The government is introducing a new Payment Times Reporting Scheme (PTRS) commencing 1 January 2021, to improve payment times for Australian small businesses.
The scheme will require large businesses with an annual income of over $100 million to report on their payment terms and practices for their small business suppliers. This scheme aims to help create faster and fairer payment times for Australia’s 3.5 million small businesses.
Under the PTRS, the following elements will be introduced:
- Payment times reports – twice yearly reports on payment terms and practices
- Small Business Identification Tool – a tool to assist large businesses identify their small business suppliers
- The Regulator – government appointed Regulator to administer the scheme, raise awareness and publish the Payment Times Report
- Payment times register – public register showing how reporting entities are paying their small business suppliers
To help businesses understand their new reporting requirements and the various elements, the Department of Industry, Science, Energy and Resources have developed information and guidance material.
This information is available here.