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 Debtplacer Construction Payment Times Report takes a detailed look at the industry payment data 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. As a sector, the construction industry is one of the most reliant industries on small businesses, with total average small business procurement being in excess of 42%. Despite its heavy reliance on small businesses, the construction industry imposes some of the longest standard payment terms when compared with other industries, with nearly one quarter of all invoices paid outside of standard payment terms.
Debtplacer has compiled this report to enable businesses to make more informed decisions when it comes to industry benchmarking or deciding who to do business with. If you are experiencing problems with overdue invoices the Debtplacer platform allows you to list debts, compare collection fee proposals, and through reduced administration, improve the time it takes to get paid.