Add Category
Queensland's peak business group wants the state government to make faster payments to small businesses as new figures show one in 10 invoices are being paid late.
The government set a new benchmark in 2020 to ensure all small businesses that supplied the state would be paid within 20 calendar days for their services.
About $189.6 million of the $1.81 billion in invoices the government paid to small businesses in the most recent financial year was paid later than the limit.
It came after $164.5 million of the $1.53 billion the government spent on small businesses in 2021-22 was paid late.
Business Chamber Queensland has called on the government to change its on-time payment policy so all payments are made within 10 business days.
The organisation's chief executive, Heidi Cooper, said it was essential businesses were paid on time — warning delays could impact a business's cashflow and also affect the supply chain.
"We're seeing a stretched and stressed business community in Queensland and businesses need to plan and budget knowing they will be paid on time," she said.
"Businesses especially need confidence they will be paid on time if they supply to government."
Ms Cooper said cash was king for any business, but especially small business.
"When payments are not made on time, it can dramatically impact cashflow," she said.
The government offers penalty interest to affected businesses as part of its on-time payment policy.
It confirmed it paid no penalty interest in 2021-22, while a sole payout of $263 was made in 2022-23.
Business Chamber Queensland has called on the government to expand the policy to include businesses of all sizes.
Queensland Small Business Minister Lance McCallum said the government was committed to ensuring small businesses were paid within a "fair and acceptable time period".
He would not say if the government would accept the proposals from Business Chamber Queensland.
"We both encourage and appreciate representations that have been made from a range of stakeholders, including Business Chamber Queensland," Mr McCallum said.
"These are being given careful consideration as part of the upcoming Miles government budget, which will deliver more cost-of-living relief than any other in Queensland's history.
"Quarterly public reporting on the on-time payment policy is providing transparency in relation to actual agency performance."
Mr McCallum urged businesses who were not paid on time to apply for penalty interest.
Get local news, stories, community events, recipes and more each fortnight.