The government has confirmed it plans to change the law to introduce a code of ethics for invoice payment times.

Many small businesses are struggling because of late payments from big businesses.

Small business minister Stuart Nash says he's been considering calls to introduce a code of ethics for businesses to commit to.

He told Mike Hosking the government will move to protect small businesses.

Nash says the businesses have a good point, and the government plans to introduce legislation to fix it.

"I am considering a public consultation document and the recommendations of his Small Business Council, my office is fleshing out the details of what form that law change may take."