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Faster Payment FAQs

What is the Faster Payment Terms Policy?

Cash flow has always been a major issue for small businesses — they don’t have the same access to capital as big 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 NSW Government has committed registered small businesses that supply to in-scope government departments will be paid within 5 business days of receiving a correctly rendered invoice for goods or services provided between $10,000 and $1 million. 

Payments up to $10,000 can be paid instantly by PCard.

Faster Payment Terms Policy

How is 'small business' defined under this policy?

A small business is an Australian or New Zealand-based firm that has less than 20 full time employees (or full time equivalent).

Why do I need to register as a small business?

As systems become more automated, by providing your status as a small business this can be linked this to your ABN so when you send in a correctly rendered invoice, the system will know your invoice needs to be paid in 5 business days. Without registering, it is impossible for the system to know you are a small business.

How do I register as a small business?

Registration is fast and easy. Visit the buy.nsw supplier portal to quickly enter your details and become registered. This registration will be made available to all government departments, so you will only need to register once for the whole of government.

If you need help with registering for Faster Payments, contact buy.nsw on 1800 679 289 or e-mail

Can I agree to payment terms shorter or longer than 5 days?

Contractual payment terms shorter than 5 days are permitted, if agreed to by a small business and a government agency. However, contractual payment terms longer than 5 days, if agreed to by a small business and a government agency, are permitted only if the nature of the goods and services or the structure of the purchase make it impractical to require payment within 5 days.

What happens if I’m not paid within 5 days?

Government departments are required to comply with this policy and whole of government performance will be monitored. While mandated interest payments are not part of this policy – departments are advised to take note of the impact of late payments to small business and use their discretion to pay interest to significantly late small business payments.

Why do I need a purchase order from a government agency?

Purchase orders are issued by NSW Government agencies to make sure requests for goods and services are approved, and to meet their own legal, record keeping and monitoring requirements. A purchase order also helps you as a small business, so you know when you are supplying goods or services to an agency that payment has been approved by an appropriate person, and that funding will be available to pay your invoice.

You should always ask for a purchase order before you provide goods or services to a government agency and make sure the purchase order number is recorded on your invoice.

However, if you supply goods and services less $10,000 than you may be eligible to be paid by PCard, in which case you will not need to ask for a purchase order — see below for more information on getting paid by PCard.

Are there any exclusions?

The policy applies to eligible small businesses supplying to in scope-government departments for goods or services up the value of $1 million.

The following expenditure categories are excluded from the Faster Payment Terms Policy for reporting purposes only (businesses supplying goods or services within these categories may still be eligible for payment within five days):

  • Aviation aircraft
  • Human resources related
  • Charity organisations
  • Information communications & technology services
  • Civil Services - asphalt services, demolition, rails & fencing & traffic management
  • Isolated Patients Travel and Accommodation Assistance Scheme (IPTAAS) payments
  • Community Services, Chaplaincy and Religious Expenses
  • Lease payments
  • Construction direct professional services e.g. architects, engineering design, environmental consulting & geotech services, surveyors quantity surveying, estimating
  • Construction materials
  • Marketing/advertising
  • Construction e.g. Plant & Equipment, Earthmoving & Excavations, hire and repairs
  • Medical facilities and care e.g. aged care, hospices
  • Courier services - postage
  • Mining operations & quarries
  • Credit ratings and appraisal services
  • Not for Profit / NGO
  • Corrective Services Industries direct procurement
  • Police operational expenses
  • Educational external programs
  • Private use of medical or hospital facilities
  • Employee expenses
  • Professional dues
  • Facility management
  • Respite care
  • Financial services
  • Subscriptions & books
  • Fleet management expenses
  • Taxes
  • Foster care & family welfare services
  • Technical professional services
  • General contractors / contracted services
  • Traffic related technologies, RTA Car Plate and photo labels
  • General court & jury costs
  • Training & development
  • Government & Partnership payments
  • Travel, air travel and transport expenses
  • Grants
  • Utilities
  • Health wellness & benefits
  • Workers compensation expense


What is a PCard?

A Purchase Card (PCard) is a type of credit card used by NSW Government staff for low value purchases up to $10,000. The NSW Government will be directing the use of PCards for making payments up to $10,000.

The NSW Government encourages its employees to utilise the use of PCards for the payment of invoices under $10,000 where possible.

If you supply low value goods and services, up to $10,000, you should ask each agency you do business with if you are eligible to be paid by PCard.

Getting paid by PCard means you get paid instantly, and don’t need to get a purchase order from the agency before you supply goods or services.

What if I don't offer credit or debit card payments?

Expanding your payment options to include credit and debit card payments can assist you in keeping up with your customer’s payment preferences, in addition to managing the cash flow of your business.

There are many options for small business to consider when looking at accepting credit card payment:

  • EFTPOS machines 
    • Countertop machines
    • Mobile EFTPOS machines
    • Integrated machines
  • Smartphone and tablet credit card processing 
    • This usually involves a card ready that you attach to your smart device.


A credit card or card surcharge is an additional fee that can be applied by businesses when accepting payment using a credit card, debit card or prepaid card. It assists business in covering the costs of transactions paid for by card.

The Competition and Consumer Amendment (Payment Surcharges) Act 2016 prohibits all businesses from charging payment surcharges that are excessive. The Reserve Bank of Australia has detailed information on how to quantify costs that can be passed on to a consumer as a surcharge.

What should I do if a dispute arises over a payment under the policy?

Any complaint should first be raised with the relevant government agency’s accounts complaints officer. If the issue is not resolved, contact us