Government releases draft rules for payment times reporting
The minister for small business has released draft rules providing details on how the revised reporting scheme will operate.
The Labor government has released proposed rules containing technical details on how large businesses will need to report under the revised payment times Reporting scheme.
Legislation to implement changes to the Payment Times Reporting Act was passed by Parliament earlier this month.
The draft rules, released by Minister for Small Business Julie Collins, explain what information large businesses will need to report and the calculation methodologies for reporting.
The new rules repeal and remake the original 2020 rules and support the amendments made by the recently enacted legislation.
The draft rules outline the entity information that a reporting entity or a reporting nominee must provide to the regulator and what information must be included in the payment times report.
They also explain the method for determining whether an entity is a slow small business payer and define what a qualifying payment time of 20 days or less is to determine a fast small business payer.
Minister Collins said reporting under the overhauled reporting requirements will ensure large businesses are held accountable for poor payment practices, but also recognise fast payers.
"Faster payment times alleviate administrative burdens and reduce financing costs for small businesses," she 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."
Under the transitional provisions for the revised reporting scheme, the Payments Times Reporting Rules 2020 will continue to apply, on and after 1 July 2024, for payment times reports for reporting periods beginning before 1 July 2024.
"This is despite the repeal of the 2020 Rules, as in force immediately before the commencement of Schedule 1 to the instrument," the explanatory materials for the draft rules said.
The new instrument will apply in relation to payment times reports for reporting periods beginning on or after 1 July 2024.
Stakeholders are encouraged to provide a submission by Monday, 19 August 2024.
