Coasties running small businesses could see faster payments from government clients under new rules aimed at improving cash flow and reducing administrative delays.

The updated guidelines, announced by Small Business and Manufacturing Minister Andrew Bayly and Economic Development Minister Melissa Lee, will require government agencies to adopt quicker payment timelines and switch to eInvoicing systems.

Beginning 1 January 2025, around 135 government agencies will need to pay 90 per cent of domestic invoices within 10 business days.

This target will increase to 95 per cent in 2026, with eInvoicing becoming mandatory for agencies managing over 2,000 invoices annually.

Under this digital system, eInvoices will need to be processed within five business days.

“Prompt payment is especially important for small businesses with limited cash reserves,” Bayly explained.

“Government agencies are major clients for businesses across the country, from suppliers of stationery to security services, and reliable payment can be essential for meeting payroll and covering daily costs.”

Economic Development Minister, Melissa Lee

The shift to eInvoicing aims to streamline processing, reducing risks tied to manual data entry and ensuring fewer delays due to human error.

The government estimates productivity savings of NZD 4.4 billion over the next decade as businesses experience faster transactions and less paperwork.

Economic Development Minister Lee added, “Government agencies should set the standard by embracing efficient, tech-driven solutions. With a procurement budget of NZD 51.5 billion, we can leverage these practices to support business innovation, productivity, and growth.”