Late Payment of Government Debts (Interest) (Review) Amendment Bill

Second Reading

Adjourned debated on second reading.

(Continued from 29 August 2024.)

The Hon. H.M. GIROLAMO (12:05): I rise in support of the Late Payment of Government Debts (Interest) (Review) Amendment Bill. The public sector, including us as members, have the privilege of security and comfort when it comes to getting paid for the work we do. When a public servant notices a difference in their payslip, particularly when it is less than expected, it can be disheartening; however, they have a payroll team to go to. Whilst they may have to wait up to a fortnight for their concerns to be addressed, it will be redeemed.

As a former small business owner, with many friends and family who are within the small business community, I know that it can be a very daunting but exceptionally brave decision to start your own business. All small business owners often experience insecurity and discomfort when they are not paid for the hard work they do, including the delivery of goods and services. With 118,000 small businesses in Greater Adelaide, and 36,000 in our regions, small and family business are the beating heart of our state.

I was pleased to read the contribution from the Hon. David Pisoni MP in the other place, reflecting on his time as a small business owner for 22 years. The honourable member received rather simple but astute advice when he first started out, namely, 'Make sure you get paid, and if you don't get paid you won't be in business,' and it is completely true. Cashflow for a small business is paramount. If you cannot afford your supplies, your staff, your rent, you cannot provide your service. Running your own business is one of the hardest things you can do, and the money running someone's business is usually the same money business owners need to live, to pay their own rent, to pay their bills and to pay themselves.

As a former accountant—someone who enjoys numbers more than most—I understand the importance of finances in businesses. For many small businesses, particularly sole traders, a profit and loss statement, balance sheet and cashflow do not always come naturally. Financial literacy is something I am extremely passionate about, and something on which I would like to see further support for businesses in our community to enable them to thrive, and something that I believe should be more widely accessible.

This amendment will mean that government, which always has cashflow, can pay businesses for the work they have contracted to do, on time and within a reasonable timeframe. This bill's primary purpose is simple: to require the government to pay invoices within 15 days instead of the current 30-day wait. Getting paid on time can be the difference between keeping the business alive and closing up shop. It can mean paying bills on time, paying rent on time, or paying a late electricity bill before the power is disconnected. Getting paid on time can mean your kids get the Christmas presents they have been waiting on.

This amendment bill is quite timely, given the recent reports of contractors not being paid within the current 30-day period by this government. I will be watching the effects of this amendment closely and hope to see the benefit for business. I also commend the additional amendment to extend the decreased payment terms for not-for-profit entities. Small businesses are the beating heart of our state, and not for profits are the kind-hearted that support our most vulnerable. With that, I commend the bill.

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector) (12:09): I thank the speaker for her contribution on this debate and this important bill and I look forward to the committee stage and passing a bill that will benefit many South Australian businesses.

Bill read a second time.

Committee Stage

Bill taken through committee without amendment.

Third Reading

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector) (12:11): I move:

That this bill be now read a third time.

Bill read a third time and passed.