The new Payment Times Reporting Act is much more complex to implement and comply with than many organisations might expect.
As a key part of the government’s commitment to improving cash flow and liquidity for small businesses, the new Payment Times Reporting Scheme aims to increase transparency over how large businesses are dealing with small business suppliers and managing payments to them.
From 1 January 2021, large businesses and certain government entities with income greater than $100m are required to report on small business supplier payment terms and practices. Entities assessed as reporting entities will need to report bi-annually and will then have three months at the end of every reporting period to lodge this information with the new Payment Times Reporting Regulator.
Reporting entities will need to use the Small Business Identification tool in order to identify suppliers that will be deemed small business suppliers for the purposes of the Act. The Small Business Identification tool will be continually updated by the Department of Industry Science Energy and Resources (DISER) and reporting entities must use this tool at least once every six months to ensure they are reporting accurately on relevant small business supplier payments.
Timely and accurate reporting is essential. In addition to potential fines for non-compliance, there is also a reputational risk for reporting entities as this data will be made publicly available via the Payment Times Reporting website.
KPMG’s Payment Times Advisory team can help you prepare for the new requirements. Our tested formula combines the capabilities of our Payment Times Reporting specialists with an intuitive technology-enabled solution that can provide calculations and visualisation of your Payment Times Reporting metrics.
Our dedicated Payment Times Advisory team brings a wide range of skills to help you best understand and prepare to comply with the new rules. We support CFOs, CEOs, Financial Controllers, Head of Procurement, Heads of Compliance, Tax teams and Board Members in identifying key issues, understanding the root causes and supporting their teams to implement operational, system and reporting changes.
Our Payment Times Reporting specialists will work closely with your team to deliver the right foundations for ongoing compliance.
We can help your team to understand the specific requirements of the Payment Times Reporting Act and what the key implications may be across your entire purchase to pay cycle.
We can assist you in identifying the key issues and gaps required for successful compliance across processes, systems, people and data and to make those changes to get your business ready.
KPMG Payment Insights can help prepare your business to comply with ongoing business Payment Times Reporting requirements in a cost-effective manner that is fully supported by our in-house team of Payment Times Reporting specialists.
KPMG’s Payment Insights technology-enabled solution has been specifically designed in line with the Payment Times Reporting Act and can help make your ongoing Payment Times Reporting submission process, easy and efficient.
Key features include:
Contact our dedicated team of Payment Times Reporting specialists to discuss how we can support your Payment Times Reporting preparations.