Payment Times Reporting Framework: discussion paper stage 1

Closed 28 Dec 2019

Opened 13 Feb 2019

Overview

The small business function transferred to our department from the Department of Employment, Skills, Small and Family Business on 1 February 2020.

Update March 2020: Exposure draft

We are seeking views on the draft legislation to enable the Times Reporting Framework.

Update December 2019: Progress

Since early 2019, the department has engaged with over 390 businesses, industry organisations and small business representatives and is thankful for the industry engagement and the valuable feedback received. This feedback has been integral in the design of the framework to date. 

The most recent round of stakeholder consultation was held in November and December 2019. Through this process stakeholders were invited to attend consultation workshops in Perth (15 November) and Sydney (26 November), and participate in one-on-one meetings. 

Update November 2019: Discussion paper stage 2

We are seeking input on a second discussion paper.

Background

The government is committed to encouraging fairer and faster payment times and terms for small businesses. Reducing long payment times to small business can make the small business sector more resilient by improving cash flow and boosting employment and wages. 

To address this issue, the government will introduce a new Payment Times Reporting Framework.

The framework will require large businesses with over $100 million in annual turnover to publish payment information on how they engage with small businesses. It will cover around 2,500 of the largest businesses in Australia – including foreign companies and government entities.

The framework’s overall goal is to improve payment outcomes for Australian small businesses. To achieve this, it has 3 objectives:

  1. Improve the collection of information about the payment practices of large businesses and government agencies towards small business.
  2. Make information about payment practices visible and easily accessible to small businesses and other interested stakeholders.
  3. Limit the compliance and administrative burden associated with the reporting framework for government agencies, large and small businesses.

Discussion paper

What Happens Next

The department will continue consulting with stakeholders to progress implementation of the Framework.

Audiences

  • Small business

Interests

  • Small business