Payment times data from the Payment Times Reporting Regulator, CreditorWatch, and ASIC's business indicators research provides a clear picture of which Australian industries are paying their suppliers promptly and which are creating persistent cash flow stress for trade creditors. The 2026 data — drawn from regulated large business reporting and commercial credit bureau insights — shows some familiar patterns and some sector-specific deterioration.
The overall picture
Average payment times across the Australian economy remain extended relative to stated terms. Businesses reporting under the Payment Times Reporting Act 2020 (Cth) — those with annual turnover above $100 million — report average payment times of 37–40 days against typical 30-day terms. This means the average small business supplier to a large Australian business is receiving payment approximately one week late on average. The distribution matters more than the average: a material proportion of invoices are paid at 60 days or beyond.
Slowest-paying sectors in 2026
Construction and engineering
Construction continues to record the longest average payment times of any major sector. Subcontractors regularly report payment in excess of 60 days, and for some, effective payment times exceed 90 days once retention and disputes are included. Project finance structures, milestone-based cash flows, and principal-contractor-subcontractor payment chains all contribute to the delay. The Security of Payment legislation in each state is specifically designed to address this, but uptake remains lower than it should be.
Retail trade
Large retail businesses — supermarkets, department stores, specialty chains — are among the slowest payers to their product suppliers. The PTRS data confirms that retail sector payment times have not improved materially despite increased regulatory scrutiny. Supplier contracts that allow extended payment terms (60–90 days) to large retailers are common, and smaller suppliers often accept these terms to access retail distribution.
Mining and resources
Mining services businesses — suppliers of equipment, maintenance, logistics, and professional services to major mining operators — report payment times that vary significantly by client. Tier one miners have improved under Payment Times Reporting obligations; second-tier and third-tier miners and their contract operations show more variable payment behaviour.
Government
Commonwealth and state government agencies have improved payment times significantly under various prompt payment commitments (the federal government's 20-day small business payment target, for instance), but performance varies significantly between agencies and between jurisdictions. Local government can be a particularly slow payer in some states.
Fastest-paying sectors
Professional services (legal, accounting, consulting) and financial services businesses typically pay suppliers more promptly than the economy average. Technology and SaaS businesses also tend to have shorter payment cycles, partly because their supply chains are dominated by non-trade procurement.
Implications for credit management
Industry-specific payment norms should inform credit limit setting and follow-up timing. A construction sector customer on 30-day terms who pays at 50 days is behaving normally for their industry — not ideally, but not necessarily a default risk. The same behaviour from a professional services customer would warrant earlier escalation.
Contact Merion about industry-specific credit management approaches — the right escalation timing depends on the sector you are supplying.