South Australian government departments which fail to pay their bills on time will be hit with automatic penalties.
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Departments will pay penalties where the contract is worth up to $1 million and the amount has been outstanding for more than 60 days, Premier Steven Marshall said on Thursday.
"There is no excuse for the state government putting the livelihood of small business operators and their employees at risk by stringing out payment," Mr Marshall said.
When a government doesn't pay bills on time, it creates a ripple effect throughout the economy, with small businesses having to delay wages to their own staff, he said.
"Ensuring state government departments automatically incur penalties for late payment of bills will sharpen up the settling of accounts and cut red tape for businesses dealing with the bureaucracy," Mr Marshall said.
The newly-elected premier said the previous Labor government had racked up $470 million in outstanding payments in 2017.
The Liberals were recently elected on a reform agenda, promising to deregulate shop trading hours, cut payroll tax and cap council rates.
Australian Associated Press
