On 1 January 2021, the Australian Government introduced the Payment Times Reporting Scheme under which large businesses and certain government entities with total annual income more than $100 million are required to report information on their payment terms and practices in relation to their small business suppliers.
The second edition of the Debtplacer Construction Payment Times Report takes a detailed look at the industry payment data for the 2nd half of 2021 and looks at changing trends from the 1st half across states, sub-categories and best and worst performing companies within the construction industry.
In the wake of recent high profile construction companies entering administration this report serves as a timely reference for those in the industry reviewing the health of their own receivables. Encouraginly the construction industry as a whole has seen an improvement in the payments being made to small businesses as well as a shortening of standard payment terms. However within the data there are some worrying trends for some operators.
Debtplacer has compiled this report from the Payment Times Reporting Scheme data to enable businesses to make more informed decisions when it comes to industry benchmarking. If you are experiencing problems with overdue invoices the Debtplacer platform allows you to list debts, compare collection fee and debt purchase proposals, and through reduced administration, improve the time it takes to get paid.