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Fair payments policy

The Victorian Government is committed to a fair payments clause into Government contracts, to improve cash flow certainty for Victorian small and medium sized businesses.

Contracts to which the provision applies

The fair payments provisions will apply to contracts entered into from 01 July 2007 where the value of the goods or services does not exceed $3 million.

Calculation of Penalty Interest

The interest payable on late payments will be in accordance with existing Victorian legislation, namely, the Penalty Interest Rates Act 1983.

Monitoring, Reporting & Evaluation

Agencies should ensure that appropriate monitoring and reporting mechanisms are established.

Role of the Victorian Small Business Commissioner

Under the Small Business Commissioner Act 2003, the role of the office of the Victorian Small Business Commissioner (VSBC) is to enhance a competitive and fair operating environment for small business in Victoria.