‘Naughty and nice’ list to be created for small business payments

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Late payments by large companies are estimated to cost small and medium business $7 billion a year and contribute to their failures, prompting new rules from the federal parliament.

Already a subscriber?Big businesses that look after small suppliers by paying bills promptly will be rewarded under new laws proposed by the Coalition that have received support from Labor and the crossbench.Deputy opposition leader Sussan Ley.Under the proposal, businesses that pay small suppliers within 20 days will qualify for an official “fast small business payer” designation from the government that is supposed to make them more attractive to do business with.

The new incentive will be added to the existing suite of Labor reforms via a Coalition amendment, with the package due to be debated in the Senate and passed by parliament this week, ahead of the winter break. “I envisage the new ‘fast small business payer’ designation will be highly sought after and will ensure small businesses can make informed choices about who they choose to partner with.”

 

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