Payment Times Reporting Scheme

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FairPayment by Deloitte has helped numerous organisations gain confidence with their first submission and streamline their ongoing reporting. Want to know more? Contact us to speak to a PTRS expert to learn more about how FairPayment can help you gain value through compliance.

'Cash flow is king for small businesses and when small businesses are paid on time the entire economy benefits. - Kate Carnell, Small Business Ombudsman, 4 September 2020

 - ASBFEO Payment Times Reporting Bill a step in the right direction: Ombudsman.

When small businesses are paid faster, they pay their suppliers faster. This can have major positive impacts across the economy, with increased economic activity, employment, and capital investment. Xero estimates1 that more than 50% of small business invoices are being paid late or slowly, costing small business approximately $7 billion in working capital each year.

In response to the issues of small businesses being paid late or slowly by their large business customers the Australian Federal Government introduced the Payment Times Reporting Act 2020 (The Act). This Act seeks to provide transparency on the payment times and practises of large businesses when engaging with their small business suppliers through the establishment of the Payment Times Reporting Scheme (PTRS).

Is your business impacted by the Payment Times Reporting Scheme?

Entity’s that carry on an enterprise in Australia, who are not registered under the Australian Charities and Not-for-profits Commission Act 2012, and fit any of the following criteria are required to report:

• the total income for the entity for the most recent income year was more than $100 million
• if the entity is a controlling corporation—the combined total income for all members of the controlling corporation’s group for the most recent income year was more than $100 million
• if the entity is a member of the group of a controlling corporation where the group’s income for the most recent income year was more than $100 million And the total income for the entity for the most recent income year was at least $10 million.

However, as group structures differ across businesses and complexities can arise from individual structures it is strongly advised to obtain advice on your individual circumstances.

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