Late payments are improving across Australia, albeit at a minuscule pace. According to illion's Trade Late Payments Report for the June 2019 quarter released earlier this week, late payments improved from 11 days to 10 days year-over-year, "reflecting improved trading conditions and pressure from the government to cut payment times," states a release.
The most reliable payers were in Tasmania, taking seven days to pay late invoices. Meanwhile, the Northern Territory took 12 days to pay. Agriculture makes up as much as 4% of Australia's gross domestic product, and the industry saw a sharp increase of 26% in late payment time frames.
"Improved late payments overall is encouraging but Australian farmers are facing troublesome conditions," said illion CEO Simon Bligh in the release. "We have noticed a silver lining though, even for farmers, with a small improvement during the quarter indicating that drought relief initiatives are starting to improve farmers' situation," he said. "This is testament to the effective response of Australian governments, businesses and the generosity of the Australian people in helping our farmers through this terrible drought." Communications and fishing also saw increases in payment times.
-Michael Miller, managing editor