Victorian Chamber of Commerce and Industry Chief Executive Mark Stone AM today said the new voluntary Code would make a big difference for many operators who need to settle their outstanding balances before they can take on new jobs.

The Victorian Government announced that the measure will come into effect on 1 July 2017, to help small businesses who need the cash flow to stay operating.

“At the Victorian Chamber, we hear from small businesses that this is a big problem that effectively halts all work for months at a time,” he said.

Mr Stone said that late payment of invoices causes cash flow problems that are felt across the economy, obstructing growth and job creation.

“Suppliers are servicing a business and have the right to be treated fairly and get paid within a reasonable time period. We all need to support our small businesses and paying them what they are owed within 30 days is very reasonable,” he said.

“We welcome the Victorian Small Business Commissioner’s role in administering the Code of Practice and hope all businesses will voluntarily pledge to pay suppliers on time, communicate clearly with them, resolve disputes quickly and fairly and adopt fair payment processes.”

For more information on the new Code visit www.vsbc.vic.gov.au.