HOW QUICKLY DOES LARGE BUSINESS PAY SMALL BUSINESS?
The Payment Times Reports Register shows information on payments from large businesses, and other reporting entities, to their small business suppliers. Under the scheme, large businesses and certain government enterprises must report their payment terms and times twice a year for small business.
The scheme makes information about large business’s payment performance available to the public and helps small businesses decide who to do business with. This creates incentives for improved payment times and practices. The Payment Times Reporting Regulator (the Regulator) publishes these reports on the Payment Times Reports Register. The register will be available as a downloadable data table of all reports screened by the Regulator from the first reporting period, 1st January 2021 to 30th June 2021.
The reports will be published as received by the Regulator, unless redacted or withheld from publication in accordance with section 20 of the Payment Times Reporting Act 2020.
The Payment Times Reporting Scheme aims to create transparency around the payment practices of large business entities. It gives small businesses access to information on large business’s payment times and performance. This helps small businesses make informed decisions about who they do business with.
The Scheme applies to:
- Constitutionally covered entities that carry on an enterprise in Australia.
Where any of the following income tests apply:
- Large businesses and certain government enterprises with a total annual income of over $100 million.
- Controlling corporations where the combined total annual income for all members is more than $100 million.
- Businesses with a total annual income greater than $10 million that are part of a group, headed by a controlling corporation, with a collective income greater than $100 million.
- Businesses that fall into these categories must register for the scheme through the Payment Times Reporting Portal.
- Businesses who do not meet these requirements may choose to voluntarily submit a report. Charitable and not-for-profit entities are exempt from the reporting requirements.
- Reporting entities report twice a year on their payment terms and times for their small business suppliers. The first reporting window opened 1st July 2021.
For more information and to view the reports visit the Payment Times Reporting Regulator’s website
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