The Australian Government is set to offer support to defence companies in the country during the global coronavirus (Covid-19) pandemic by providing funding.
It is also providing fast-tracked payments to help Australian companies through the coronavirus pandemic.
This step has been taken to help mitigate the effects and unprecedented challenges caused by the outbreak.
Under the initial assistance, some suppliers will receive payment up to two weeks earlier than usual.
Approval of an invoice by the defence department will follow immediate payment to Australian suppliers. Payments will be processed irrespective of the contracted payment terms.
Additional measures in place include reinforcing the key role played by the prime contractors’ sub-contractors to ensure prompt payment across the supply chain.
Relief will be provided to contractors in adverse circumstances due to Covid-19. This will include the supply of labour, equipment, materials or services required to continue operation.
Australia Minister for Defence Linda Reynolds said: “Defence industry makes an important contribution to our economy, our security posture and our safety.
“That is why we brought forward the payment of more than $500m to businesses in Australia, which ensures money is flowing into the Australian economy at a time of acute pressure.”
With 35,000 Australians employed in the defence industry, the government ensures industry personnel in the country are supported. This would also equip and sustain the Australian Defence Forces (ADF).
Capital facilities and infrastructure works will be delivered across the country to support existing and new capabilities.
Under the construction contracts, clauses have been amended and implemented to provide time and cost relief due to the impacts of the virus.
Australian Minister for Defence Industry Melissa Price said: “Australian small businesses are the backbone of our defence industry and we will continue to do everything we can to relieve the current pressures they’re under.
“Minister Reynolds and I are speaking today with major defence companies and industry groups to hear how we can further assist and provide support to Aussie workers and small businesses in our defence industry.”
Source: Army Technology