These new reforms will be a shot in the arm for small businesses with faster payment times improving cash flow, alleviating administrative burdens, and reducing financing costs.
Better payment times benefit everyone with resulting gains to productivity supporting higher wages and profits and expanding employment opportunities.
The Federal Labor Government will:
Increase pressure on big businesses to improve payment times by highlighting the best and worst payment performers.
Overhaul the Payment Times Reporting Act 2020 to update the objects of the Act, simplify and streamline reporting, add proportionate regulatory powers, and address inefficiencies with current reporting requirements and processes.
Ensure payment times are considered in development of relevant Government reforms and policies, including unfair trading practices reforms, eInvoicing and Government procurement.
Reduce the regulatory burden for entities reporting under the Payment Times Reporting Scheme.
This announcement is in response to the independent review (the Review) of the Payment Times Reporting Act 2020.
The full Government Response to the Review is available on the Treasury website treasury.gov.au/publication/p2023-469059, and the Payment Times Reports Register is available at register.paymenttimes.gov.au.
QUOTES ATTRIBUTABLE TO FEDERAL MEMBER FOR BENDIGO, LISA CHESTERS MP:
"These initiatives will level the playing field to ensure small businesses are paid on time.
"Reforms like this will make a big impact on small businesses in Central Victoria who have felt taken advantage of by not being paid on time.
"I'd also like to remind everyone to shop local and support our small businesses this Christmas - every dollar spent locally supports local jobs."
