Cash Flow Boost for Small Business

Jul 11, 2020 | State News

A State Liberal Government would improve cash flow for West Australian businesses reeling from the effects of the COVID-19 crisis by speeding up the payment of invoices to within five business days. 

The current term is 20 days under the McGowan Labor Government. 

Liberal leader Liza Harvey said the proposal to fast-track payments was a key plank of the Liberal Party’s commitment to helping businesses recover from the COVID-19 crisis. 

“Reducing the payment terms to suppliers to five days from the current 20 days would be a tremendous boost for a wide range of businesses,” Ms Harvey said. 

“This will improve cash flow at a time when so many are feeling the pinch because of the COVID-19 crisis. As a small business owner I know how critical cash flow is. 

“The State Government should be paying their bills much faster. Until recently the Government’s terms were 30 days. They were put under pressure and reduced it to 20 days, but that is still not good enough in this day and age.” 

Shadow Minister for Tourism and Small Business Alyssa Hayden said five-day payments were fast becoming the Government standard across Australia. 

“WA’s small and family-run businesses were already doing it tough under the McGowan Labor Government prior to COVID-19 and they are hurting more than ever now,” Mrs Hayden said. 

“As consumers, we all have to pay our bills on time, so why can’t our State Government?” 

Ms Harvey said the policy would start rolling out from July 1, 2021, and would include all government businesses like Synergy and the Water Corporation. 

“If elected, small businesses registered with the Small Business Development Commission would be paid immediately for correct invoices up to $10,000; and within five business days for all goods and services up to $1 million,” Ms Harvey said. 

“This will not only assist with cash flow for small businesses but it is hoped that this Liberal Government initiative would set an example for the private sector, which on occasions does not operate in a fair manner to West Australian small businesses.”