Faster Payment Terms Policy

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Small suppliers must register on Buy NSW to ensure agencies can identify them and process payments within 5 business days. Registration is essential for timely payments.

Guidance on correctly rendered invoices

An agency must only make a supplier payment on production of a correctly rendered invoice where all relevant payment conditions specified in the procurement contract have been met.

A correctly rendered invoice is an Australian Tax Office (ATO) compliant invoice which:

• meets the requirements of the approved purchase order, where applicable. This may not apply when paying by Purchase Card or purchasing from an approved purchasing catalogue
• is for amounts correctly calculated
• uses such method of delivery as notified by the agency to the supplier, which may include the requirement to use an electronic invoicing solution nominated by the agency
• is for work properly performed, for example, goods received in good condition or services satisfactorily carried out
• complies with any other specific agency requirements, for example, terms of trade.

Each agency must advise its suppliers of its requirements directly or by publishing information on its website.

This policy does not apply to:

• New South Wales Treasury Corporation (TCorp)
• State Owned Corporations
• Crown Land Managers, which has the same meaning as in the Crown Land Management Act 2016
• Commons Trusts, which means a trust established under the Commons Management Act 1989, section 4(1)
• Universities, which means a university established or continued by an Act of New South Wales.

This policy does not apply:

• if procuring and consuming goods and services overseas, or in currencies other than AUD
• if procuring real property, including leases and licences
• if procuring of financial instruments
• if procuring from a GSF agency or other Government entity
• to construction work or the provision of goods or services under a construction contract, which is subject to the Building and Construction Industry Security of Payment Act 1999 (NSW)
• where the payment arises from a non-procurement arrangement, such as a grant or scheme for services.

Under NSW Treasury policy an agency must use a purchase card for ad hoc, low value supplier payments up to $10,000 where the supplier accepts purchase card at the time of placing the order.

The payment time is the difference between the payment date and the date the agency received the correctly rendered invoice at the agency’s authorised area. The authorised area is specified by each agency but is typically the appropriate shared services team or accounts payable team.

The buyer or person ordering the goods or services is usually not the agency's authorised area. Suppliers sending invoices directly to the buyer or ordering person, are unlikely to be paid within 5 business days. Suppliers are urged to follow agency instructions by sending invoices only to authorised areas.

GSF agencies may pay interest on late accounts if included in the agency’s supplier payment policy.

Agencies are encouraged to consider the impact of late payments to small businesses and use their discretion to pay interest on significantly late small business payments.