Michaelia Cash (WA, Liberal Party, Minister for Employment, Skills, Small and Family Business) Share this | Hansard source

I thank Senator Rennick for his question. Cash flow is king for small business in so many ways. We in the Morrison government are committed to backing our 3.4 million small and family businesses every step of the way. They employ almost seven million Australians. As we know, they are the lifeblood and the backbone of the local communities in which they are located. They also, though, play a very important role as suppliers and service providers to big businesses. In fact, the trade between SMEs and big businesses is worth more than $550 billion per year.

We're all aware of the saying, 'Cash flow is king.' If we accept that saying, that cash flow is indeed king, then late payments to small businesses are a potential usurper of every small business in Australia. The damage that late payments can inflict on small businesses in Australia cannot be understated. That is why the government has put policies in place and is leading by example when it comes to ensuring that small businesses are paid promptly and on time. Senators will be aware that the government has introduced 20-day payment times for small businesses that have contracts with the government up to $1 million. We believe that all governments should put these policies in place, and I'm very pleased that the states have agreed through the COAG process that cash flow is crucial to any small business and that all governments should lead the way in paying small businesses on time. We're also taking action to ensure that large businesses who want to do business with government match our 20-day payment policy. Small and family businesses need to be paid on time— (Time expired)