What will happen if the payment is not settled by the settlement due date?

What will happen if the payment is not settled by the settlement due date?

⚡Quick answer

If an agent fails to claim or settle a payment before the due date, the payment is marked Suspense/Unclaimed. The client may not receive the GST input for that payment, and the agent will be eligible for only a 50 % incentive for that transaction.

When should I use this guide?

Refer to this FAQ whenever a payment is approaching—or has already passed—its settlement due date so you can understand the exact consequences for both the client and the agent.



Overview & why it matters

A settlement’s due date is the final calendar date by which an agent must claim or settle a payment. Missing this deadline triggers predetermined financial and compliance outcomes that impact both parties involved.



Consequences by party

Party

Consequence

Client

The client may not receive the GST input for that particular payment, as it will be settled as Suspense/Unclaimed.

Agent

The agent will only be eligible for a 50% incentive for that transaction.



When does this not apply?

The consequences above apply only when the payment remains unclaimed or unsettled after the due date. If the payment is settled on or before the due date, follow your organisation’s standard settlement process; this FAQ does not apply.