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This information is made public by the Regulator to put pressure on businesses to improve their payment practices, as delays in payments can negatively affect the financial stability of small businesses. The reporting entities include companies, foreign entities, partnerships, and trusts operating in Australia with a total income exceeding $100 million, excluding registered charities. Corporate groups with a total income of over $100 million must also report if they have individual entities with incomes of over $10 million.
The Payment Times Report (PTR) is used to collect data about a company’s payment terms and practices with small businesses in Australia. It includes information on payment terms offered, percentage of small business invoices paid within specific time frames, percentage of procurement from small business suppliers, and supply chain finance offered. Small businesses for PTR purposes have a turnover of less than AUD 10 million and operate in Australia. Failure to comply with the PTR can lead to significant penalties, such as fines of 0.6% of annual turnover. Authorization by a board member is necessary before filing the PTR.