Australian Government Going After Late Payers
July 17, 2018
The Australian government is looking to combat late payments in the construction industry. The Australian Building and Construction Commission (ABCC) launched a campaign July 17 to help subcontractors secure payment.
According to a 2017 survey, 72% of Australian subcontractors surveyed reported at least 40% of their invoices were paid late, while another third of respondents said 60% of their invoices were not paid on time.
ABCC Commissioner Stephen McBurney is expected to write to contractors and subcontractors who “have tendered for Commonwealth-funded building work.” ABCC also announced that the campaign will educate subcontractors about their rights to prompt payment and how to report disputes and delays in payments.
According to the latest FCIB International Credit & Collections Survey for Australia (June 2018), billing disputes are the No. 1 reason for payment delays with nearly a third of respondents reporting the issue. However, there was no report of increasing payment delays, and a third of those surveyed said they had no payment delays at all.
“In short, we ask contractors to pay their subcontractors on time and, if there are payment delays or disputes, to sort these out quickly and reasonably,” McBurney concluded.
-Michael Miller, managing editor