Government to pay small businesses interest on late payments by it

The Government has introduced the Late Payment of Government Debts (Interest) Bill 2007.

The objects are:
"(a) improve the payment culture of government by penalising late payments of its commercial debts to small businesses; and
(b) compensate small businesses for the impact on their cash flow of receipt of late payment of government debts."

The Government would pay interest at the same rate as is currently paid to it in relation to tax.

The definition of "small business" is the same as for "small business entity" used in the Tax Laws Amendment (Small Business) Bill 2007:an aggregated turnover for the previous year of less than $2 million.