Late and long payment – Government’s published final plans

We were pleased to see that the 60-day limit to payment terms has been agreed. While the Department initially had plans to reduce this over time to 45 days, it’s now scrapped that intention but may ‘revisit it in future’.

It’s also confirmed there will be a deadline for disputing invoices and mandatory interest on late payments. Plans for the Small Business Commissioner to be given powers to investigate and adjudicate rule breaches will also go ahead.

Legislation needs to go through Parliament first, so it’s likely these changes will come in during 2027.  We’ll keep you updated and, once it’s in force, we’ll need to hear from you how effective its proving in practice.