Date posted: 08/03/2023

Joint submission on statutory review of Payment times reporting Act 2020

CA ANZ and CPA have provided feedback in response to independent review in Australia

In brief

  • Effective, risk-based enforcement
  • Improvement of small business identification (SBI) tool
  • SBI connectivity to accounts payable systems

In December 2022, an independent review of the Payment times reporting Act 2020 (the Act) was announced by the Australian Government. The consultation document, released in February 2023, aims to consider the operation of the Act against its objectives and whether payment terms and practices of large businesses to small business suppliers has improved.

CA ANZ and CPA Australia jointly responded to the consultation as well as participated in a consultation roundtable which was hosted by the Australian Small Business and Family Enterprise Ombudsman’s (ASBFEO) office.

In our joint submission, we outlined that to help the Payment Times Reporting (PTR) scheme meet its objectives, we recommend the following improvements:

  1. The Regulator shifts its focus to effective, risk-based enforcement. That is, applying its enforcement powers against egregious behaviour, while using education to improve less concerning behaviour.
  2. Payment times data be made available through an Application Programming Interface (API) to third parties, such as financial software providers and credit reporting bureaux, to incorporate into their platforms.
  3. The Small Business Identification (SBI) tool be improved and made available to reporting entities through an API. This would allow them to connect their accounts payable system with the tool.
  4. The Government provides incentives to small businesses to adopt eInvoicing.

The final report is expected to be provided to Government by 30 June 2023.

 

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