BCA initiates review into payment code

In May 2017, The BCA launched the Australian Supplier Payment Code, aimed at improving payment times across the economy and pay small businesses within 30 days of a receipt of a correct invoice.

Former Australian Competition and Consumer Commission chair Graeme Samuel has been named the independent reviewer and will be consulting with governments, businesses and a panel of experts.

Mr Samuel will be consulting with minister for small and family business, skills and vocational education, Michaelia Cash, state-based ministers responsible for small business, state-based small business commissioners and other business representative bodies and individual businesses.

In addition, the panel of experts include Australian Small Business and Family Enterprise Ombudsman, Kate Carnell, Victorian small business commissioner Judy O’Connell, Council of Small Business Organisations Australia chief executive Peter Strong, and Rio Tinto principal of procurement, Dick Fourie.

Ms Carnell said she is particularly interested in whether the code has made an impact on payment times since it was launched last year.

Further, she indicated interest in knowing how the code could be better promoted and if any of the code requirements needed changing.

“Consultation with BCA members who have not yet adopted the code should give us an insight into any barriers to adopting the code,” Ms Carnell said.

Ms Carnell added that more small businesses in Australia are falling victim to the unscrupulous payment practices of some big businesses and some government instrumentalities, which is a drag on the economy.

“Given small businesses typically operate on extremely tight margins, all payments should be made in 30 days or less. As any small business owner will tell you, cash flow is king,” she said.

“Chasing overdue payments causes stress and anxiety; it's a waste of time and it stymies growth by forcing the business to focus on surviving rather than thriving.”

Submissions to the review are due by 28 September, with Mr Samuel required to provide a draft report to the BCA by 11 December.