SME Highlights

Be empowered to ask for reasonable payment times

Long payment times can have a significant impact on small business, particularly as the economy collectively works to recovery from the economic impacts of COVID-19. Faster payment times benefit small businesses, their supplies, and in turn encourage ongoing engagement from both small business and big business in projects.

Government clients across Australia recognise this and have been bringing payment times down for suppliers. On 1 January 2021, the Payment Times Reporting Act 2020 (Cth) also come into force. The Act outlines the obligations of certain large businesses to report biannually on their payment periods to small business. The scheme creates greater transparency for small businesses on larger business payment performance.

While the Act does not require big businesses to pay small businesses within a certain period, Consult Australia encourages small business members to request a 30day payment time from your clients. This is especially the case when you are a subconsultant where the government client is paying the head contractor within 30-days.

This is a reasonable time frame for the payment of consultants which is supported by:

• the Commonwealth Government in the

Explanatory Memorandum to the Act as a benefit to both small business and the economy in general

• the Australian Standard 4122-2010 General

Conditions of Contract for Consultants which was developed collaboratively with representatives from government, consultant businesses and contractors.

• the Consult Australia Contract.

Read more in our recently published Member Briefing on Payment Times, available under ‘Business Services’ of our website.

Release of the Insurance Inquiry Final Report by the Small Business Ombudsman

The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) recently released its Insurance Inquiry Final Report which found widespread market failure in regard to the availability and affordability of essential small business insurance products. The final report makes a suite of recommendations designed to rebalance risks taken on by insurers and make small business insurance products more accessible.

In terms of professional indemnity insurance, the recommendations include a call on the Commonwealth Government to provide an insurance scheme of last resort for small business. While Consult Australia supports this recommendation, we continue to advocate for action on de-risking the market.

First SME Open Forum for 2021

Thanks to the small business members who joined our first 2021 SME Open Forum on 3 February 2021. As usual, insurance was a hot topic, with Nicola and Kristy able to update members on recent meetings including with Lloyds of London. We also talked mental health and how growing businesses tackle the challenges of remote working and keeping people engaged especially in terms of career progression. Finally, we discussed the burdens on business of separate registration schemes soon to be introduced in NSW and VIC and the work Consult Australia is doing with the Department of Prime Minister and Cabinet to realise a drivers’ licence scheme.

The next SME Open Forum will be on 7 April 2021 – keep an eye out for your email invite. This is your chance to talk direct to Consult Australia's Board President, CEO and Policy Team. With no set agenda, SME members can raise in the forum any and all concerns and questions.

Be engaged, get value!

To best way to get value from your membership is to engage with Consult Australia, be it through events and education, by responding to calls for input or just contacting your State/Territory Manager to vent about current business frustrations. Here are some of our SME members that have already been active in 2021: