Purpose
This Procurement Policy Note sets out the Australian Government’s updated policy on payment timeframes for invoices issued under procurement contracts that are subject to the Commonwealth Procurement Rules (CPRs).
Under the policy, non-corporate Commonwealth entities (NCEs) must pay suppliers within the new maximum payment terms of 10 business days for all forms of invoices.
The policy is mandatory for all NCEs. Corporate Commonwealth entities are strongly encouraged to apply the policy.
Scope and application
The updated payment terms will take effect on 1 January 2027. Until then, current payment terms will remain in effect.
Resource Management Guide 417 - Supplier Pay on-Time or Pay Interest Policy (RMG 417) will be updated from this date to provide updated guidance on the application of the policy.
The updated payment terms and RMG 417 will also support the Government’s eInvoicing by default policy. Details of this policy are available on the Australian Taxation Office’s website on the eInvoicing for government page.
Entities are expected to implement the policy and amend internal processes prior to policy commencement.
The updated RMG 417 is available below or through the current RMG 417 webpage.
Resource Management Guide 417 - Application of the Supplier Pay On- Time or Pay Interest Policy
