It has become apparent that Australia is the worst at paying invoices in the world. According to Market Invoice’s recent study into invoice payments around the world. Australia is the worst at making on time payments of all 19 countries surveyed. The data came from over 30,000 invoices across 5 years including 80 countries. The research concluded that 60% of invoices are paid late, 1 in 5 are paid more than 2 weeks after due and the average invoice is paid 6 days late!
After this and extensive investigation by the Vic Government with businesses and the Business Council of Australia, The Australian Supplier Payment Code has been created to curb this kind of reputation, and to encourage economic growth and prosperity in Australia.
The code is a voluntary national agreement that covers fair payment from business to their small business suppliers. Signatories will be published on the Business Council of Australia website from the 1st of July. Any business that operates in Australia is eligible to sign the code.
Summary of the Australian Supplier Payment Code (ASPC)
Signatories to the Code commit to:
- Pay small business suppliers within 30 days (subject to conditions)
- Pay all suppliers on time
- Provide clear guidance about payment procedures to suppliers
- Work with suppliers to improve invoicing and payments practices
- A process for resolving payment disputes and complaints (see link to guidance note)
- Basic reporting on company policies and practices in place to comply with the Code.
Full code: Australian Supplier Payment Code