The Government has announced a policy of paying interest on late payments to small businesses. The Procurement 30 Day Payment Policy for Small Business (the policy) states that, for written contracts up to A$1 million (GST inclusive), agencies are to pay interest on late payments following receipt of a correctly rendered invoice.
This policy is in effect as of 1 December 2008 and does not apply to procurements where prior to this date, a written contract or standing offer was already in place or in the process of being negotiated.
Details of this policy can be found on the Department of Finance and Deregulation website.
For information on estimating the amount of interest you may be entitled to on a late payment, visit our Calculation of late payment interest page.