Queensland Government payments to small businesses
The On-time Payment Policy ensures that small businesses who supply goods and services to the Queensland Government are paid within 20 calendar days.
Should the small business not receive payment within 20 calendar days they can submit a claim for penalty interest. This only applies to correctly rendered undisputed invoices.
Register your details on the On-time Payment Small Business Register to enable your business to be paid within 20 calendar days.
Contact us if you need help completing the online form.
Who is eligible?
A small business is defined as an entity that employs less than 20 employees.
Make a claim for penalty interest
If you don’t get paid within 20 calendar days you can submit a claim for penalty interest with the department you supplied goods or services to.
Claims only apply to correctly rendered, undisputed invoices.
Read the Queensland Government On-time Payment Policy for more information.
How penalty interest is calculated
Interest will be paid at the unpaid tax interest (UTI) rate, which is 12.36% for the 2024–25 financial year.
Interest is applicable after 20 calendar days up until payment is made. For example, if payment is made 25 calendar days after the invoice date, interest is owed for the 5 calendar days that the payment was late.
The minimum payment that will be made for penalty interest is $20.
Exemptions to the On-time Payment Policy
There are some general exemptions to the policy, including reporting and penalty interest requirements.
Read the Queensland Government On-time Payment Policy for more information.
Department-specific exemptions
The following Queensland Government departments have specific exemptions from the On-time Payment Policy.
-
Exemptions Reason for exemption Arrangements where there is agreement with vendors for bulk payments (for example, on a monthly basis) Local arrangements between suppliers and the department where suppliers issue invoices for goods and services during a month but forward for payment at end of month trading. -
Exemptions Reason for exemption Payments from Research Development Corporations Terms and conditions of payments are established and administered via individual contractual arrangements. Payments related to National TSEs Surveillance Program Terms and conditions of payment are established and administered via individual criteria. -
Exemptions Reason for exemption Arrangements where there is agreement with vendors for bulk payments (for example, on a monthly basis) Local arrangements between suppliers and the department where suppliers issue invoices for goods and services during a month but forward for payment at end of month trading. Arrangements where there is agreement with vendors for bulk payments (for example, on a monthly basis) Local arrangements between suppliers and the department where suppliers issue invoices for goods and services during a month but forward for payment at end of month trading. Where the payment of the bulk account is reliant on the supporting information being provided by the supplier in a timely manner. Backdated invoices (goods or services, delivered or completed in the past with the date of completion of supply or delivery greater than 30 days) Invoices must be provided in time to be paid on time. Grant and Service Procurement Agreement payments, contracts, donations, sponsorships Terms and conditions of payments are established and administered via individual Grant or Service Procurement agreements, or other contractual Agreements. These terms and conditions allow for payments to be made when milestones have been achieved in line with the requirements of the agreement, when acquittals submitted have been reviewed and accepted, and other agreement or contractual conditions (e.g. supply, costings, delivery, retentions, completeness of works performed etc.) have been met. Invoices paid using a government corporate credit card Invoice details are not recorded within a distinct data field in the Corporate Card system, thereby limiting the extraction of data for review purposes. -
The Department of Education has exemptions that apply to particular entities (e.g. universities) and certain payment transactions.
Entities exempt from the On-time Payment Policy
Exemptions Reason for exemption - Queensland College of Teachers
- Board of Trustees for Brisbane Girls', Brisbane, Ipswich Girls', Ipswich, Rockhampton Girls', Rockhampton, Toowoomba and Townsville grammar schools
- Central Queensland University
- Griffith University
- James Cook University
- Non-State Schools Accreditation Board
- Queensland Studies Authority
- Queensland Tertiary Education Foundation
- Queensland University of Technology
- University of Queensland
- University of Southern Queensland
- University of Sunshine Coast
- Corporation of the Minister
- Parents and Citizens' Associations
Statutory Authorities that have been exempted from the Policy.
Transactions exempt from penalty interest payments
Exemptions Reason for exemption School invoices where the late payment calculation date falls within or 3 working days either side of gazetted school holiday periods
School staff are required to take leave during the school holiday periods and therefore would have no ability to process the payment of the invoices during these periods.
Corporate card payments at point of sale
Payment is made by the merchant to the supplier listed on the invoice.
Recipient-created tax invoices
The invoice date for these invoices is often determined by the agency at the time of payment.
Payments to parents
These payments are generally made as a result of a refund.
Payments for homestay arrangements
Payments made under specific arrangements.
Payments through upload of bulk accounts
These payments are not captured in the late payment monitoring reports as they are classified with a separate indicator in Department of Education's financial system and are mixed with other uploaded payments such as grants.
-
Exemptions Reason for exemption Subsidy payments Subsidy and incentive payments are made on the basis of agreements which contain specific terms and conditions. In addition, funding agreements also reference service delivery and program specific obligations that the department must be satisfied have been met before payment can be made. Payments made under the following Acts and arrangements to the extent that they apply to the procurement of government building construction and maintenance projects and programs: - Building Industry Fairness (Security of Payment) Act 2017 (BIF Act), Queensland's security of payment legislation for the building and construction industry
- Queensland Building and Construction Commission Act 1991 (QBCC Act)
- The State's whole-of-Government standard form contracts issued under the Building Policy Framework
The stated Acts and contracts to the extent that they apply to procurement of government building construction and maintenance projects and programs, should take precedence over the On-time Payment Policy with respect to government building construction and maintenance procurement. Specifically: - progress payments for the carrying out of construction work, or the supply of related goods and services, are governed by the BIF Act, which establishes a procedure for making payment claims, responding to payment claims, the adjudication of disputed amounts and the recovery of amounts claimed.
- the BIF Act also allows subcontractors to secure a charge on money payable to the contractor by the principal. The principal, in consultation with DHLGPPW Contract Services, may be required to retain money the subject of charge, which may affect payment timeframes to the contractor.
- the QBCC Act regulates some matters in relation to building contracts, including mandatory and prohibited conditions, retention amounts, and void payment provisions.
- the State's whole-of-Government standard form contracts mandate payment terms.
Arrangements where there is agreement with vendors for bulk payments (for example, on a monthly basis) Local arrangements between suppliers and the department where suppliers issue invoices for goods and services during a month but forward for payment at end of month trading. Where the payment of the bulk is reliant on the supporting information being provided by the supplier in a timely manner. -
Exemptions Reason for exemption Coronial payments Coronial investigations and associated costs are often dated from time of death, rather than the date the invoice is raised. Invoices paid using a government corporate credit card Invoice details are not recorded within a distinct data field in the Corporate Card system, thereby limiting the extraction of data for review purposes. Payments through upload of bulk accounts Local arrangements between suppliers and the department where suppliers issue invoices for goods and services during a month but forward for payment at end of month trading. Recipient-created tax invoices The invoice date for these invoices is often determined by the agency at the time of payment. -
Exemptions Reason for exemption Arrangements where there is agreement with vendors for bulk payments (for example, on a monthly basis) Local arrangements between suppliers and the department where suppliers issue invoices for goods and services during a month but forward for payment at end of month trading. Where the payment of the bulk is reliant on the supporting information being provided by the supplier in a timely manner. -
Exemptions Reason for exemption Land compensation payments Claims are governed by legal processes, beyond 30 days. Grant and Contractual Agreements Terms and conditions of payments are established and administered via individual Grant or contractual Agreements. These terms and conditions allow for payments to be made when milestones have been achieved in line with the requirements including acquittals submitted to be reviewed and accepted. The department must be satisfied that all obligations have been met before payment can be made. -
Exemptions Reason for exemption Contractual disputes (supply, costings, delivery, retentions, completeness of works performed etc.) Invoices presented after dispute resolution must have a current date. Backdated invoices (goods or services, delivered or completed in the past with the date of completion of supply or delivery greater than 30 days) Invoices must be provided in time to be paid on time. -
Queensland Health has exemptions that apply to certain payment transactions.
Transactions exempt from penalty interest payments
Exemption Reason for exemption Invoices paid using a Government Corporate Credit Card
- Department transaction limit on 97% of corporate credit cards issued to staff would not normally entitle an interest penalty payment based on current thresholds.
- Specific details of each invoice are not captured in the primary financial reporting system (SAP) used by Queensland Health resulting in delays in the assessment.
Invoices submitted via a bulk account arrangement with the supplier
- Where an arrangement between Queensland Health and a supplier results in invoices being provided over a defined period (e.g. monthly) for charges incurred during that period.
- This exemption reinforces this existing principle as defined as the calculation date in the On-time Payment Policy.
Invoices initiated or identified as outstanding by Queensland Health as part of normal business operations. These include:
- the review of supplier provided statements listing invoices outstanding during a period
- investigations into discrepancies where goods and/or services have been provided but no invoice has been received.
- Investigations made by Queensland Health staff to resolve discrepancies in statements or financial records would ordinarily result in an invoice date being adjusted to reflect the date of receipt of the invoice.
- This exemption reinforces this existing principle as defined as the calculation date in the On-time Payment Policy.
-
Exemptions Reason for exemption Invoices submitted via a bulk account arrangement with the supplier An arrangement between the department and a supplier results in invoices being provided over a defined period (e.g. monthly) for charges incurred during that period.
Reporting and publishing payment information
Queensland Government departments are required to publish payment performance data on the Open Data Portal each quarter. No information that will identify you or your business will be listed.
The Queensland Government is currently working to deliver a new 5 Business Days On Time Every Time Payment Guarantee and immediate payments under $10,000. The On-time Payment Policy will continue to apply until this new policy is implemented.
Also consider...
- View an example of a standard invoice – including all relevant information will ensure your invoice is processed efficiently when supplying to government.
- Read the Queensland Government On-time Payment Policy for more information on eligibility, exemptions, and calculating the interest penalty.
- Read the Queensland Small Business Procurement Commitment – Action statement to find out more about how the Queensland Government is supporting small businesses to supply to government.
- Learn more about Queensland Government billing enquiries.