What is payment times reporting?

An overview of the Australia Payment Times Reporting Scheme

The Payment Times Reporting Scheme is an Australian law introduced in January 2020. It mandates large businesses and certain government enterprises to publicly disclose their payment terms and times for small business suppliers.

Why was the law established?

The Payment Times Reporting Scheme was developed to help small businesses get paid faster. The Payment Times Reports Register — a tool that includes public information on large business payment practices — gives small businesses insight into their customers' payment practices. The intention of publicly disclosing this information is to incentivize large companies to promptly pay small business suppliers and adopt payment best practices.

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Who monitors reporting?

The Australian Government established the Payment Times Reporting Regulator in 2021 in the Treasury, which administers the scheme under the following:

The Regulator registers the reports on the Payment Times Reports Register (the register).

Who is required to report under the payment reporting laws?

It’s always advisable to consult an expert to determine qualifications. In broad terms, if your business operates in Australia and meets any of the following criteria for the most recent income year, reporting is required:

  • Total income surpasses $100 million.
  • Your entity is a controlling corporation with a combined group income exceeding $100 million.
  • Your total income exceeds $10 million, and you are a member of the controlling corporations' group with a combined income of over $100 million.
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What information needs to be reported under the Payment Times Reporting rules?

You must include the shortest and longest payment periods your business offers to small business suppliers. This also includes any changes made to the payment periods during the reporting period. 

To maintain transparency, you should report the proportion of small business invoices you paid within specific timeframes. These categories include:

  • Within 20 days of invoice issue
  • Between 21-30 days after the issue date
  • Between 31-60 days after the issue date
  • Between 61-90 days after the issue date
  • Between 91-120 days after the issue date
  • Over 120 days after the issue date

To accurately track payment times, your finance systems should record the calendar days it takes for each invoice to be paid from the day it is issued.

You’ll need to provide the proportion, based on total value, of procurement from small business suppliers during the relevant reporting period, compared to all invoices paid in that period.

You must also provide information on any 'notifiable event' between submissions. Notifiable events include changes to the business' accounting period, a business name change on the Business Names Register, and any other event classified as 'notifiable' under the PTR Rules.

If you have any discounts for early payments, you need to disclose that information, including the proportion of invoices paid this way and whether small businesses must agree to participate. 

What is the process for reporting?

You submit a payment times report (PTR Report) to the PTR Regulator for each six-month reporting period. This report should cover the first six months of your business' income year and each subsequent 6-month period. The income year aligns with your financial year for tax purposes.

What are the consequences of non-compliance with Payment Time Reporting Rules?

Failure to comply can lead to penalties and fines imposed by the Australian Securities and Investments Commission (ASIC). Additionally, if you fail to adhere to PTR Laws, you may face significant reputational harm if the PTR Regulator publishes non-compliance details.

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How can I stay prepared?

Accounts Payable (AP) teams are pivotal in an organization's financial operations, ensuring that outgoing payments are accurate and timely. Here are some key steps your team can take in preparing for compliance.

  • Identify your small business suppliers. You can use the small business identification tool.
  • Ensure your accounting and finance systems capture the information necessary for your report.
  • Ensure you have protocols to retain records of the information you have used to prepare your report.
  • Nominate a responsible person or party to approve and sign reporting that is submitted to the PTR Regulator. This is usually someone informed on legal obligations.
  • Test the integrity of data from your business systems – ensuring your reporting is accurate and timely.
  • Review your payment terms within your small business contracts, and make necessary adjustments for compliance and transparency.

How can Medius help?

Medius accounts payable automation software comprehensively tracks all necessary information for The Australian Payments Time Reporting Scheme. Its advanced functionality ensures compliance with payment parameters and timely payments. Your team can confidently rely on Medius to always keep their compliance in check with:

  • Automated, timely payment processing
  • Automated tracking and monitoring deadlines
  • Data accuracy
  • Real-time reporting
  • Audit trail
  • Centralized data 
  • And more

Transform your supplier payments
process with Medius Pay.

If you're interested in learning more about how Medius Pay can benefit your business, we invite you to watch this demo. Our demos provide a more detailed view of how the platform works, and how it can help you achieve your payment automation goals.


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