Changes to payment times reporting to support small businesses

Business Council of Australia

Proposed changes to the Payment Times Reporting Scheme will improve the transparency of payment times, reduce compliance costs and assist in ensuring small businesses are paid fairly and promptly.

Business Council of Australia Chief Executive Bran Black said the current regime is operating below its potential and unnecessarily increasing compliance costs for businesses of all sizes.

“Trade between big and small businesses is valued at almost $700 billion a year,” Mr Black said.

“Small businesses are an integral part of the supply chain of the economy and these proposed changes will provide more accountability and transparency on payments, so they can remain viable.

“PTRS data will help shine a positive light on large companies that pay small businesses promptly, and equally put on notice companies which unfairly extend payment times to small business suppliers.”

The updated PTRS is supported by voluntary commitments to fast payments through the BCA’s Australian Supplier Payment Code, which is an industry-led commitment to pay small business suppliers on time and in a 30-day period. The ASPC has over 150 signatories.

Mr Black noted payment times to small businesses have improved, but more work is needed to ensure the new PTRS regime is cost effective and implemented steadily.

“Since PTRS data was made available two and a half years ago, it is clear that payment terms and practices have improved,” Mr Black said.

“We look forward to continued engagement to ensure companies have sufficient time for systems and processes to be compliant with the updated regime.

“A revised PTRS needs to ensure compliance costs for business are minimised, while ensuring the data is accessible and useful.”

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