Payment times reporting scheme
The Australian Government commenced the Payment Times Reporting Scheme on 1 January 2021 with the aim to improve payment times for Australian small businesses.
Large businesses (annual income $100m+) need to report their small business (<$10m annual turnover) payment terms and times. The regulator is the Department of Industry, Science, Energy and Resources and the first Payment Times Reports are required from 1 July 2021, with lodgement due by 30 September 2021.
The scheme applies to businesses that:
- are ‘constitutionally-covered’ (could include private/public companies, trusts, partnerships, joint ventures, sole traders, etc.)
- carry on an enterprise in Australia
- meet the income threshold of over $100 million in total annual income, or
- have a total annual income greater than $10 million and that are members of a group headed by a controlling corporation with a combined total income greater than $100 million.
Reporting entities must lodge a Payment Times Report within 3 months of the end of each 6-month reporting period. For entities with June and December year ends, reporting commences in respect of the six-month period starting 1 January 2021 with the first report to be submitted by 30 September 2021.
The Payment times report template is available at the Payment Times Reporting Portal. Reports will be published to the Payment Times Reports Register (available for public access).
A Payment Times Report must comply with requirements relating to its preparation, content and approval and includes information such as:
- The proportion, determined by total number and total value, of small business invoices paid by the entity during the reporting period in each of the following:
- within 20 days after the issue day (ie the date when the invoice was received)
- 21-30 days after the issue day, or
- 31-60 days after the issue day .etc.
How SW can assist
Contact one of our experts below to discuss how the Payment Times Reporting Scheme affects your business reporting requirements.
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