Payment practices and performance reporting

Companies must report their payment practices, policies, and performances to the government. The report includes the average time to pay the vendors, including those that are paid late.

Australia specifics

The Australian government has implemented a Payment Times Reporting Scheme. Every 6 months, entities must publicly report payment terms and practices for their small business suppliers. Small business is defined as businesses with turnover that is less than $10m annually. The Small Business Identification (SBI) Tool is available so that reporting entities can identify their small business suppliers for reporting.

The reporting template for the Payment Times Reporting Scheme has three parts:

  • The main data component is a .CSV file: PTRS Reporting – CSV Template.csv
  • A word file for the report signatures and associated declarations PTRS Reporting – Responsible Member Approval Template.docx
  • Instructions with clear definitions and validation requirements PTRS Reporting – Templates Instructions.docx

A CSV file of supplier ABNs can be uploaded to the SBI Tool. Entities that are classified as small businesses are identified and a CSV file is returned. The file contains a listing of the ABNs for the purpose of their payment times report.

The government publishes the reports twice a year on the Payment Times Report Register. The published report will not contain any specific details of the small businesses.

After the transition period, escalation of regulatory action is considered in one or both of these circumstances:

  • An entity has repeated breaches and is not willing to comply
  • The alleged breach is such that it impedes the public or small business' ability to use or rely on the Payment Times Reports Register.