Reporting entities must provide a Payment times report for each reporting period. A reporting period is:
- the first 6 months of each income year for the reporting entity
- the second 6 months of each such income year
‘Income year’ is based on the financial year used by the entity for tax purposes. The Commissioner of Taxation may allow an entity to adopt an accounting period ending on a day other than 30 June. Then that accounting period is considered to be the entity’s income year.
Under the scheme, reporting entities must report on the income year they use for tax purposes. This might be a standard income year from 1 July to 30 June. It could also be a non-standard income year such as a calendar year.
Where income tax is not payable by the reporting entity, they may use a standard financial year as their income year.
Reporting entities are required to retain information used to prepare a Payment times report. This information must be retained for at least 7 years after the end of the reporting period.
Income year is a calendar year
Example: If an entity’s income year runs from 1 January to 31 December, their reporting periods would be from January to June and July to December.
Income year is not a common financial year
Example: If an entity’s income year runs from 1 April to 31 March, their reporting periods would run from April to September and October to March.
Beginning reporting at the commencement of the Scheme
Reporting arrangements at the commencement of the scheme on 1 January 2021 are as follows:
- Entities with standard and calendar income years will have their first reporting period begin on 1 January 2021 and run to 30 June 2021.
- Entities with income years beginning in the first half of 2021 will have their first reporting period begin with the start of their income year. For example, entities with an income year starting on 1 April 2021 will start their first reporting period on this date and it will run to 30 September 2021.
- Entities with income years beginning in the second half of 2021 will have their first reporting period begin halfway through their income year. For example, if the income year for an entity begins on 1 November 2021, their first reporting period will start on 1 May 2021.
Reporting window
All reporting entities will have a 3-month period after the end of a reporting period to submit their Payment times report for the reporting period. This is the reporting window.