Australian businesses paying their bills in record time
Payment times for Australian businesses have improved by 10 per cent year-on-year to 10.5 days, the best level for March late payments on record. This suggests that business confidence is improving. Comparing payment patterns across the country, Tasmanian businesses take just eight days to pay their overdue bills, while firms in the Northern Territory are relative laggards, at 12 days.
“The low interest rate climate is currently aiding corporate cash flows, which is a critical element that is contributing to lower levels of late payments. Business costs are also being contained, with labour costs being held back in line with weak wages growth. These lower costs are feeding into improved profits and lower late payments.”
Stephen Koukoulas, illion Economic Adviser