The Corporate Tax Association (CTA) and the Business Council of Australia (BCA) collectively represent over 200 large corporates that operate in a range of industries across the economy. The CTA and BCA (Joint Bodies) welcome the opportunity to respond to the Payment Times Reporting Exposure Draft Guidance (Draft Guidance).

The major reforms to the Payment Times Reporting Scheme (PTRS) will involve significant and costly changes to systems for companies to comply with. It will be critical that both the Rules and related guidance material allow companies the flexibility to continue to rely on existing systems and processes as much as possible, where they produce the required outcomes. Payment Times Reporting is ultimately the mechanism through which the objectives of faster payment terms and better times and practices for large businesses paying small business suppliers are to be achieved.

The timing of these proposals is problematic. Some changes will be challenging for reporting entities to comply with in practice given that the new rules were finalised halfway through a reporting period and this guidance will not be finalised until the end of the first new reporting period – at the earliest. In addition, this is still a subset of the necessary guidance needed for companies to comply with the revised scheme.

We consider that companies should be provided a blanket extension to lodge by 30 September 2025. Streamlining and improving the quality of reported data was a key reform priority identified as part of the Statutory Review of the Payment Times Reporting Act 2020. A broad extension will better support all reporting entities in achieving this priority.

Read the full joint submission here.