Lodge Payment Times Reports (large business)
Large businesses (>$100M revenue) must report payment times to small business suppliers every 6 months.
Who must comply
Constitutionally covered entities (incorporated, carrying on business, or with central management and control or voting power in Australia) with annual consolidated revenue of $100 million or more, including corporate Commonwealth entities. Entities registered with the ACNC and entities controlled by another reporting entity are excluded; others can volunteer to report.
What triggers it
Meeting the $100 million consolidated revenue threshold for the financial year.
When due
Two reports a year, each covering a 6-month period based on the entity's financial year, due within 3 months after the end of each period. A short extension of up to 28 days can be sought without supporting evidence.
Evidence required
Payment times reports lodged in the Portal in the post-July 2024 format; payment data and the calculation methodology applied, including excluded and exempt payments; identification of small business suppliers (for example using the Small Business Identification tool); any nominee, subsidiary or exemption approvals.
Max penalty
Failing to give a payment times report (s 15): up to 300 penalty units ($109,200) for a body corporate per contravention. A false or misleading report (s 16) or failing to comply with a slow small business payer direction (s 22G): up to 0.6% of the entity's total income for the income year. The Regulator can instead issue an infringement notice of up to 60 penalty units ($21,840), accept an enforceable undertaking, and publish the non-compliance
Who must comply with this? The applicability test by industry, business structure and size.
Summary
The Payment Times Reporting Act 2020 (Cth), overhauled by the Payment Times Reporting Amendment Act 2024 from 7 September 2024 and supported by the Payment Times Reporting Rules 2024, requires large businesses to report how quickly they pay their small business suppliers. A reporting entity is a constitutionally covered entity with a connection to Australia and annual consolidated revenue of $100 million or more under accounting standards; a controlling entity gives one consolidated report covering the entities it controls. Reports are lodged through the Payment Times Reporting Portal and appear on the public Payment Times Reports Register, where businesses that pay small suppliers within 20 days can appear on a fast payers list and the slowest 20 per cent of payers can be required to make enhanced disclosures. The Regulator can publish details of non-compliance.
Enforced by
Source legislation
Topics
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Frequently asked questions
- Who must comply with Payment Times Reports (large business)?
- Constitutionally covered entities (incorporated, carrying on business, or with central management and control or voting power in Australia) with annual consolidated revenue of $100 million or more, including corporate Commonwealth entities. Entities registered with the ACNC and entities controlled by another reporting entity are excluded; others can volunteer to report.
- What triggers Payment Times Reports (large business)?
- Meeting the $100 million consolidated revenue threshold for the financial year.
- When is Payment Times Reports (large business) due?
- Two reports a year, each covering a 6-month period based on the entity's financial year, due within 3 months after the end of each period. A short extension of up to 28 days can be sought without supporting evidence.
- What is the maximum penalty for Payment Times Reports (large business)?
- Failing to give a payment times report (s 15): up to 300 penalty units ($109,200) for a body corporate per contravention. A false or misleading report (s 16) or failing to comply with a slow small business payer direction (s 22G): up to 0.6% of the entity's total income for the income year. The Regulator can instead issue an infringement notice of up to 60 penalty units ($21,840), accept an enforceable undertaking, and publish the non-compliance
- What evidence is required for Payment Times Reports (large business)?
- Payment times reports lodged in the Portal in the post-July 2024 format; payment data and the calculation methodology applied, including excluded and exempt payments; identification of small business suppliers (for example using the Small Business Identification tool); any nominee, subsidiary or exemption approvals.
Source: https://paymenttimes.gov.au/reporting/who-must-report-and-when. Rules Mate is not a law firm. Always verify against the live regulator source before acting.