Australian Trucking Association proposes 30-day invoice payment terms

The Australian Trucking Association (ATA) has proposed a 30-day payment deadline for trucking invoices to the Fair Work Commission. This counter-proposal comes as the commission reviews an application from the Transport Workers’ Union (TWU) for a road transport contractual chain order.

The TWU’s draft requires undisputed invoices to be paid within 21 days, provided they are submitted within seven days of work completion. However, the ATA argues this structure would exclude approximately 29 per cent of operators who do not issue invoices within that seven-day window. ATA CEO Mathew Munro stated that a 30-day rule from the date of receipt would be more workable for businesses with different invoicing cycles.

The ATA highlighted significant financial pressures within the sector, noting that 20 per cent of operators who issue their own invoices are typically paid more than 30 days after issue. Munro remarked that these businesses are effectively “operating as banks for their often very large customers.” Additionally, the association reported that high operating costs, particularly fuel, continue to impact the industry, with 62 per cent of respondents citing fuel costs as a major or severe pressure.