The Federal government has released a new Statement of Expectations for the Payment Times Reporting Regulator as part of the ongoing efforts towards improving payment times for small businesses.
The new Statement has set expectations for the regulator to foster a culture of prompt payment times by increasing the visibility and accessibility of payment times data through potential incentivisation of faster payment times for the benefit of Australia’s 2.6 million small businesses.
It also reinforces the Payment Times Reporting Regulator’s role to support regulated entities, ensuring that they meet and comply with their obligations by providing appropriate guidance, education and practical tools, and adopting a proportionate approach to compliance action.
“One of the biggest issues small businesses raise with me is better payment times,” said Minister for Small Business, Julie Collins MP. “That’s why our Government has worked hard to improve fairness and ensure big businesses are paying small businesses on time.”
Collins added, “Small businesses are the engine room of our economy and it is critical we continue to back them with our reforms to payment times.”
The revised Statement reflects the overhaul of the Payment Times Reporting Scheme which has served as the basis for the Payment Times Reporting Regulator for the various tools such as the Payment Times Reports Register, which assesses big businesses’ payment data to their small business suppliers, thus improving transparency, fostering a fairer business environment and incentivising large businesses to pay faster which will support the growth and sustainability of small businesses nationwide.
The Federal government has also announced that it is investing $33.4 million to implement reforms to improve payment times for small businesses.
