Unfair Gaps🇦🇺 Australia

Government Relations Services Business Guide

27Documented Cases
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All 27 Documented Cases

Verzögerte Zahlungseingänge durch manuelle Retainer-Rechnungsstellung

Quantified (logic-based): 10–20 extra Days Sales Outstanding on government retainers; for AUD 2m annual retainer revenue this ties up ≈AUD 55k–110k in working capital and costs ≈AUD 8k–16k per year at a 10–15% cost of capital; for larger firms (AUD 10m+ to government) the working-capital cost can exceed AUD 40k–100k per year.

Under the Australian Government’s eInvoicing program, Commonwealth entities are required to be able to receive Peppol eInvoices and are moving to make eInvoicing the default for procurement, with a 5‑day payment term under the Supplier Pay On‑Time or Pay Interest Policy for eInvoices.[3][4] When government relations firms continue to send manual PDF or email invoices for monthly retainers and pass‑through expenses, agencies must manually validate scope, period, GST, and contract alignment before payment. This increases error rates and leads to back‑and‑forth queries, resulting in payment delays beyond standard 30‑day terms and the loss of 5‑day fast‑pay benefits available for compliant eInvoices. Given government charging frameworks are built around recovering efficient costs with clear documentation of charging arrangements and invoicing,[1][2] any deviation or ambiguity in retainer billing (wrong rate, period, or missing backing documentation for expenses) can cause invoices to be put on hold. Logic‑based estimation: if a firm bills AUD 2m per year in retainers to government and averages a 15‑day avoidable payment delay versus eInvoicing‑enabled 5‑day terms, and finances this gap at a 10% cost of capital, this ties up roughly AUD 82k of working capital (2m * 15/365) with an annual financing cost around AUD 8k. For larger firms with AUD 10m+ government exposure, the implicit financing cost of slow time‑to‑cash can reach AUD 40k–100k per year.

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Lobbyist Registration Non-Compliance Penalties

AUD 5,000-50,000 per incident in lost billable hours (20-100 hours at AUD 250/hr); full deregistration causes 1-3 months revenue loss (2-5% quarterly revenue)

Unregistered lobbying results in automatic exclusion from government interactions, halting revenue-generating activities. Multiple jurisdictions (federal, NSW, SA, etc.) multiply compliance burden.

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Zins- und Vertragsverluste wegen Nichteinhaltung der Regierungs-Zahlungs- und Rechnungsrichtlinien

Quantified (logic-based): Forgone interest or price-adjustment leverage of ≈0.4–0.8% of delayed billings annually. For AUD 5m annual government revenue with frequent 20-day overruns, this is ≈AUD 20k–40k per year in implicit loss; additional 1–2% fee write-offs in disputed cases can add ≈AUD 20k–40k on AUD 2m affected revenue.

The Supplier Pay On‑Time or Pay Interest Policy for Australian Government entities sets expectations that valid invoices, especially Peppol eInvoices, are paid within short terms (5 days for eInvoices), with agencies potentially liable to pay interest on late payments.[4] However, an invoice must be compliant and valid under government procurement and charging rules to trigger these obligations. If a government relations firm’s retainer and expense invoices are incomplete, inconsistent with charging documentation under the Australian Government Charging Framework, or not aligned to contract terms, agencies may classify them as invalid or in dispute, resetting payment clocks and avoiding interest.[1][2][4] The firm then faces extended delays without compensation, bearing the financing cost and, in some cases, accepting discounts or write‑offs to resolve disputes. Logic‑based estimation: where contractual terms allow for interest on late payment at commercial rates (e.g., ~8–10% per annum) but this is not enforced or is practically avoided due to invoice non‑compliance, a firm with AUD 5m of annual government billings and recurring 20‑day payment overruns could forgo AUD 20k–40k per year in potential interest or price‑adjustment leverage. In addition, disputes sometimes result in negotiated fee reductions of 1–2% on affected engagements, which on AUD 2m of contentious billings equates to AUD 20k–40k of direct revenue loss.

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Unverrechnete Lobbying‑ und Koordinationsleistungen

Quantified (logic): For campaigns with contracted fees of AUD 200,000–1,000,000, 5–15% of effort typically goes unbilled due to scope creep and missed time capture, equating to AUD 10,000–150,000 revenue leakage per campaign for the lead agency or consulting firm.

Public relations and government relations services in Australia constitute a sizeable market, with the PR services industry alone estimated at around AUD 650–700 million in annual revenue and hundreds of active firms.[1] In coalition‑based advocacy, scopes evolve quickly as additional stakeholders join, new talking points are required, and extra briefings with ministers or departments are scheduled. When activity tracking relies on manual calendars and informal email threads, a significant share of additional effort is never entered into time‑recording systems or change‑order requests. Given that consulting and advisory engagements in Australia often involve capped fee arrangements or blended retainers, these untracked hours directly reduce realised revenue and margins for agencies and boutique consultancies.

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