Fair Go for small business with new Fair Payment Code
Published: 11 April 2017
The Victorian Government is introducing an Australian-first voluntary Fair Payment Code of Practice to encourage all businesses to pay their small business suppliers on time.
Managing cashflow is crucial for small businesses and late payments can have a serious impact on a business's profitability and ability to grow and create jobs for Victorians.
Small businesses play a vital role in the health of the Victorian economy, with more than 550,000 small businesses contributing about one third of the state's goods and services output and generating nearly half of the private sector jobs in the state.
That's why the Victorian Government is taking the lead with a new voluntary Fair Payment Code of Practice to help keep this crucial sector growing. Businesses who sign up to the code will be required to:
- Pay suppliers within 30 days of receiving an invoice
- Not change the settlement period without a valid reason
- Communicate clearly with suppliers
- Resolve disputes quickly
- Adopt fair payment practices throughout their businesses
The new code will come into effect on 1 July 2017 and will be administered by Victorian Small Business Commissioner (VSBC), who will manage a new website where businesses can sign up and resolve any complaints that are raised.
More information on the new code, how to get involved and how to provide feedback can be found at the website of the Victorian Small Business Commissioner at www.vsbc.vic.gov.au.