Saturday, April 13, 2024

Business payments Act to be repealed

Small Business and Manufacturing Minister, Andrew Bayly, has today announced the Government will repeal the Business Payment Practices Act 2023 in a bid to address and improve business payment practices.

“There is a major problem with large market players imposing long payment terms and routinely paying invoices late,” the Minister said.

“However, the Business Payment Practices Act is not an effective solution and would impose unnecessary compliance costs to over 3000 businesses upgrading their ICT systems.”

He said Australia had implemented a similar scheme in 2020, but a recent review of the scheme’s effectiveness found that payment times have not reduced.

“Furthermore, small businesses can already find out which companies are late payers through a credit agency at minimal cost.”

“The Government will be requiring government agencies to adopt faster payment times, including for eInvoices, which will support business cashflow and encourage the growth of eInvoicing.

“We will also work with BusinessNZ to create an industry-led voluntary code to ensure small businesses are paid on a more timely basis.

“As a Government we are committed to supporting businesses and getting the economy growing faster,” Mr Bayly said.

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