Payment terms for small businesses
Shell Australia is a signatory to the Australian Supplier Payment Code, ensuring that small business suppliers are paid promptly and on time.
Shell Australia understands the impact of poor payment practices and lengthy payment terms affecting small businesses. For this reason, Shell Australia offers 30 days payment terms with small businesses entering our supply chain since November 2017, an exception to Shell’s global policy of 60 days payment terms that is in effect for all our Tier 1 contractors.
Shell monitors our payment-on-time performance very closely and is in excess of 95% payment made on time across our supply chain in Australia. We do note, however, that on top of contractually mandated payment times, actual payments depend on both parties including, but not limited to, correct and timely submission of invoices. Hence, we urge our suppliers to contact their assigned focal points so payment issues can be addressed swiftly.
Shell Australia’s standard terms and conditions for Purchase Orders can be found via this link, which is also visible on our Purchase Orders – https://www.shell.com/business-customers/shell-for-suppliers/purchase-order-general-t-s-and-c-s.html.
In addition to the procedures outlined in the Agreement or Purchase Orders that Shell has with suppliers, all vendor payment-related queries can be directed to firstname.lastname@example.org.
Shell Australia defines small businesses as those having 20 employees or fewer and has a work value to Shell of less than AUD$300,000 or AUD$1,000,000 (for contracts with a period longer than 12 months). This policy of 30 days payment term also extends to indigenous-owned businesses and regional businesses based in our operational footprint across six regional councils in Queensland, four shires in Western Australia and the city of Darwin in the Northern Territory.
More information about the Australian Supplier Payment Code is available here
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