How late Australian businesses really get paid
If you feel like you’re always waiting on money, the numbers back you up. The Payment Times Reporting Regulator says “most small businesses can expect to wait almost double the agreed payment term to be paid.” Its figures cover big businesses paying small suppliers, and construction is one of the slowest industries in the report.
| Measure | All industries | Construction |
|---|---|---|
| Average agreed payment term | 29 days | 33 days |
| Average time to pay | 27.2 days | 30.9 days |
| Invoices paid on time | 68.5% | 67.8% |
| Invoices paid within 30 days | 69.8% | 57.4% |
| Time taken to pay 95% of invoices | 55 days | 62 days |
It isn’t only big companies. Xero’s data shows Australian small businesses were paid an average of 6.0 days late in the June 2026 quarter, and a Xero survey in March 2026 put the average loss from late payments at $15,257 over the last financial year.
Who does what, from deposit to paid
| Step | Who does it | What stays with you |
|---|---|---|
| Deposit before the job goes in the diary | Carol chases it | How much deposit you take |
| Write the invoice when the job’s done | SAM, while you talk it through | What you charge |
| Reminder around the due date | Carol, with the wording you approved | The wording and timing |
| Check what’s been paid | Carol | Nothing, unless something looks wrong |
| Overdue follow-up | Carol, inside the limits you set | When to stop and escalate |
| Dispute, payment plan or discount | Back to you | All of it |
Chasing it yourself, paying someone, or AI staff
| Option | Typical cost | What you get |
|---|---|---|
| Chase it yourself | Your time, usually at night | It happens when you remember, and nobody enjoys it |
| Admin person or bookkeeper | Clerks Award Level 2 from $29.45 an hour, plus 12% super | Follow-up in office hours, if you train them |
| Invoice app reminders | A monthly subscription | Automatic reminder emails. You still make the calls |
| Debt collector | Commission, usually 5% to 30% of the debt | For debts that are already well overdue |
| LeadAI Growth (5 AI staff) | $950 a quarter or $3,040 a year + GST, about $253 a month paid yearly | SAM writes invoices, Carol chases deposits and overdue amounts, plus 3 more AI staff |
Deposits: get it before the job goes in the diary
The easiest money to collect is the deposit, because the customer wants the job booked. Carol chases it before the job goes in the diary. For home building work, only take the deposit your state allows.
| State | Maximum deposit |
|---|---|
| NSW | 10% of the contract price for residential building work. No deposit until home building compensation cover is in place, where it’s required. |
| VIC | 10% if the contract is under $20,000; 5% if it’s $20,000 or more. |
| QLD | 20% for work of $3,300 or less; 10% for $3,301 to $19,999; 5% for $20,000 or more. |
The contact rules every reminder stays inside
You approve Carol’s reminder wording and timing. Keep them inside the ACCC and ASIC debt collection guideline, which applies to businesses chasing their own debts, not just debt collectors. business.gov.au also says to agree payment terms in writing before work starts.
- Phone calls between 7:30am and 9pm on weekdays, and 9am and 9pm on weekends, in the customer’s local time.
- No more than 3 contacts a week, or 10 a month, per account.
- No contact on national public holidays such as Christmas Day, Good Friday and Anzac Day. In South Australia, no calls demanding payment on any public holiday.
- If the customer asks to be contacted a different way and gives you one, use it.
- Only charge interest or a late fee that was in the terms your customer agreed to before the job.
Where your AI staff stop, and you stay in charge
- Disputes: Carol doesn’t argue the bill. A dispute comes straight back to you.
- Discounts and write-offs: only you can reduce or cancel what’s owed.
- Payment plans and refunds: Carol passes the request to you.
- Changes to your commercial terms, including interest or late fees, stay with you.
- Sensitive or unusual account matters come back to you.
- Legal steps, letters of demand, debt collectors and small claims are your decision.
- SAM writes invoices for you and never speaks to your customers.