Payment Terms Legislation In Australia

The Construction Contracts Act limits payment terms to a maximum of 42 days. Where no terms in a contract exist payment must be made within 28 days of a request.

The Australia Payment Times Reporting (Consequential Amendments) Bill 2020 requires all companies with turnover of more than $100m to report on their payment terms and practices for small business suppliers (less than $10m annual turnover) every six months.

The Business Council of Australia promotes the Australian Supplier Payment Code where members commit to pay suppliers within 30 days.

The Australian government policy RMG 417 requires all non-corporate commonwealth entities with compliant e-invoicing capabilities to pay e-invoices within 5 days and all other other small supplier invoices within 20 days, regardless of the size of invoice.

The Australian Small Business and Family Enterprise Ombudsman has investigated commercial payment terms to SMEs and proposed a 30 day maximum term. No law has yet been proposed, rather reporting requirements have been introduced.