Business Council of Australia (BCA) members are supportive of the Payment Times Reporting framework to improve transparency of payment times to small business and complement the voluntary commitments to fast payment through the Australian Supplier Payment Code (ASPC).
Small businesses play a critical role in their communities and across supply chains. That success relies on invoices being paid quickly, in full and on time. The Payment Times Reporting Scheme (PTRS) shines a positive light on large businesses that are paying small businesses promptly. It puts companies that are unfairly extending payment times to small business suppliers under the spotlight and puts pressure on those businesses to change their practices.
The early evidence is clear payment terms and practices have improved. The BCA is committed to further engagement to improve payment times, including working with the Payment Times Reporting Regulator and Australian Small Business and Family Enterprise Ombudsman.
The BCA welcomes the review of the PTRS, and previously called for this review in the development of the PTRS. This is an opportunity to assess its effectiveness, the costs and benefits and any needed improvements or deregulation opportunities.
The guiding principles for the review are welcome and have been used to develop the recommendations in this submission. These principles are:
◼ Incentivises improved payment terms and practices and disincentivises poor behaviour.
◼ Imposes a proportionate regulatory burden.
◼ Is accessible and useful.