Payment times reporting framework – discussion paper
The Commonwealth Government announced on 21 November 2018 that it would introduce a new national large business reporting framework to encourage fairer, faster payment times and terms for small businesses.
The Payment Times Reporting Framework will require large businesses with over $100 million in annual turnover to publish payment information. It will cover up to 3,000 of the largest businesses in Australia, including foreign companies and government entities.
The framework’s overall goal is to improve payment outcomes for Australian small businesses. To achieve this, it has three objectives:
- Improve the collection of information about the payment practices of large businesses and government agencies towards small business.
- Make information about payment practices visible and easily accessible to small businesses and other interested stakeholders.
- Minimise the compliance and administrative burden associated with the reporting framework for government agencies, large and small businesses.
The review wants to understand from stakeholders how the framework can help improve payment outcomes for small businesses, while minimising the regulatory burden of reporting for large businesses.
The six design questions outlined in the below survey are important to striking that balance:
- What is the preferred scope of reporting; in particular, should reporting be limited to payment practices for small business? If so, how should small business be defined?
- Who should be obligated to report under the framework? What reporting approach for related entities is going to be most useful for small business?
- What payment information should be reported under the framework? What information is going to be most useful for small business (e.g. standard terms, payment times)?
- How should information be reported? In what situations will small business access the information?
- How should the framework be administered? What is the preferred balance between regulatory certainty (through legislation and administrator powers) and flexibility (through standards and self-regulation)?
- Should government agencies be subject to the framework and / or comparable obligations?
In the survey below there is a brief introduction to each of the key issues. For more detailed information, please read the Payment Times Reporting Framework – Discussion Paper.
Responses to any or all of the issues raised in the discussion paper can be made below or by submitting a written submission to PaymentTimes@jobs.gov.au. The closing date for submissions is 28 February 2019. Submissions will not be published; however a summary table (potentially including anonymous quotes) will be published.