In 2017-18 we continued to review compliance with the State Government’s Fair Payments Policy (FPP) in consultation with Small Business Victoria.
The FPP, introduced in 2004, requires certain State Government departments and agencies to pay invoices of up to $3 million within 30 days of receipt of invoice, where there are no disputes relating to the goods or services provided. Penalty interest rates can be claimed by businesses for late payment.
We wrote to all seven departmental secretaries, requesting key data on invoice payments in 2017-18 from each department, and from the five largest agencies (by expenditure) within each portfolio area.
Respondents reported that 1,156,990 invoices relating to contracts under $3 million were paid.
Overall, a compliance rate of 86 per cent was reported, the same as in the previous year. We will continue to work with departments and key agencies to encourage reduced payments time for small businesses.