- 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.
- New Zealand is currently seeking views on proposals to introduce a similar regime.
In September 2022, New Zealand’s Small Business Minister announced that the Government intends to introduce payment practices legislation, which includes an obligation to report on payment times. This will require businesses with an annual turnover of greater than $33 million to report on their payment practices bi-annually (6 monthly). The Ministry of Business Innovation and Employment made the decision to introduce the disclosure regime in December 2021 and is currently asking for feedback on both the empowering legislation and the regulations to support the Business Payment Practice regime. In particular, feedback is requested regarding:
- What payment practices information would be most useful
- How to make it as easy as possible for reporting entities to disclose
- How disclosure periods for reporting entities should be set; and
- How exemptions from the regime should work.
Submissions close on 26 February 2023.
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.
Business Payment Practices
Sharing Knowledge session with the Ministry for Business, Innovation and Employment in New Zealand on the proposed Business Payment Practices regime currently being consulted on. Originally recorded on 8 December 2022.Watch now
Sharing Knowledge Session
The payment times reporting (PTR) scheme: are you ready to report? Originally recorded on 18 Feb 2021.