- Faster Payment Registration
- Supporting Business
- Speaking Up
- Solving Problems
The NSW Government has committed to faster payments. Payments up to $10,000 will now be paid instantly by credit card. Registered small businesses that supply to in-scope government departments will also be paid within 20 calendar days of central payment departments receiving a correctly rendered invoice for goods or services provided for between $10,000 and $1 million. Faster payments will be in place by the end of 2018.
This policy specifies the government’s payment of accounts policy effective from 1 December 2018, for agencies to pay registered small business suppliers for goods and services within 20 days unless an alternative period is provided. The main changes compared to the previous1 payment of accounts policy are:
Cash flow has always been a major issue for small businesses. A third of small businesses say late payments have affected their personal finances and their ability to cover basic expenses like rent, wages and utilities.
The policy applies to an ‘authority’, which includes departments and statutory authorities, other than statutory State Owned Corporations and all accounting officers and officers of an authority. Notwithstanding this, statutory State Owned Corporations are encouraged to apply this policy.
In-scope agencies will be required to:
As part of this Policy, agencies must ensure small business suppliers are aware that:
Agencies may continue to pay interest on late accounts, if included in the agency’s supplier payment policy.
The Faster Payment Terms Policy should be integrated with agencies’ broader supplier payment policies. The NSW Small Business Commissioner is authorised to exclude categories of government expenditure and some areas of government from this Policy. These exclusions will be reviewed regularly and published on this website.
This Policy is being introduced to assist small businesses. It contains ambitious targets, well ahead of contemporary business-to-business practices in Australia. Eligible small businesses can benefit from this Policy by adopting electronic invoicing practices, including EFTPOS facilities.
It is not compulsory for small businesses to register under this Policy, and agencies are not required to pay all small business within the Policy timeframes if the business does not comply with the agency’s invoicing requirements. Small businesses which elect not to register, or continue to submit paper-based invoices, will be processed in accordance with an agency’s general supplier payment policy.
Suppliers can register using our online form, which replaces the multiple cluster-specific registration processes. If a small business registers under this Policy, it may take up to six weeks to advise all agencies in order to benefit from registration.
The NSW Small Business Commissioner will publish online information about this Policy for small business. Agencies should inform their small business suppliers about this information and adopt policies and procedures consistent with the published information. Agencies should also ensure that staff are informed about this Policy and how it will assist small business suppliers.
The NSW Small Business Commissioner will issue a list of registered small businesses to agencies at least quarterly. To avoid potential confusion where staff are using PCards, all expenditure using PCards will be treated as eligible expenditure under this Policy.
Agencies are required to submit the data required to prepare these reports so that the NSW Small Business Commissioner, Financial Leadership Committee and the NSW Procurement Board can be informed of performance and implementation issues in a timely and accurate manner. These reports will be produced by Department of Finance, Services and Innovation and published on this website.
Under this policy:
Issuing Entity – NSW Small Business Commissioner, as endorsed by Cabinet on 24 May 2018.
Publishing Entity – NSW Small Business Commissioner
Replaced by – This document is not replaced by any later document.
Replaces – TC11/12 Payment of Accounts
Compliance with this policy is mandatory
 The Faster Payment Terms Policy replaces the NSW Government’s 30 Days to Pay Policy published in NSW Treasury Circular 11/12 Payment of Accounts from 1 December 2018.
Download the Faster Payment Terms Policy.
If you have any questions about the Faster Payment Terms Policy contact us by phone 1300 795 534 or 02 8222 4800, or email firstname.lastname@example.org.