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Ombudsman applauds ‘Click for Vic’ but calls for mandatory payment times for large businesses to SMBs

The Australian Small Business and Family Enterprise Ombudsman Kate Carnell has welcomed the Victorian Government’s ‘Click for Vic’ initiative, and is encouraging consumers to carefully consider where their spending is going.

“This is a great initiative by the Victorian Government, and a timely reminder that it has never been more important to spend locally,” Ms Carnell says.

ABF media

“I know things are difficult across the board for a lot of people at the moment, and many don’t have a lot of spare cash to spend.

“But it is really important that we think carefully about where the money we do spend is going.  What might seem like a small amount can make all the difference to a small business deciding whether to open tomorrow, or just making sure they can pay their bills.”

Recent analysis by Deloitte Access Economics suggests that as much as 10% of Australian small businesses may be forced to close when a number of supports cease at the end of September.

“The Deloitte numbers are really sobering, and should be seen as a wake-up call about what we stand to lose,” Ms Carnell says.

“The federal and state governments have provided unprecedented support to businesses, but there’s no doubt that more can be done, and the communities that rely on and enjoy these businesses need to do what they can to ensure their businesses survive.

ABF media

Ms Carnell has reiterated calls for Government to mandate payment times to small business in the wake of large businesses pushing payments to small business out to as much as 180 days.

“I continue to be disappointed in large businesses extending payment times to small business through this period,” Ms Carnell says.

“I have made it clear previously that mandating payment times to small business is the only way to fix this problem, and there has never been a more important time for Government to ensure small businesses get paid on time.

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