RWTA EO Message - Federal Government Update
Legislation has been passed to implement the Payment Times Reporting Scheme, which will shine a light on large business payment performance.
Under the scheme, large businesses and applicable government enterprises with a total annual income of over $100 million will have to report publicly on how they pay their small business suppliers.
The government sees this as supporting millions of small businesses to get paid on time aslate payments have a significant impact on small business cash flow and inhibit the ability of a firm to invest, grow and employ.
Cash flow is crucial to the health of any business, but especially small business.
The government suggests that
The introduction of this is transparency will lead to fairer and faster payments for Australia’s small and family businesses
This will help small businesses make more informed decisions about who they do business with
That the general public can make better decisions about the large businesses they purchase from.
Reducing long and late payment times to small business will help improve their cash flow and boost employment and wages.
This will commence on 1 January 2021, and a dedicated web portal is being developed to help large businesses identify their small business suppliers and allow them to report on their payment performance.
