The second Payment Times Reporting Bill received Royal Assent on 14 October 2020 and this means Australia now has a payment times reporting regime commencing on 1 January 2021.
There is a new Federal Government webpage which has limited information at the time of this article, but will be the source for any updates.
Here, we outline some of the milestones to be aware of and suggested actions to take.
Self-identification for large businesses
Some 4,500 large businesses have started to receive correspondence to advise them about the Payment Times Reporting Act and to ask them to provide relevant details ahead of the 1 January commencement date.
The letter includes a link to a smartform which will collect information about the businesses and create business profiles.
The rules will be released shortly, but no set date for their release has been announced as yet. The rules will provide further guidance for large businesses.
Small Business Identification Tool and Reporting system
The Small Business Identification Tool will be available to large business in December 2020. The small business identification tool will be the only way to identify small businesses.
The full reporting system (with the ability to upload reports) will be available in April 2021.
Future changes to the Federal Government's procurement policy, as announced in the recent Federal Budget, will require large business tenderers to pay their suppliers within 20 days. This is an important related development for any PTR Implementation project if your business relies heavily upon revenue from the Federal Government.
Moreover, for those groups with Trans-Tasman operations, a consultation process on small business payment times has re-commenced in New Zealand, so this also requires close monitoring.
A review of the PTR Acts must occur after 1 Jan 2023. The review, must consider whether to implement mandated maximum Small Business supplier payment periods.
For more information on understanding the legislation and your potential requirement to report, see our previous article – Payment times reporting regime now law: Immediate actions to consider.
Pre 1 January 2021 – prepare
There are a number of key preparation steps that we encourage you to take prior to 1 January 2021:
KPMG has launched a ‘Ready to Report’ diagnostic for clients to highlight risks and areas for improvement in light of these new requirements.
Contact us for further information or assistance with Payment Times Reporting.