The Victorian Fair Payment Code provides a framework for businesses to pay their small and medium suppliers on time. The Code recognises the importance of small and medium businesses to the Victorian economy and its aim is to promote good payment practices.
The Code will be administered by the Victorian Small Business Commissioner (VSBC) and will come into effect on 1 July 2017. We encourage businesses of all sizes to become signatories to show their leadership on this important issue.
Victorian Fair Payment Code of Practice
Code signatories undertake to:
- Pay on time
- Pay small and medium suppliers within 30 days from the date of the receipt of a tax invoice
- Not change the length of payment on unreasonable grounds
- Communicate clearly with suppliers
- Prepare contracts in clear and simple language
- Give suppliers clear guidance on payment terms and procedures
- Promptly advise suppliers if there is any reason why an invoice will not be paid within the agreed terms
- Undertake to resolve disputes quickly
- Inform suppliers of the internal process for handling a payment dispute
- Participate in alternative dispute resolution including mediation through the VSBC for disputes that cannot be resolved internally
- Encourage fair payment practice
- Encourage suppliers to adopt the Fair Payment Code within their own supply chains
- Identify your business as a leader in fair payment by using the Fair Payment Code branding
If your business is interested in being a signatory to the Code, or you’d like to provide us with feedback, please contact us.