Procurement Restrictions for Entities with Poor Small Business Payment Times
Public Governance, Performance and Accountability Amendment (Supporting Small Businesses To Be Paid On Time) Bill 2026
Independent Bill1st House
2nd House
Law
Introduced by: Allegra Spender (IND)
Links to official parliament websites
Effects of this bill
If this bill passes, it means that:
Entities are classified as restricted payers if they fail to lodge payment times reports; they are also restricted if their average payment time to small business suppliers exceeds 30 days for three consecutive periods.
Government entities cannot buy goods or services from restricted payers if the cost exceeds a set amount.
The Finance Minister can exempt a procurement if it is necessary for national security, defence, critical infrastructure, or a national emergency.
The Finance Minister can grant an exemption if no other supplier can provide the goods; the entity must first prove it conducted reasonable market testing.
The Finance Minister can exempt a restricted payer if they provide a credible plan to reduce payment times to 30 days or less within 18 months.
The Finance Minister can allow a procurement from a restricted payer if excluding them would significantly raise the cost.
Entities can apply to the Administrative Review Tribunal to challenge the Finance Minister's decisions to refuse or revoke an exemption.