Treasury is inviting feedback on 3 draft guidance notes for the Payment Times Reporting Scheme.

The updated guidance is intended to assist reporting entities to meet their obligations and understand Treasury’s expectations when undertaking compliance activities. The need for updated guidance was identified after reviewing enquiries and reports from the first year of operation of the scheme.

A covered entity carrying on an enterprise in Australia will become a reporting entity at the start of an
income year if in its most recent income year:

• its total income was more than A$100 million;
• for an entity that is a controlling corporation, the combined total income of the
  members of the controlling corporation’s group was more than A$100 million, or
• for an entity that is a member of a controlling corporation’s group that has a
  combined income of more than A$100 million, the total income for the member was
  at least A$10 million.

Reporting entities are required to report on procurement that is made under an arrangement,
agreement or contract that creates a legally binding agreement to pay for goods and services.

Reporting entities must report on an invoice payment if all the following apply:

• The invoice relates to supply of a good or service by a small business supplier.
• The entity procured the good or service from the small business supplier under a
  trade credit arrangement.
• The reporting entity is contractually obliged to pay the invoice.

Reporting entities must report on payment times based on an invoicing date.

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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.