- Department of Finance to reduce standard payment terms to suppliers by 10 days for invoices under $1 million
- Faster invoice payments will improve cash flow for Western Australian businesses during and after the COVID-19 pandemic
- Department of Finance manages the payment of invoices worth over $1.25 billion each year
- More than 2,335 businesses to benefit from fast-tracked payments
The Department of Finance will fast-track payments to suppliers for invoices of under $1 million as part of a new initiative that will provide additional support for Western Australian businesses during and after the COVID-19 pandemic.
The Department of Finance will pay invoices of under $1 million to businesses within 20 days, rather than the current 30-day term.
The department manages the payment of invoices worth over $1.25 billion each year and will start to implement the faster payment terms from May 1, 2020 for goods and services and from May 18, 2020 for works.
Businesses to benefit from fast-tracked payment terms will include construction companies, maintenance contractors, building landlords and community services organisations.
This new initiative complements the McGowan Government's $1.8 billion stimulus and relief package for WA businesses and households announced to date.
Comments attributed to Finance Minister Ben Wyatt:
"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.
"We know that receiving payments faster will improve cash flow and help small to medium WA businesses pay their staff, suppliers and other bills.
"Improving cash flow for businesses will help them recover from the COVID-19 pandemic and support the recovery of the Western Australian economy.
"I'm pleased the Department of Finance is leading the way and will introduce the fast-tracked payment terms straight away.
"I look forward to other departments and agencies offering quicker payment terms for goods and services later this year."
Minister's office - 6552 5900