Friday, 13 November 2020 02:51

New Payment Times Reporting Scheme

The government is introducing the Payment Times Reporting Scheme (PTRS) to improve payment outcomes for small businesses commencing 1 January 2021. The PTRS will create transparency around the payment practices of large business entities.

The scheme requires large businesses (>$100 million turnover) to report twice per year on their payment terms and practices for their small business suppliers.

 

The PTRS affects:

  • large businesses and large government enterprises with a total annual income of over $100 million

  • controlling corporations where the combined total annual income for all members is more than $100 million

  • businesses with a total annual income of at least $10 million that are part of a group headed by a controlling corporation with a collective income greater than $100 million.

    If your business falls into one of these categories, you will be required to report on the payment terms and practices for your small business suppliers.

 

There is more information here

 

Reporting and identifying your small business suppliers

You will need to submit a Payment Times Report with the payment information for your business. Reports will be submitted twice a year in line with your financial year reporting.

We’re developing an online reporting system to assist you to meet the PTRS reporting requirements.

This will include a Small Business Identification Tool. This tool will enable you to identify the small business suppliers you will need to report on. In identifying small business suppliers, the PTRS will draw on a taxation legislation definition of small business as those entities with an annual turnover of less than $10 million.

The Regulator

The Australian Government is establishing the Payment Times Reporting Regulator. The Regulator will administer the PTRS and publish the submitted reports on an online public register.

The Regulator will focus on raising awareness and assisting businesses to transition into the PTRS during the first year. Following a transition period, the Regulator will exercise monitoring and investigation powers and will be able to enforce compliance with the reporting requirements.

The Regulator must register payment times reports on a publicly available register- the Payment Times Reports Register. If the Regulator is satisfied that a reporting entity has failed to comply with the Act, the Regulator may publish the identity of the entity, or details of the entity’s non- compliance, on the register. Significant civil penalties apply to reporting entities that fail to report or give the Regulator a false or misleading report. The civil penalty regime does not apply in the first 12 months of the Scheme to allow entities time to adjust to the requirements of the PTRS.

 

Key dates

Key implementation dates of the PTRS and the first reporting timeframe:

  • November 2020
  • December 2020
  • 1 January 2021
  • 1 July - 31 September 2021

 

Preparing to report

Businesses create a profile for the reporting system Small Business Identification Tool released
PTRS reporting period begins
Businesses submit first reports

To prepare to report under the PTRS, please complete the attached online form.

This will create your entity profile for the reporting system. Once we have your profile details in the reporting system, we will update you on the status of the system, streamline the process for logging in for the first time and remind you when you need to act.

Please complete this form by 30 November 2020.

All information collected via this form will be used solely for the government’s administration of PTRS and will not be disclosed to any third party, in accordance with the department’s Privacy Policy. We have data protection measures in place to protect all information provided to us under the PTRS. www.industry.gov.au 

 

Contact us

Further information on the PTRS is available here

You can contact us at This email address is being protected from spambots. You need JavaScript enabled to view it. or business.gov.au on 13 28 46 (select option 1 government grants, programs and services).

While the onus is on businesses to comply with the legislative requirements of the PTRS we are able to support you in your compliance. If you believe your business is not required to report under the PTRS and has been identified in error, then we encourage you to provide us with evidence in support of this so that we can update our records.

If the evidence is clear that you are outside the scheme then we will update our system records accordingly. This would mean you would not be contacted further in relation to obligations under the PTRS unless our view changes. This will not affect your obligation to report if your status changes. Given the civil penalty regime that accompanies the PTRS and the onus on business to comply we would also encourage you to obtain independent professional advice.

We look forward to working with you to assist you to meet the reporting requirements under PTRS. We also look forward to working together to improve payment times for small businesses and to support them to thrive. This is particularly important in these challenging times.

Yours sincerely

Peter Cully

Head of Division

Small and Family Business

Read 80 times Last modified on Friday, 13 November 2020 03:06