The Department of Finance has introduced a new payment turnaround of 20 days for the settlement of invoices received on or after 1 May.
The new payment standard applies to invoices under $1 million and is expected to improve cash flows for businesses hit hard by the COVID-19 pandemic.
Minister for Finance, Ben Wyatt said the reduction of standard payment terms by 10 days would be a welcome boost for more than 2,335 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,” Mr 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”.
He said the Department of Finance paid invoices worth more than $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,” Mr Wyatt said.
“The new terms will continue to apply after the pandemic is over.
“I’m pleased the Department of Finance is leading the way and look forward to other Departments and Agencies offering quicker payment terms for goods and services later this year.”
He said the initiative complemented the Government’s $1.8 billion stimulus and relief package for businesses and households announced so far.
