Part 2 - Payment card policy for payments valued below $10,000

This page refers to payments for purchases of goods and services with a total invoice value below $10,000. It does not apply to part payments made or invoices issued under contracts with a total value of $10,000 and above. For further information, see the definition of eligible payment.

NCEs must pay via a payment card where the:

  • payment is an eligible payment and valued under $10,000  (inclusive of GST and merchant service fees)
  • the supplier can accept and request payment via a payment card.
  • merchant service fees charged to the NCE are reasonable for the type of card being used and are sufficiently disclosed prior to payment being made. 

NCEs should consider paying suppliers via a payment card, but may reasonably seek to pay via an invoicing arrangement when:

  • amounts owed are at, or above, $10,000
  • paying incremental or milestone payments, irrespective of whether the collective value of the payments is below $10,000
  • the supplier requests payment via an invoicing arrangement
  • the supplier seeks payment through non-widely recognised payment cards
  • paying other Commonwealth entities
  • paying overseas-based suppliers 
  • paying third-parties on behalf of the NCE.

NCEs must, to the extent practicable, provide suppliers an opportunity to request payment via a payment card for amounts below $10,000. 

NCEs must make payment via a payment card where requested by a supplier for eligible payments. Where practicable, payment should be made at the point of sale. A tax invoice (receipt) must be provided by the supplier for the payment.  

The policy does not require payment by NCEs on disputed amounts. Where an amount is disputed, the NCE may request to make payment after receiving an invoice. 

NCEs are responsible for ensuring that relevant internal guidance is maintained to give effect to the policy.

The policy requires NCEs to establish and maintain internal policies and processes to facilitate the timely payment of suppliers through payment card processes. This includes processes to promote payment cards as a preferred option for eligible payments to suppliers valued below $10,000.

NCEs may choose to extend this policy to non-eligible payments or payments above $10,000 in line with their business needs.

Suppliers may be unaware of the preferred payment option and reasonable efforts should be made to make them aware of the opportunity. This should occur prior to receiving goods or services.

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