In most instances, Government agencies have reasonably consistent, standard payment terms, however ensuring your business both understands and can adhere to their terms should be considered during your assessment of the opportunity.
Government agencies generally have 30 day payment terms from receipt of invoice. The South Australian Government is a prompt payer and penalty interest can be paid to suppliers where payments are late.
In order for payments to occur, the government buyer will need to make sure the invoice matches both the order and what was delivered. Approvals are then sought from the relevant senior officer in order for payment to be made.
With this in mind, it is highly recommended that your payment terms align with government’s preference of 30 days when drafting your bid response.
Quick Tip - For lower value purchases below $1000, payment can be made by purchase card (Government Credit Card), so if your business does not offer this facility, you may wish to consider offering this payment method
Helpful Resources
Invoice Tracking
Shared Services SA offers a facility that allows you to track your invoices. This can be a helpful tool for managing and monitoring government payments.
