Guidance material has been updated to reflect two new improvements in the administration of the Payment Times Reporting Scheme. These changes are to the reporting of credit card transactions and how requests for corrections to the Small Business Identification Tool can be made.
Changes to reporting credit card transactions
Credit card transactions may be excluded from payment times reports using two approaches:
- Transactions under A$100 (incl. GST)
- Reliance on an internal credit card policy that prohibit use of a credit card under a trade credit arrangement.
Full details are in the new Information sheet 8: Reporting credit card transactions
Revised process for correcting the Small Business Identification (SBI) Tool
Reporting entities may request a correction of the SBI Tool by:
- asking their supplier to contact the Regulator to update its classification. The supplier will need to supply its registered business name, ABN and a statement confirming the contact person is authorised to request the update on behalf of the entity, or
- providing documentary evidence (payment records or a statutory declaration) that the entity paid invoices for A$10 million or more to the small business supplier in a single income year.
The Regulator is committed to updating the SBI Tool within 28 calendar days of evidence being provided.
More information is available in the revised Information sheet 6: Small Business Identification (SBI) Tool.
Date of effect
Reporting entities with a reporting period end date after 11 December 2023 may use the revised guidance materials when preparing reports. For many entities, these changes will apply to reports for the reporting period ending 31 December 2023.
What’s next?
These guidance updates aim to reduce regulatory burden and are the first initiatives taken under the Government’s response to the Statutory Review of the Payment Times Reporting Act 2020. The Hon Julie Collins MP, Minister for Small Business released the response on 5 December 2023.
The Government agreed with all recommendations in the Review.
These guidance updates are an interim step that can be implemented by policy and guidance changes. The Regulator will provide information to stakeholders on the consultation process for any legislative amendments in due course.
All reporting obligations remain and the Regulator is continuing to monitor and enforce compliance with the Payment Times Reporting Act 2020.