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The Payment Times Reporting Scheme begins on 1 January 2021. While aimed at assisting small businesses when engaging with large business customers, the Scheme has significant implications on negotiated payment terms and compliance obligations for large business customers.
Following two inquiries by the Australian Small Business and Family Enterprises Ombudsman in 2017 and 2019 into the payment times and practices of large businesses, the Federal Government has introduced the Payment Times Reporting Scheme. The Scheme is comprised of two Bills, which received royal assent in September and October 2020, and will come into effect on 1 January 2021. A summary of the Bills is outlined below.