Queensland Government On-time Payment Policy
To support business cashflow during recovery from the coronavirus (COVID-19) pandemic, the Queensland Government has introduced faster payment terms.
From 1 July 2020, the On-time Payment Policy ensures that small business customers are paid within a maximum of 20 calendar days.
For eligible invoices, the Queensland Government will pay penalty interest to small business suppliers for all invoices of any value paid after 20 calendar days. This only applies to correctly rendered undisputed invoices.
Register your details on the On-time Payment Small Business Register to enable your business to be paid within 20 calendar days.
Contact us if you need help completing the form.
Ensuring all relevant information is included on your invoice will ensure your invoice is processed efficiently. An example of a standard invoice is available to provide guidance on invoicing for suppliers to government.
Read the Queensland Small Business Procurement Commitment – Action Statement for further information on the introduction of:
- 20 calendar day payment time frames for small business
- other changes to the On-time Payment Policy, including additional agency reporting requirements on late payments.
Who is eligible?
A small business is defined as an entity that employs less than 20 employees.
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. Read the Queensland Government On-time Payment Policy for more information.
How the interest is calculated
Interest will be paid at the unpaid tax interest (UTI) rate, which is 8.04% for the 2021–22 financial year.
Interest is applicable after 20 calendar days up until payment is made. For example, if payment is made 25 calendar days after the invoice date, interest is owed for the 5 calendar 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 existing contracts with payment terms of greater than 20 calendar days where those payment terms were set at 30 June 2020 or where requirements are mandated by legislation including the Building Industry Fairness (Security of Payment) Act 2017.1
- payments due during compulsory Queensland Government 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
1It is intended that this exemption will only be used in limited circumstances—the intention of the policy is to identify small businesses and ensure they are paid within 20 calendar days regardless of contractual arrangements.
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.
Reporting and publishing interest payments
The Queensland Government will monitor departmental payment performance and any penalty interest paid to small business suppliers and publish details on the Open Data website each quarter. No information that will identify you or your business will be listed.