Brisbane 26 June 2013. Small businesses in Queensland will enjoy greater financial security and a better environment to expand their operations following a Newman Government commitment to pay its bills on time.

Premier Campbell Newman said that from 1 July 2013, the government’s Late Payment Policy will guarantee that private sector suppliers who are not paid within 30 days receive interest on amounts they are owed.

“We need to create a business climate that does not subject small businesses to poor government payment practices,” Mr Newman said.

“Our Late Payment Policy will provide small business owners with the certainty they need to make confident planning decisions and perhaps even embark on expansion of their operations.”

Mr Newman said the policy delivered on an election promise and demonstrated the government’s commitment to lifting its own performance.

“Effective cash flow management is a core precept of small business and can often prove the difference between success and failure,” he said.

“The Late Planning Policy also sends a message to government departments that they must become more efficient in managing their accounts payable – or face a penalty.”

Minister for Science, Information Technology, Innovation and the Arts Ian Walker said the government would monitor interest penalty payments and publish them on its open data website on a quarterly basis.

“We believe this approach to fiscal management is the responsible thing to do as we work more closely with all levels of the Queensland business community,” Mr Walker said.

“The Late Payment Policy is proof of the government’s commitment to greater transparency and support for small business.

“We need to do everything we can to foster a stable and certain business environment so that operators have the confidence they need to embark on a further project or venture.”

Minister for Tourism, Major Events, Small Business and the Commonwealth Games Jann Stuckey said businesses could decide for themselves whether or not they sign up to the new policy.

“Participation in the Late Payment Policy by small business is optional and applies to contracts up to $1 million that have been submitted on correctly rendered undisputed tax invoices,” Ms Stuckey said.

Chamber of Commerce and Industry Queensland Chief Executive Officer Stephen Tait applauded the Government for its commitment to improve the timeliness of payments to small businesses.

“Cash flow is everything for small business and we believe this policy will strike a chord with them,” Mr Tait said.

“Previous State Government practice generally required business to pay them within a given period of days, yet payments made by Government were often late.

“It is great to see a clear and transparent policy that clearly articulates business rights when dealing with the State Government.”

Visit www.business.qld.gov.au/late-payment for access to claim forms and to find out more about the policy.