Date posted: 04/09/2023 1 min read

Business Payment Practices (NZ) and Payment Times Reporting (AU)

A brief overview of the latest updates on the frameworks in Australia and New Zealand

In brief

  • Payment times reporting requires large businesses to publish reports on their business payment times and practices.
  • Currently in Australia, businesses over $100m are required to report bi-annually.
  • In New Zealand, the Business Payment Practices Bill was granted royal assent on 26 July 2023

New Zealand

The Business Payment Practices Bill (‘the Bill’) was granted royal assent in July 2023 and regulations published in August 2023. A phased implementation approach has been adopted by MBIE which will require organisations with revenue of:

  • $100 million or more to commence the first a bi-annual reporting period from 1 July 2024 to 31 December 2024 (disclose by 31 March 2025)
  • $33 million or more and total operating expenditure of more than $10 million to commence the first a bi-annual reporting period from 1 January 2025 to 30 June 2025. 

MBIE has released initial guidance for reporting entities which includes specific details of disclosure requirements and methodology for each reporting measure.

Visit the MBIE website for further details  

Sign up for the latest updates 

 

BPP submission

Read our submission to the New Zealand Government on the Business Payment Practices Bill.

Read BPP submission

Business Payment Practices Regulations submission

Read our submission to the New Zealand Government on the Business Payment Practices Regulations.

Sharing Knowledge session

The Ministry of Business, Innovation and Employment hosted a sharing knowledge session on the proposed Business Payment Practices regime in New Zealand. Originally recorded on 8 December 2022.

Watch now

Australia

The Payment Times Reporting (PTR) Scheme, which commenced on 1 January 2021, requires businesses with over $100 million in annual turnover to publish information on their small business payment times and practices.

The framework requires large entities to prepare bi-annual reports on their payment terms to small businesses. Reporting entities are required to submit their reports 3 months after the end of each of the reporting periods via the Payment Times Reporting Portal. Daily penalties apply to reporting entities that fail to report. The data submitted is publicly available through the Payment Times Reports Register.

In September 2023, the report of the statutory review of the Payment Times Reporting Act (2020) (the Act) was published. The report outlines 20 findings, 14 recommendations and 23 actions for Government including amendments to the objects of the Act, simplification of who must report and improvement of the Small Business Identification Tool. Read the statutory review of the Act report.

PTR submission

Read our joint submission to the statutory review.

Read PTR submission

Sharing Knowledge Session

The payment times reporting (PTR) scheme in Australia: are you ready to report? Originally recorded on 18 Feb 2021.

Watch nowAbout Sharing Knowledge Session

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