The average payment time from a large business to their small suppliers has improved, but only just.
Payment times are now, on average, 35.4 days, which is a 5% reduction from when payment times reporting began in 2021.
“While this new data is welcome our Government understands more work is required to ensure small businesses are paid on time,” said Minister for Small Business Julie Collins.
At the same time, the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) has reported that payment disputes are the most common reason small businesses engage with the ASBFEO.
“Power imbalances make it difficult for a small business to pursue timely payment for their services,” said ombudsman Bruce Billson.
The federal government said it is committed to increasing pressure on big businesses to improve payment times by highlighting the worst performers.
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