The Payment Times Reporting Bill 2020 has been passed by both houses of Parliament.
The Bill establishes a payment times reporting scheme whereby large businesses (total income exceeding $100 million for the most recent income year) and large government enterprises will be required to publicly report on their payment terms and practices for their small business suppliers.
Reporting will be every six months, commencing in January 2021.
An entity is described as a small business where it carries on an enterprise in Australia and its annual turnover was less than $10 million for the most recent income year.
The report should state the proportion of small business invoices paid by the entity between certain ranges of time, including invoices paid within 20 days after the day the small business invoice was issued, between 21 and 30 days, between 31 and 60 days, between 61 and 90 days, between 91 and 120 days and invoices paid more than 120 days.
The scheme will be administered by the Payment Times Reporting Regulator, who will publish reports on a register called the Payment Times Reports Register.
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Author: David Jacobson
Principal, Bright Corporate Law
About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.