The Department of Employment, Skills, Small and Family Business called for submissions on the Payment Times Reporting Framework (Stage 2) (PTRF).
The PTRF requires large businesses and Commonwealth Government agencies with over $100 million in annual turnover to report on their small business payment times and practices. The framework aims to:
- Improve the collection of information about the payment practices of large businesses and government agencies towards small business;
- Make information about payment practices visible and easily accessible to small businesses and other interested stakeholders; and
- Minimise the compliance and administrative burden associated with the reporting framework for small and large businesses and government agencies.
Key points from our submission include:
- It is critical that adequate flexibility is embedded into the PTRF to keep pace with the changing environment that Australian businesses must adapt to, in particular technology.
- Reporting requirements should be kept as simple as possible and be clearly linked to the objectives of the Reporting Framework.
- We recommend the PTRF is developed with accompanying practical guidance that clearly articulates the benefits of reporting as we consider this would help reporting entities to adopt the framework and would encourage compliance.
- We understand that enforcement mechanisms may be appropriate for certain circumstances, however we suggest this is carefully considered so that businesses intending to ‘do the right thing’ are not inadvertently penalised.