On 13 May, the Government announced that it will be introducing a new Payment Times Reporting Scheme for large businesses with a total annual income of over $100 million. The change will require large businesses to publicly report information on their payment terms and times to their small business suppliers.
The scheme will:
- increase transparency of the payment performance of large businesses so small businesses can make more informed decisions about their potential customers.
- drive cultural change to improve payment times.
The principal legislation for the Scheme, the Payment Times Reporting Bill 2020, was introduced into the Parliament mid-May. The Department of Industry, Science, Energy and Resources is now seeking input on an Exposure Draft of the subordinate legislation, which will provide detail on how sections of the legislation work in practice.
The department’s consultation paper and proposed legislation are available for download below.
The AADA is currently reviewing the proposed draft of the Rules and will be developing a submission by 12 June 2020.
If any members would like to contribute to this submission, please contact Brian Savage.