The Australian Trucking Association (ATA) is calling for a maximum 30-day payment term for trucking invoices as the Fair Work Commission considers a proposed road transport contractual chain order.
The ATA says the change would give operators more certainty around cash flow and prevent businesses from being left waiting extended periods for payment.
According to survey research submitted by the ATA, 20% of operators who issue their own invoices are typically paid more than 30 days after invoicing.
ATA CEO Mathew Munro said transport businesses should not be expected to effectively finance their customers while continuing to cover fuel, wages, maintenance and other operating costs.
ATA Pushes Back on 21-Day Proposal
The Transport Workers’ Union has proposed a 21-day payment term, but the protection would generally apply to invoices issued within seven days of the work being completed.
The ATA argues this could exclude a significant number of operators.
Its survey found 29% of respondents did not issue invoices within seven days of completing the work.
Instead, the ATA wants invoices paid within 30 days of being received, regardless of when they are issued.
For recipient-created tax invoices (RCTIs), the ATA has proposed a 14-day payment deadline.
Late Payments and Rate Reviews
The ATA is also calling for low-cost debt recovery options and a default interest rate on overdue payments.
Its submission also supports regular rate reviews, including:
- Annual reviews of transport rates
- Quarterly fuel-cost reviews where no fuel levy or surcharge applies
- Consideration of changes to tolls, road user charges and port access charges
The aim is to provide a clearer mechanism for rates to keep pace with changing operating costs.
What Happens Next?
The Fair Work Commission is preparing to hear the application for the proposed contractual chain order.
No new payment requirements are in place yet, and the final order may differ from both the ATA and TWU proposals.
However, with payment terms, fuel costs and other operating expenses continuing to put pressure on transport businesses, the outcome will be one worth watching.
Read the press release from the ATA here.
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