The Government today introduced a strict payment regime on state agencies that obliges them to pay creditors within 30 days or face penalties for tardy payment.
 
State Owned Corporations will be encouraged to adopt the payment regime.
 
Payments for outstanding accounts are to be made by Government agencies within 30 calendar days or they will face paying penalty interest on the outstanding debt.
 
All Government agencies must pay creditors’ bills within 30 days or be liable to pay penalty interest equal to what the Office of State Revenue charges for late payments.  The interest rate is determined under the Taxation Administration Act 1996, available from the NSW Office of State Revenue.

Agencies have been directed to report their payment performance to the Department of Finance and Services who will post Government's payment performance report every quarter on their website. The Auditor-General will conduct a compliance review in 2013 to ensure the on-time payment policy is adhered to.

The payment policy will be effective immediately. The transition period for the 30 day Payment Policy is expected to apply for six months from 1st July 2011 to allow agencies to make appropriate administrative arrangements to ensure that all bills from small business are paid on time.
 
Any disputes or complaints should first be raised with the agency’s accounts complaints officer. If the issue cannot be resolved, the debtor can refer the issue to the recently appointed Small Business Commissioner.
 
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More Information

30 Day Payment Policy - Frequently Asked Questions
Media Release - Government Agencies to Pay Their Way in 30 Days