Are you ready for Payment Times Reporting?

Understand and prepare to comply with the new Payment Times Reporting Act with KPMG’s Payment Insights solution.

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.

Additional requirements for Reporting Entities

In addition to the requirements of Payment Times Reporting, the new Payment Times Procurement Connected Policy commenced 1 October 2021 and introduces significant changes for businesses supplying goods or services to the Commonwealth Government.

The new Payment Times Procurement Connected Policy requires Reporting Entities that enter into government contracts with non-corporate Commonwealth entities valued above $4m, to pay certain suppliers within 20 calendar days and pass on the requirement to other qualifying sub-contracts or suppliers above $4m.

This policy will have significant implications for many businesses and continues a wave of recent Government policies and legislation aimed at improving payment timeliness and visibility by businesses.

We expect there to be significant evolution in the Payment Times Procurement Connected Policy in coming months and years due to its ambitious nature and significant impacts for corporates.

As this is a Government policy (as opposed to legislation), we expect the changes to be rapid and broad reaching. We expect continued developments in this area with many states introducing state procurement changes that are aligned with a similar policy objective to the Payment Times Procurement Connected Policy.

For further information about the new Payment Times Procurement Connected Policy requirements, please contact our specialists to discuss.

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.

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How we can help

Our Payment Times Reporting specialists will work closely with your team to deliver the right foundations for ongoing compliance.

Understand

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.

Prepare

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.

Comply

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 Payment Insights | Payment Times Reporting

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.

Learn more about KPMG Payment Insights

KPMG Payment Insights solution summary report example

Key features include:

  • ability to visualise Payment Times Reporting metrics with our interactive dashboard
  • transform your data to the required structure, validate quality and identify gaps
  • give your board confidence with bespoke report outputs
  • fully supported and guided by KPMG Payment Times Reporting specialists.


Contact our dedicated team of Payment Times Reporting specialists to discuss how we can support your Payment Times Reporting preparations.



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