort to improve on-time payments for small business suppliers.
The code, launched by the Business Council of Australia (BCA), advocates signatory companies pay eligible Australian small business suppliers on time and within 30 days of receiving an invoice.
Businesses signed up to the voluntary, industry-led initiative include ANZ, AGL, Citi, CommBank, Energy Australia, HSBC, Lend Lease, IAG, MYOB, NAB, Qantas, Rio Tinto, Telstra, Westpac and more.
Here's a quick summary of the primary commitments outlined in the code:
- Pay small business suppliers within 30 days (subject to conditions)
- Pay all suppliers on time
- Provide clear guidance about payment procedures to suppliers
- Work with suppliers to improve invoicing and payments practices
- A process for resolving payment disputes and complaints
- Basic reporting on company policies and practices in place to comply with the code
Any business can sign up, anytime, and the BCA proffers that in many cases, adherence to the code will more than halve payment times and help improve the viability of Australia's small business community.
The code encourages big businesses to assist smaller counterparts in implementing new technologies and practices to improve invoice and payments systems, productivity, cash flow and free up capital. There's also processes for properly dealing with complaints and disputes regarding payment times.
The BCA will work closely with the Australian small business and family enterprise ombudsman and state-based commissioners to review the progress of the code and make any necessary adjustments.
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