Queensland Government On-time Payment Policy

If your small business supplies goods or services to the Queensland Government, our On-time Payment Policy (formerly the Late Payment Policy) will benefit you.

For eligible invoices, the government will pay penalty interest to small business suppliers for all bills on contracts up to $1 million paid greater than 30 calendar days. This only applies to correctly rendered undisputed tax invoices.

From 1 July 2020, the Queensland Government will reduce payment timeframes for small business suppliers from 30 calendar days to 20 calendar days for eligible invoices of any value.

Read the Queensland Small Business Procurement Commitment - Action Statement for further information on the introduction of:

  • 20 calendar day payment timeframes
  • other changes to the On-time Payment Policy, including additional agency reporting requirements on late payments.

Who is eligible

Small businesses are eligible if they had fewer than 20 employees at the date of contract.

The minimum payment that will be made for accrued interest is $20.

Make a late payment claim

To claim interest on a late payment, you will need to submit an on-time payment claim form.

A late payment claim can only be made against a Queensland Government department.

How the interest is calculated

Interest will be paid at the unpaid tax interest (UTI) rate, which is 9.54% for the 2019-20 financial year.

Interest is applicable after 30 days up until payment is made. For example, if payment is made 35 days after the tax invoice date, interest is owed for the 5 days that the payment was late.

Exemptions to the On-time Payment Policy

Interest will not be applicable to:

  • payments to non-small business suppliers
  • payments on contracts with payment terms greater than 30 days
  • payments due during compulsory Christmas and New Year closure periods
  • payments unable to be made due to an event that prevents payments being approved and processed (e.g. a natural disaster)
  • payments to government employees and vendors
  • grant payments
  • sponsorship payments
  • donations.

Department-specific exemptions

Individual Queensland Government departments have specific exemptions from the On-time Payment Policy. As these exemptions become available, they will be listed on this website.

Read the current list of department-specific exemptions.

Publishing interest payments

The Queensland Government will monitor interest penalty payments and publish them on the Open Data website each quarter. No information that will identify you or your business will be listed.

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