Introduction:
In December 2018, the NSW Government introduced the Faster Payment Terms (FPT) policy to help see registered business suppliers’ invoices1paid by in-scope departments within 20 calendar days. In January 2020, the NSW Government shortened payment times for registered small business suppliers to five business days. This commitment applies to undisputed and correctly rendered invoices up to $1 million.
Since the introduction of the FPT policy in 2018, and the transition to five-day payments in 2020, there have been numerous advances in technology, including the introduction of electronic invoicing (eInvoicing) and new payment platforms. The NSW Digital Government Strategy and NSW Banking and Payments reform program include the introduction of an eInvoicing mandate from January 2022, policies to encourage card payments and the expansion of the Supplier Hub platform.
Additionally, the NSW Government’s COVID-19 Economic Recovery Strategy identified the FPT policy as a potential mechanism to support the state’s economic recovery by continuing and improving engagement with the small business sector
