Late Payment Statistics: New Zealand and Australia (2026)

Published: 6 July 2026 · Updated: 6 July 2026 · By Shane Laurence, Head of Growth at FundTap · Reviewed by David Stephens, Credit and Modelling Manager

Getting paid late is one of the most common cash flow problems for small businesses on both sides of the Tasman. You have done the work and sent the invoice, but the money arrives weeks after it is due, while wages, suppliers, and tax still fall on time. This page pulls together the current numbers for New Zealand and Australia, what late payments actually cost, and the practical options for closing the gap.

How late do New Zealand small businesses get paid?

New Zealand small businesses are paid 4.5 days late on average in the March quarter of 2026, down from 5.2 days the previous quarter and the lowest level since the data series began in 2017 (Xero Small Business Insights, 2026). On top of the late portion, the average time to actually be paid after issuing an invoice is 23.8 days, the best result since late 2021 (Xero Small Business Insights, 2026).

The direction is positive, but "less late" is still late. A payment that is 4.5 days overdue on 30-day terms is money a business planned to have and does not.

The cost adds up across the economy. Late payments are estimated to cost New Zealand small businesses around $456 million per year (Xero, 2026). For an individual business, the cost is less visible but just as real: overdrafts drawn, suppliers paid late, and growth put on hold while cash sits in someone else's account.

How late do Australian small businesses get paid?

Australian small businesses wait about 24.1 days to be paid after issuing an invoice, and invoices are settled an average of 6.9 days past their due date (Xero Small Business Insights, March quarter 2026). Late payments across Australian business reached their highest level in six years in 2026, with more invoices sliding beyond 60 days overdue (CreditorWatch, 2026).

The scale of the problem is wide. Around 80 percent of Australian businesses experienced late or overdue payments in the past 12 months, and payment delays average about 25 days beyond agreed terms (CreditorWatch, 2026). Government data tells the same story: only about 68.9 percent of small business invoices are paid within 30 days, so almost a third are still paid later than a standard month (Payment Times Reporting Regulator, 2025).

Payment disputes are now the single largest category of cases brought to the Australian Small Business and Family Enterprise Ombudsman, at 42 percent of assistance requests in 2023 to 2024 (ASBFEO, 2024).

New Zealand vs Australia: late payments compared

Sources: Xero Small Business Insights (2026), CreditorWatch (2026), Payment Times Reporting Regulator (2025).

The headline: New Zealand is trending better while Australia is trending worse, but in both markets the typical small business is paid late, and the gap between invoicing and getting paid sits at roughly three to four weeks.

Which industries are hit hardest?

In Australia, some sectors carry far more overdue invoices than others. Food and beverage services had the highest rate of invoices more than 60 days overdue at 11.37 percent, followed by electricity, gas, water and waste services at 8.16 percent, and construction at 7.15 percent (CreditorWatch, 2026).

Construction is a familiar pain point in both countries. Long payment chains, progress claims, and retentions mean subcontractors often wait longest of all, even when the head contractor has been paid.

Why late payments hurt more than the number suggests

A few days late does not sound serious until you map it against fixed costs. Payroll does not move. GST and PAYE in New Zealand, and BAS in Australia, fall on a fixed date. Suppliers expect their terms honoured even when your customers do not honour yours.

"Late payment is almost always a timing problem, not a profitability problem," says Matt Peacey, Founder and CEO of FundTap. "The business is healthy, the invoice is real, the money is coming. What is missing is the cash between doing the work and getting paid for it. Close that gap and most cash flow stress disappears."

FundTap's own lending supports the point. Across thousands of funded invoices, the default rate is 0.71 percent (FundTap data, 2026), which means the invoices businesses finance are almost always paid in the end. The issue is when, not whether.

How to close the late-payment gap

There are three practical levers, and most businesses use a mix.

1. Tighten your credit control. Clear terms on every invoice, automated reminders before and after the due date, and a consistent follow-up process recover a surprising amount of overdue cash on their own.

2. Improve your forecasting. A rolling cash flow forecast shows you the gaps before they arrive, so a late payment is a managed event rather than a scramble.

3. Bridge the gap with invoice finance. Invoice finance turns an unpaid invoice into cash now, instead of waiting 30 to 60 days for the customer to pay. With FundTap you choose the individual invoices you want funded, your customers keep paying you as normal with no notification, and there are no lock-ins or monthly fees. You can check your eligibility in minutes by connecting Xero, MYOB, QuickBooks, or Reckon.

Invoice finance does not replace good credit control, it complements it. Chase the payment, and fund the invoice in the meantime so the wait does not cost you a contract, a supplier, or a payroll run.

Frequently asked questions

How late do small businesses get paid in New Zealand?

On average, New Zealand small businesses are paid 4.5 days late in 2026 and wait about 23.8 days in total to be paid after issuing an invoice (Xero Small Business Insights, 2026). That is the lowest late figure since the series began in 2017, but most small businesses are still paid after their agreed terms.

How late do small businesses get paid in Australia?

Australian small businesses wait about 24.1 days to be paid and are settled 6.9 days late on average in 2026 (Xero Small Business Insights, 2026). Late payments across Australian business are at a six-year high, with around 80 percent of businesses affected in the past 12 months (CreditorWatch, 2026).

What do late payments cost small businesses?

Late payments are estimated to cost New Zealand small businesses around $456 million per year (Xero, 2026). For an individual business the cost shows up as overdraft interest, late supplier fees, and lost growth while cash is tied up in unpaid invoices.

Which industries have the worst late payments?

In Australia, food and beverage services (11.37 percent of invoices more than 60 days overdue), utilities (8.16 percent), and construction (7.15 percent) have the highest rates of seriously overdue invoices (CreditorWatch, 2026). Construction subcontractors typically wait longest in both New Zealand and Australia.

How can a small business get paid faster?

The three most effective steps are tighter credit control with automated reminders, a rolling cash flow forecast to see gaps early, and invoice finance to turn unpaid invoices into cash while you wait. Invoice finance such as FundTap lets you fund individual invoices without notifying your customers or signing a long-term contract.

Is invoice finance a loan?

No. Invoice finance advances money you have already earned and are owed, rather than lending you new money against your business. With FundTap there is no fixed repayment schedule and no ongoing debt facility. The advance clears automatically when your customer pays the invoice.