The Institute of Public Accountants (IPA) has voiced its support for the proposed legislation to ensure payment within 30 days to small businesses.

“The IPA has long advocated for responsible timely payment to small businesses.  Too often, small business cash flow is held to ransom by the failure of big businesses to pay small business invoices in a timely manner,” said IPA chief executive officer, Andrew Conway.

The proposed legislation caters for instances where a contract is entered into between a business with $10 million or less annual turnover and a big business of $25 Million or more turnover, or a government agency.

“The commercial world is still lagging behind Government agencies which are required to pay within 30 days or else interest must be paid.

“Healthy cash flow provides ongoing incentive to reinvest in their businesses; which extends the economic benefit of growth and the capacity to employ,” said Mr Conway.