Payment Times Reporting Scheme
The Payment Times Reporting Scheme (PTRS) is commencing 1 January 2021.
The Scheme aims to improve payment outcomes for small businesses. It will create transparency around the payment practices from large businesses to small business suppliers.
Small businesses will have access to information on reporting entities’ payment performance. This will enable them to make a more informed decision about their potential customers. Greater transparency on payment practices and performance will also encourage cultural change to improve payment times.
Long (after 30 days) and late payments are a significant problem for Australia’s 3.5 million small businesses. This has negative impacts not only on these businesses but also more broadly across the economy. Small business that are paid slowly pay their suppliers more slowly in turn.
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. It will 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 at industry.gov.au/PTRS.