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The Government is committed to ensuring suppliers operating in the supply chains of Australian Government procurement contracts are not left waiting for payments from large businesses.
The Payment Times Procurement Connected Policy (PT PCP) leverages approximately 100 Australian Government agencies’ purchasing to improve payment times to suppliers in government contracts supply chains.
Since 1 October 2021, large businesses (annual income of over $100 million) awarded government contracts of over $4 million are required to pay their new subcontracts (up to $1 million) within 20 calendar days. Late payments of invoices in scope incur interest penalties. The policy complements the Government Supplier Pay on Time or Pay Interest Policy.