All businesses that have a combined total income of over $100 million are Reporting Businesses for the PTR laws and will need to submit first reports on by 30 September 2021 for the period of January-June 2021.
The Payment Time Reporting (PTR) requirements which started in January 2021 with the commencement of the Act, require all businesses with over $100 million annual income (in addition to some specifically named types of entities) to report on the time that it takes to pay its invoices.
The Scheme aims to improve payment times to small businesses by increasing transparency allowing businesses and customers to decide who to do business with.
Reporting Businesses are required to use the Small Business Identification (SBI) tool to identify which of their suppliers are small business and to report via the online Payment Time Portal on the nature of those invoices and payment times.
Small Businesses have to opt in to putting their business on the SBI.
The process for a Reporting Business is;
- Gather a list of all suppliers and their ABNs
- Go to the Payment Portal and create a login to gain access to the SBI Tool
- Login to the SBI Tool and use the list to identify those suppliers that are Small Businesses according to the Tool
- Download the Reporting Template and Instructions
- Follow the instructions to complete the .csv file with the suppliers that were identified by the SBI Tool and complete the payment information from the Reporting Businesses own financial system, then upload that information to the Payment Time Report Portal
The Reports will need to be made within 3 months of the end of each 6 month period, so this first reporting period is January-June 2021 and the report is due to be submitted by 30 September 2021, and the next period of July-December 2021 will be need to be submitted by 31 March 2022.
Payment Time Reporting Legislation
Reporting Businesses Information
Small Business information
Elisha Radwanowski BCom(HRM & IR)