Government launches new payment times report register
The payment times reporting regulator released the new payment times reports register last week following the commencement of the new rules.
The improved register has come as part of the government’s commitment to bolstering the payment times reporting scheme to promote a culture of prompt payment practices that supports small businesses being paid on time.
Following a recommendation to enhance the presentation of payment times data, the government has adopted new functionality and better accessibility to register information.
The new register provides users with interactive tools to compare and draw insights from payment times data.
In addition to this, the government said there are “improved data displays to create incentives for faster payment and fairer practices to small business by shining a light on poor payment performance and highlighting exemplars.”
The new payment times reporting rules 2024 have also commenced to coincide with the release of the new register.
These new rules replace the rules of 2020 and apply to the reporting period starting on or after 1 July 2024, however, requirements under the old rules will still apply to the reporting period that commenced before 1 July 2024.
According to the government, the new rules contain technical matters such as reporting content and calculation methodologies required for payment times reporting.
“Entities should familiarise themselves with their legal obligations under the reforms and be alert to the consultation that will take place in the coming months that will align the regulator's guidance material with new legislation and rules,” the government said.
The legislation to improve the operation of the payment times reporting scheme was a development welcomed by Australian small and large businesses.
Earlier this year, the Senate introduced amendments to establish a fast payer list which recognised large entities that pay small businesses in 20 days or less.
This reform also enabled the regulator to name and shame large businesses that are slow to pay their small business suppliers.
The main idea behind the ‘name and shame’ reform was to publicise and pressure big businesses that were the worst payment performers as well as commend those that were “the best.”
As previously reported in Accounting Times, Minister for Small Business Julie Collins said reporting under the overhauled reporting requirements will hold larger businesses to account for their payment practices.
“Faster payment times alleviate administrative burdens and reduce financing costs for small businesses,” Minister Collins said.
“The resulting productivity gains can support higher wages and profits and expand the range of economic and employment opportunities, with flow-on effects across the economy.”
