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The audit that quietly confirmed WA's payment gap

jack8427
Sep 15
2 min read

Payvio | ~2 min read

WA's government committed to paying invoices under $1 million within 20 days, with no penalty if an agency misses it. That's the gap we wrote about two weeks ago: a promise with nothing behind it if it's broken. This week, WA's own Auditor General gave us a look at whether that promise is actually holding up in practice, and it isn't holding up cleanly.

What the Auditor General found

In its State Government 2025 Financial Audit Results report, published 3 December 2025, WA's Auditor General reviewed the financial controls of 54 WA government entities and confirmed 89 separate control failures across the board, covering everything from cash handling to procurement (Office of the Auditor General). Sixteen of those 89 were specifically about entities not paying invoices within the required 20 days, in breach of Treasurer's Instruction 5. That's sixteen confirmed cases, not suspected or rounding-error slips, where the auditor checked an agency's actual payment behaviour and found it broke its own rule. The report doesn't say which agencies, how many invoices were affected, or by how many days they ran over, but it confirms what WA's own lack of a penalty always implied: without a real consequence attached, some agencies simply won't hit the timeline, and now there's an independent body on record saying so.

Why that matters more than it sounds

Here's the part that actually affects a supplier's cash flow: you don't know in advance whether the agency you're invoicing this month is one of the sixteen the Auditor General flagged. There's no published list, no way to check an agency's track record before you bid, and no penalty clause to fall back on if you turn out to be dealing with one of them. You're extending 20 days of credit on faith, to a system that its own auditor says isn't consistently keeping that promise. If that invoice runs long, the cost doesn't land on the agency, it lands on you: an overdraft draw, a delayed order to your own suppliers, or capital that isn't there for the next job you'd otherwise bid on.

Where Payvio fits

That uncertainty is exactly the problem transaction credit is built to remove. Payvio is transaction credit: instead of betting on which agencies actually hit their own 20-day target this year, you get paid regardless of the answer. If you're supplying into WA state tenders:

  • You're paid within 24-48 hours of invoice approval, assessed on that invoice, on your own terms, whether or not this particular agency is one the Auditor General flagged.

  • Your relationship with the agency doesn't change. Their terms stay theirs, and settlement still lands on the invoice's original date.

  • Your cash flow stops depending on an agency's internal payment controls holding up, audited or not, this quarter or any other.

Sources: Office of the Auditor General for Western Australia, State Government 2025 – Financial Audit Results (3 December 2025).


 
 
 

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