Are you a business in the supply chain of government contracts? Are you interested in bidding for a government contract in the future? Is your business required to report under the Payment Times Reporting Scheme? If yes, the Payment Times Procurement Connected Policy may affect you.

What is the Payment Times Procurement Connected Policy?


The Australian Government is committed to ensuring businesses are paid on time so that businesses have healthy cash flow and can continue to invest, grow, and hire.

The Payment Times Procurement Connected Policy (PT PCP) will leverage approximately 100 Commonwealth government agencies’ purchasing to improve payment times to suppliers in government contracts supply chains.

Learn more about the Payment Times Procurement Connected Policy.

What is the transition period?


The policy transition period, from 1 July 2021 to 30 September 2021, will allow businesses and government agencies to adapt their procurement processes and payment systems to comply with the PT PCP.

From 1 October 2021, the PT PCP will require large businesses (the Reporting Entities under the Payment Times Reporting Act 2020) awarded Commonwealth government contracts of over $4 million (GST inclusive) to pay their subcontracts of up to $1 million (GST inclusive) within 20 calendar days, or pay interest.

Suppliers of eligible government subcontracts who are not paid within 20 calendar days may be eligible to claim interest for late invoices, payable at the same rate as the government pays its late invoices.

The policy complements the Government’s Supplier Pay On-Time or Pay Interest Policy.