We’re always looking for ways to improve, simplify and streamline the way we do business, both for our customers, and those we do business with. That’s why we’re moving to shorter, 20-day payment terms for thousands of businesses to ensure our suppliers are paid sooner.
Back in 2017, we made a commitment to pay suppliers that are small businesses within 30 days. We also extended this approach to charities, Indigenous organisations and disability enterprises. Now we’re continuing this good work, increasing our commitment to pay more suppliers even faster.
This new arrangement means that we move to 20-day payment terms for any supplier with invoices of up to $2 million annually.
Before the end of this financial year, over 85% of our suppliers will have their invoices paid within 20 days of us receiving an invoice.
Cash flow is crucial to any business, and this change means operators will have cash in their hand sooner than ever.
When we started this process in 2017, we used the Australian Bureau of Statistics’ definition as to what a small business was. Three years later, these definitions have shifted as part of our ever-diversifying economy.
Our new methodology for paying invoices within 20 days captures more businesses than ever, and we encourage governments and the Small Business Ombudsman to create a new standard, consistent definition of small business to ensure everyone is playing by the same rules.
We’ll work with our suppliers over the coming months to update payment term agreements, and we’re proud to continue to help businesses throughout Australia.