The ATA supports the proposed Payment Times Reporting Framework, but calls on the Australian Government to take stronger action.
The proposed framework seeks to address the issue of late payments from large to small businesses. It would make the payment practices of large businesses visible.
Trucking is a small and family business industry, which is characterised by tight margins. Many of the costs incurred by trucking businesses must be met before they can bill their customers (such as wages and fuel).
Ultimately the Government has not provided evidence that the Reporting Framework will be successful, and it should be backed with stronger action:
- In addition to the framework, the Government should develop a mandatory code for the trucking industry to address payment terms
- The Government should set targets for improvements in payment times to be achieved under the framework. If these are not achieved, the Government should legislate 20 day payment terms.