The Victorian Government has recently taken an initiative to try to assist smaller businesses who are being
abused by the delayed payment of their Invoices and Debtors Payable when due. Below is the Government
Apart from the potential legal issues that may become involved if businesses don't comply, this is a good,
simple and sensible guideline for dealing with customers and suppliers, to develop good business relationships.
Good relationships keep you in good business
The Victorian Fair Payment Code provides a framework for businesses
to pay their small and medium suppliers on time. The Code recognises
the importance of small and medium businesses to the Victorian
economy and its aim is to promote good payment practices.
The Code will be administered by the Victorian Small Business
Commissioner (VSBC) and will come into effect on 1 July 2017. We
encourage businesses of all sizes to become signatories to show their
leadership on this important issue.
Victorian Fair Payment Code of Practice
Code signatories undertake to:
1. Pay on time
• Pay small and medium suppliers within 30 days from the date of the receipt of a tax invoice
• Not change the length of payment on unreasonable grounds
2. Communicate clearly with suppliers
• Prepare contracts in clear and simple language
• Give suppliers clear guidance on payment terms and procedures
• Promptly advise suppliers if there is any reason why an invoice will not be paid within the agreed terms
3. Undertake to resolve disputes quickly
• Inform suppliers of the internal process for handling a payment dispute
• Participate in alternative dispute resolution including mediation through the VSBC for disputes that
cannot be resolved internally
4. Encourage fair payment practice
• Encourage suppliers to adopt the Fair Payment Code within their own supply chains
• Identify your business as a leader in fair payment by using the Fair Payment Code branding
If you'd like to provide feedback on the Code (by 31 May), or your business is interested in being a signatory
please contact Victorian Small Business Authority.