Payment Times Reporting Scheme

In the Payment Times Reporting Scheme, reporting entities need to report on their payment terms and practices every six months, which will include information about the timeframe for payments made to small businesses, among other pertinent information.

The information reported will be made available to small businesses to assist them in making informed decisions about their potential customers.

Who needs to report under this scheme?

Businesses required to report under this scheme include those that are:

1. Constitutionally-covered, carrying on an enterprise in Australia and meet the income threshold of $100 million in total annual income
2. Commonwealth corporate entities and Commonwealth companies that meet the income threshold
3. Entities with total income in excess of $10 million that are members of a controlling corporation with a combined income in excess of $100 million

Other constitutionally — covered entities may volunteer to submit a report. Entities registered under the Australian Charities and Not-for-Profits Commission Act 212 are exempt.

Who is a “Small Business” under this scheme?

Small businesses are ABN holders with turnover under $10 million. These can be identified by using the government’s Small Business Identification (SBI) tool.

What information is reported

The information reported includes:

• Identification information of the reporting entity
• Name and role of the person submitting the report
• Approver of the report
• The reporting entity’s governing body – e.g. board members, partners, trustees etc
• Declaration by responsible member that they must provide this report to the principal governing body, including the date it has been provided 
• Aggregated data on the reporting entities’ payment terms and practices to small businesses. This includes the standard payment periods per the contract with the small business suppliers or supply chain finance arrangement, including:
• Shortest payment terms
• Standard payment terms
• Longest payment terms
• Any changes to these terms during the period with an explanation
  

Disclaimer

The information provided in this information sheet does not constitute advice. The information is of a general nature only and does not take into account your individual situation. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.