This bill is currently before Parliament.
Government & democracy
Large businesses could lose access to Commonwealth contracts above a threshold set in government rules.
Allegra Spender said poor cash flow was the leading reported cause of small-business insolvency, while about 35 per cent of recent ombudsman disputes concerned payments. In the reporting cycleA six-month period covered by a payment report. ending December 2025, 70 per cent of payments were made within 30 days, 24 per cent took 30 to 60 days and 6 per cent took longer. Only 4 per cent of businesses made every payment within 30 days, while about as many recorded at least one payment taking over 100 days.
Australia already had the Payment Times Reporting Scheme, introduced to improve how large businesses pay small suppliers, but reporting and existing procurement rules had not produced reliable change: the 2023 statutory review found the scheme had not met its objective, and December 2025 data showed only 4% of small-business payers made every payment within 30 days. Allegra Spender MP’s private member’s bill responds by tying Commonwealth procurementThe federal government buying goods or services. eligibility to payment performance, with exemptions for taxpayer value and a proposed commencement on 1 July 2027.
The evidence pack does not contain an opposing speech or a substantive criticism of the bill. Allegra Spender argued the existing reporting system had produced paperwork without changing payment behaviour.
Allegra Spender MP introduced this bill. Supportive speeches so far have come from some crossbench members.
Did it become law?
Not yet
Final passage
No final vote yet
The bill has not yet completed passage through Parliament.
Days since introduction
46 days
Updated 07 Aug 2026.
Meaning
Large businesses could lose access to Commonwealth contracts above a threshold set in government rules. This applies after three straight reporting cycles averaging over 30 days.
Large businesses that miss required payment reports could also be excluded. Missing reports in all three recent cycles would trigger the restriction.
Businesses that improve their payment time to 30 days or less in one cycle would escape the restriction.
Government buyers could still use an excluded supplier for a critical national need, when no alternative exists or when exclusion would significantly increase costs.
Excluded businesses could receive up to 18 months to reduce their average payment time to 30 days or less under an approved improvement plan.
Affected businesses could ask the Administrative Review TribunalAn independent body that reviews government decisions., an independent reviewer of government decisions, to reconsider rejected or cancelled exemptions.
Large businesses would face the new rules from 1 July 2027. The proposal uses payment information already collected rather than creating another reporting requirement.
(1) Despite any instrument in force under subsection 105B(1), an entity referred to in that subsection must not procure goods or services from another entity at a particular time if: (a) the value of the procurement is greater than the amount prescribed by the rules; and (b) the other entity is a restricted payer at that time. (2) An entity is a restricted payer at a particular time if: (a) the entity is a reporting entity or reporting nominee; and (b) in each of the reporting cycles that ended within or at the end of the 3 most recent reporting periods for the entity: (i) the entity’s aPublic Governance, Performance and Accountability Amendment (Supporting Small Businesses To Be Paid On Time) introduced text
(2) An entity is a restricted payer at a particular time if: (a) the entity is a reporting entity or reporting nominee; and (b) in each of the reporting cycles that ended within or at the end of the 3 most recent reporting periods for the entity: (i) the entity’s average payment time to small business suppliers exceeded 30 calendar days; or (ii) the entity was required to lodge a payment times report and did not do so.Public Governance, Performance and Accountability Amendment (Supporting Small Businesses To Be Paid On Time) introduced text
(2) An entity is a restricted payer at a particular time if: (a) the entity is a reporting entity or reporting nominee; and (b) in each of the reporting cycles that ended within or at the end of the 3 most recent reporting periods for the entity: (i) the entity’s average payment time to small business suppliers exceeded 30 calendar days; or (ii) the entity was required to lodge a payment times report and did not do so.Public Governance, Performance and Accountability Amendment (Supporting Small Businesses To Be Paid On Time) introduced text
105BB Exemption—critical national interest (1) Subsection 105BA(1) does not apply in relation to a procurement of goods or services from a restricted payer if the Finance Minister determines, under subsection (2) of this section, that the procurement is exempt. (2) The Finance Minister may determine, in writing, that the procurement is exempt if the Finance Minister is satisfied that the procurement is necessary to address a critical national interest. (3) A determination under subsection (2) must specify the following: (a) the relevant procuring entity; (b) the relevant restricted payer;Public Governance, Performance and Accountability Amendment (Supporting Small Businesses To Be Paid On Time) introduced text
105BD Exemption—remediation undertaking (1) Subsection 105BA(1) does not apply in relation to a restricted payer if the Finance Minister determines, under subsection (2) of this section, that the restricted payer is exempt. (2) The Finance Minister may determine, in writing, that the restricted payer is exempt if: (a) the restricted payer gives the Finance Minister: (i) a remediation undertaking in accordance with subsection (3); and (ii) any other information or documents prescribed by the rules; and (b) the Finance Minister is satisfied that: (i) the remediation undertaking is crediblPublic Governance, Performance and Accountability Amendment (Supporting Small Businesses To Be Paid On Time) introduced text
105BF Merits review (1) An application may be made to the Administrative Review Tribunal for review of a decision by the Finance Minister to: (a) refuse to make a determination under subsection 105BB(2), 105BC(2), 105BD(2) or 105BE(2); or (b) revoke, under subsection 105BD(5) a determination in force under subsection 105BD(2). (2) An application under subsection (1) may be made by an entity that applied for a determination mentioned in paragraph (1)(a) or an entity in respect of which a determination in force under subsection 105BD(2) was revoked.Public Governance, Performance and Accountability Amendment (Supporting Small Businesses To Be Paid On Time) introduced text
2 Commencement (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms. Commencement information Commencement Date/Details 1. The whole of this Act 1 July 2027. Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act. (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or iPublic Governance, Performance and Accountability Amendment (Supporting Small Businesses To Be Paid On Time) introduced text
Context
Australia already had the Payment Times Reporting Scheme, introduced to improve how large businesses pay small suppliers, but reporting and existing procurement rules had not produced reliable change: the 2023 statutory review found the scheme had not met its objective, and December 2025 data showed only 4% of small-business payers made every payment within 30 days. Allegra Spender MP’s private member’s bill responds by tying Commonwealth procurementThe federal government buying goods or services. eligibility to payment performance, with exemptions for taxpayer value and a proposed commencement on 1 July 2027.
ASBFEO inquiry finds Australian payment times are too long
The inquiry found Australian businesses were taking longer than international peers to pay suppliers, with delayed payments providing large businesses with working-capital benefits at small suppliers’ expense.
Treasury ↗Payment Times Reporting Scheme is established
The Payment Times Reporting Act 2020 created six-monthly reporting obligations for large businesses and some government enterprises to disclose their payment terms and practices.
Treasury ↗Statutory review finds reporting has not changed payment behaviour
The Emerson Review found the scheme was poorly functioning, imposed onerous reporting and had not achieved its objective of improving payment terms and practices.
Treasury ↗Government updates reporting rules but leaves the incentive gap
Administrative recommendations were implemented through amendments to the Payment Times Reporting Rules, but the changes did not create a strong incentive for businesses to pay small suppliers faster.
Treasury ↗Payment data shows late payment remains widespread
The latest register data showed only 4% of small-business payers made all payments within 30 days, while 4.6% recorded at least one payment taking more than 100 days.
Public Governance, Performance and Accountability Amendment (Supporting Small Businesses To Be Paid On Time) explanatory memorandum ↗Allegra Spender MP introduces bill to link contracts to payment performance
The private member’s bill would restrict Commonwealth contracts above a prescribed threshold for businesses that consistently pay late or fail to report, using existing payment data and commencing on 1 July 2027.
Parliamentary timeline ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
Key criticism
The evidence pack does not contain an opposing speech or a substantive criticism of the bill. Allegra Spender argued the existing reporting system had produced paperwork without changing payment behaviour.
Kate Chaney supported the proposal, describing the restriction as measured, reversible when payment performance improves and backed by exceptions.
May not change payment behaviour
The Ombudsman warned that the existing Payment Times Reporting Scheme had not produced significant improvements and that the register offered limited practical relief to small businesses. It argued that stronger transparency and enforcement may be needed for procurement-linked restrictions to change conduct.
No guaranteed payment deadline
COSBOA said the broader payment-reporting reforms did not go far enough because they lacked a mandated maximum payment time. It supported better reporting but questioned whether disclosure and public naming alone would change the behaviour of persistent late payers.
Further sources
Votes
No recorded votes have been found yet for this bill.
Parliamentary debate
Start here — lead voices
Allegra Spender supports the bill, arguing that linking government procurement to payment performance will help small businesses get paid on time and make the existing reporting scheme effective.
Read in Hansard ↗Kate Chaney supports the bill, saying it would help small businesses by making access to major Commonwealth contracts depend on paying suppliers on time.
Read in Hansard ↗All speeches by bloc
2 speakers · 2 support
“Small businesses deserve to be paid on time. We have the mechanisms, we have the reporting in place to put real impetus behind this, but the government hasn't acted. What we have imposed is red tape without outcomes. We must stop this, and we need to get small businesses paid on time. This is a sensible, real-world amendment that can start to use the power of government procurement to get better outcomes for small business, and I urge the government to accept it.”Read the full speech in Hansard ↗
“This bill is one concrete way that we can make it easier. It doesn't cost the budget a cent. It doesn't add a reporting obligation. It just says that if you want public contracts, you have to treat the small businesses in your supply chain fairly. In Curtin, these small businesses are the fabric of our community. They create the jobs, take the risks and bring our neighbourhoods to life. The least we can do is make sure they get paid on time. I commend this bill to the House.”Read the full speech in Hansard ↗
Record
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
