The Payment Times Reporting Scheme aims to improve payment outcomes for small businesses. It creates transparency on how and when large businesses pay their small business suppliers.
Payment Times Reporting Scheme
The Payment Times Reporting Scheme gives small businesses (and members of the public) access to information on large business’s payment performance. This helps small businesses make informed decisions about who they do business with. Making payment information available to the public also encourages large businesses to improve their payment times. The scheme doesn't set any payment terms or mandate payment times for large businesses.
The scheme commenced on 1 January 2021. We administer the scheme under the Payment Times Reporting Act 2020, Payment Times Reporting Rules 2020 and the Payment Times Reporting (Form and Manner for Giving Report) Instrument 2021.
The problem the scheme addresses
Long payment terms (over 30 days) and late payments are a big problem for Australia’s 3.5 million small businesses. This has negative impacts on these businesses, and across the economy. Small businesses that are paid slowly, pay their suppliers more slowly in turn.
Based on a 2019 study by AlphaBeta, long payment times from large business to small business are estimated to amount to $77 billion per year. Having a 30-day payment time from large business to small business could benefit the Australian economy by approximately $313 million per year.
More than a third of small business invoices are paid after 30 days. Payment of these invoices takes on average 63 days. This means around $7 billion in working capital is transferred from small to large business every year.
Long and late payment times affect the cash flow of small businesses. This in turn limits their ability to hire, invest and grow. It can lead to higher bankruptcy, exit rates and impacts on the mental health of small business owners.
Guidance to understand the scheme
This website provides information about the Payment Times Reporting Scheme. It provides practical guidance to help you understand:
- the scheme
- reporting requirements
- how to report through the portal
- how to view submitted report information
- how the Regulator monitors and enforces compliance with the scheme.
This website provides general guidance only. Where appropriate, you should seek independent legal advice to ensure you comply with any requirements. The Regulator cannot provide you with advice on:
- how to comply with the scheme
- whether you need to report.
We update this guidance from time to time. Make sure you’re referring to the latest version.
- Payment Times Reporting Regulator
- How the scheme works
- Consultation for development of the Payment Times Reporting Scheme
- Payment Times Reporting Scheme announcement – Minister for Employment, Skills, Small and Family Business, 27 November 2020