Late payment laws › Australia

Australia late payment rules: what applies to freelancers and small businesses

Not legal advice. Every statement below links to the official source it comes from.

Unlike the UK and EU, Australia has no general law that automatically adds interest to late business invoices. Late fees or interest apply if your contract or terms include them. Two regimes are worth knowing.

What the law says

• Construction: each state has Security of Payment laws. In NSW, a payment claim must be in writing, identify the work and amount, and (for subcontractors) state it is made under the Building and Construction Industry Security of Payment Act 1999; payment is due within 15 business days for head contractors and 20 business days for most subcontractors unless the contract says earlier.
  Source: NSW Government: Making a payment claim
• The Payment Times Reporting Scheme requires large businesses to publicly report how quickly they pay their small business suppliers. It is a transparency scheme; it does not itself set a payment deadline for your invoice.
  Source: Treasury: Payment Times Reporting Scheme; Payment Times Reporting Regulator: Key concepts

Use it in your reminder

Mention the rule calmly and factually in your firm or final reminder, e.g. “Under [law], payment was due by [date]. Please pay by [deadline].” Work out the exact amount with the late payment interest calculator.

Related

• Australian letter of demand
• Small claims by state

Other jurisdictions

United Kingdom · European Union · Canada (Ontario) · New York State · New York City · California · Illinois · Los Angeles · Columbus, Ohio · Minneapolis · United States (general)

Not legal advice. This page summarises official sources as of 31 October 2026 for general information; laws change and details depend on your contract and circumstances. Check the linked source or ask a qualified lawyer before relying on it.