Payment Times Reporting Scheme
1 August 2021
FairPayment by Deloitte. Helping you gain value through compliance.
FairPayment by Deloitte has helped numerous organisations gain confidence with their first submission and streamline their ongoing reporting. Want to know more? Contact us to speak to a PTRS expert to learn more about how FairPayment can help you gain value through compliance.
'Cash flow is king for small businesses and when small businesses are paid on time the entire economy benefits. - Kate Carnell, Small Business Ombudsman, 4 September 2020
- ASBFEO Payment Times Reporting Bill a step in the right direction: Ombudsman.
When small businesses are paid faster, they pay their suppliers faster. This can have major positive impacts across the economy, with increased economic activity, employment, and capital investment. Xero estimates1 that more than 50% of small business invoices are being paid late or slowly, costing small business approximately $7 billion in working capital each year.
In response to the issues of small businesses being paid late or slowly by their large business customers the Australian Federal Government introduced the Payment Times Reporting Act 2020 (The Act). This Act seeks to provide transparency on the payment times and practises of large businesses when engaging with their small business suppliers through the establishment of the Payment Times Reporting Scheme (PTRS).
Is your business impacted by the Payment Times Reporting Scheme?
Entity’s that carry on an enterprise in Australia, who are not registered under the Australian Charities and Not-for-profits Commission Act 2012, and fit any of the following criteria are required to report:
- the total income for the entity for the most recent income year was more than $100 million
- if the entity is a controlling corporation—the combined total income for all members of the controlling corporation’s group for the most recent income year was more than $100 million
- if the entity is a member of the group of a controlling corporation where the group’s income for the most recent income year was more than $100 million And the total income for the entity for the most recent income year was at least $10 million.
However, as group structures differ across businesses and complexities can arise from individual structures it is strongly advised to obtain advice on your individual circumstances.
How can Deloitte help you with the Payment Times Reporting Scheme?
We have developed a suite of analytical tools to help identify payment performance and, leveraging our knowledge and understanding of how finance functions operate, we are able to provide end to end support in achieving your goals, whether they be:
- Assistance in identifying which entities within your group could be subject to the Scheme
- Understanding your current payment performance across your group or for individual entities within the group
- The quality of your data to produce accurate reporting in accordance with the PTRS
- Working with you to develop processes and policies for your reporting under PTRS.
- On call support to assist you in being ready to report
- Understanding the working capital implications of any changes to your payment times and what levers maybe available to mitigate any impacts of any changes to your payment performance.
General Information Only
This presentation contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively the “Deloitte Network”) is, by means of this presentation , rendering professional advice or services.
Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this presentation.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.
Deloitte Asia Pacific Limited is a company limited by guarantee and a member firm of DTTL. Members of Deloitte Asia Pacific Limited and their related entities, each of which are separate and independent legal entities, provide services from more than 100 cities across the region, including Auckland, Bangkok, Beijing, Hanoi, Hong Kong, Jakarta, Kuala Lumpur, Manila, Melbourne, Osaka, Seoul, Shanghai, Singapore, Sydney, Taipei and Tokyo.
This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms or their related entities (collectively, the “Deloitte organization”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser.
No representations, warranties or undertakings (express or implied) are given as to the accuracy or completeness of the information in this communication, and none of DTTL, its member firms, related entities, employees or agents shall be liable or responsible for any loss or damage whatsoever arising directly or indirectly in connection with any person relying on this communication. DTTL and each of its member firms, and their related entities, are legally separate and independent entities.