Faster payments coming for QLD tradies30 January 2017
Queensland is about to introduce a new state payment scheme for subcontractors.
The new system is designed to ensure sub-contractors will be paid in full and on time. It’s estimated that faster payments will create an extra $6.42 billion of economic activity over the next 20 years. Plus, it will also generate thousands of jobs.
Housing Minister Mick de Brenni says he's heard from countless subbies that non-payment or delayed payment is killing small business confidence and tearing apart families.
The proposed scheme comes as the Small Business Ombudsman Kate Carnell announced an inquiry into late payment terms. The Ombudsman recently stated that "Here in Australia, more and more small businesses are falling victim to the unscrupulous payment practices of some big businesses – and even some governments – that are quite frankly, a drag on productivity. A number of big businesses are effectively treating the little guys as banks by forcing them to provide interest free-loans in the form of late paid or unpaid invoices."
The introduction of such a payment scheme should come as music to the ears of many independent tradies. However, it will be interesting to see how the scheme will work in practical terms. We’ll keep you posted with more on this story as it becomes available.