The Australian Government established the Payment Times Reporting Scheme (the scheme). The scheme aims to improve payment times for Australian small businesses.
The scheme commenced on 1 January 2021. Our department administers the scheme under the Payment Times Reporting Act 2020, the Payment Times Reporting Rules 2020 and the Payment Times Reporting (Form and Manner for Giving Report) Instrument 2021.
Under the scheme, large businesses and large government enterprises need to report their small business payment terms and times.
- increases transparency around large business’ payment performance
- helps small businesses decide who to do business with
- creates incentives for improved payment times and practices
- helps the public make decisions about the large businesses they buy from
The scheme applies to businesses that:
- are constitutionally-covered
- carry on an enterprise in Australia
- meet the income threshold of over $100 milllion in total annual income
- have a total annual income greater than $10 million and that are members of a group headed by a controlling corporation with a combined total income greater than $100 million
Commonwealth corporate entities and Commonwealth companies who meet the income threshold are also required to report.
If your business meets the criteria, you’re required to report the payment terms and practices for your small business suppliers. You will submit online ‘Payment times reports’ twice per year.
Businesses that are not covered by the scheme are able to apply to volunteer to report.
Read about volunteer reporting entities.
Large businesses required to report can use the Small Business Identification (SBI) tool to identify their small business suppliers. The SBI tool is not a publicly available service.
As a small business, you can opt out of being identified by the SBI tool. If you opt out, large businesses will not report on their payment times and terms to your business.
If you believe your business or one or more of your suppliers should not be identified as a small business, follow this process to request to change the status of your business in the SBI Tool.
The data contained by the SBI tool will continue to be improved and updated. If you have feedback about the SBI tool, please contact us at PaymentTimesReporting@industry.gov.au
Your feedback will help us improve the SBI tool to better meet your needs.
Read more about the SBI tool.
In the portal, you can:
- register your business details
- use the Small Business Identification (SBI) tool
- register for updates on volunteer reporting
An early release of the portal is currently available. Between April and June 2021, businesses will be able to use the portal to test uploading a report.
Read more about how to report.
Guidance has been developed for reporting entities. It provides practical guidance on how to comply with the reporting requirements of the scheme.
The guidance will be periodically updated, with updates likely to occur in response to queries from stakeholders during the first reporting period.
Small businesses can also provide feedback on their large business clients’ payment times and terms by contacting the Australian Small Business and Family Enterprise Ombudsman (ASBFEO). ASBFEO provides assistance for small businesses including advocacy and dispute resolution.
The Australian Government established the Payment Times Reporting Regulator on 1 January 2021.
The Regulator administers the scheme, raises awareness and has a broad range of compliance and enforcement powers.
The Scheme has a 12 month transition period before compliance and enforcement measures apply. The transition period ends in December 2021. All reporting entities are still required to report during this period.
Read about the Payment times reporting regulator.
Payment times reports register
The Regulator will also maintain the Payment times reports register. This public register will show how each reporting entity is paying their small business suppliers
Read about the Payments times reports register.
- See how we consulted with small and large business, and industry, to design and develop the Scheme
- The former Minister for Employment, Skills, Small and Family Business announced the Payment Times Reporting Scheme Rules and Guidance Material on 27 November 2020.
- Email: PaymentTimesReporting@industry.gov.au
- Call business.gov.au 13 28 46 (select option 1 government grants, programs and services)