Payment Times Reporting Scheme has been saved
Payment Times Reporting Scheme
Compliance with the new regulations
Cash flow is king for small businesses and when small businesses are paid on time the entire economy benefits. - Kate Carnell, Small Business Ombudsman, 4 September 2020 (ASBFEO Payment Times Reporting Bill a step in the right direction: Ombudsman).
When small businesses are paid faster, they pay their suppliers faster. This can have major positive impacts across the economy, with increased economic activity, employment, and capital investment. Xero estimates1 that more than 50% of small business invoices are being paid late or slowly, costing small business approximately $7 billion in working capital each year.
In response to the issues of small businesses being paid late or slowly by their large business customers the Australian Federal Government introduced the Payment Times Reporting Act 2020 (The Act). This Act seeks to provide transparency on the payment times and practises of large businesses when engaging with their small business suppliers through the establishment of the Payment Times Reporting Scheme (PTRS).