Date posted: 28/02/2023

Submission on Business Payment Practices Regulations

CA ANZ responded to the Ministry of Business, Innovation and Employment’s consultation

In our submission to the Ministry of Business, Innovation and Employment (MBIE), we combine feedback received from our members, many of whom work in organisations that will have obligations under the proposed Business Payment Practices Regime, as well as from the perspective of our own organisation - an entity subject to the Payment Times Reporting (PTR) regime in Australia and a potential reporting entity under this regime.

Our submission makes the following points:

  • The overarching objective of the regulations should be achieving the intent of the empowering Business Payment Practices Bill
  • The importance of ease of automation with accounting software systems to support the implementation of the regime
  • The underlying approach needs to be aligned to identifiable benefits for small businesses rather than additional compliance for larger businesses
  • The importance of education as essential to reduce payment times experienced by small businesses

The following suggestions and recommendations are made:

  • Utilising the internal finance team at MBIE or other pilot companies to provide a worked example of each measure
  • The number of measures should be kept to a minimum
  • Our preference would be to proceed with measures 1, 2 and 10
  • We raise concerns and suggest excluding measures 3, 5, 8 and 9
  • The addition of an ‘open field’ on a voluntary basis to allow businesses to provide context
  • The alignment of reporting with an entity’s year end
  • Providing entities with a three-month reporting window
  • Allowing an exemption for organisations registered as charities

For more information, see the progress of the Bill and the Ministry of Business, Innovation and Employment’s regulations page.

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