The Department of Finance is setting a new benchmark with invoices paid faster from 1 May. The 20-day turnaround for paying invoices under $1 million will improve cash flow for WA businesses hit hard by the COVID-19 pandemic.
The reduction of standard payment terms by 10 days will be a welcome boost for more than 2335 local businesses, including construction companies, maintenance contractors, building landlords and community services organisations.
“Western Australian businesses are central to our local economy and they are a key focus of this Government as we implement COVID-19 economic stimulus measures”, Minister for Finance Ben Wyatt said.
“We know that receiving payments faster will improve cash flow and help small to medium WA businesses pay their staff, suppliers and other bills”.
The Department pays invoices worth over $1.25 billion each year. The new terms will apply to invoices for goods and services from 1 May, and for works from 18 May. The new terms will continue to apply after the pandemic is over.
“I’m pleased the Department of Finance is leading the way and will introduce the fast-tracked payment terms from Friday”, the Minister said.
“I look forward to other departments and agencies offering quicker payment terms for good and services later this year.”