The Albanese Labor Government’s legislation to improve payment times for small businesses has passed the Parliament.
The legislation overhauls the Payment Times Reporting Act 2020 (the Act) and will provide a shot in the arm for small businesses with faster payment times improving cash flow, alleviating administrative burdens and reducing financing costs.
The legislation ensures the Payment Times Reporting Regulator has the appropriate tools to deliver better payment outcomes for small businesses.
It will also reduce regulatory burdens for the big businesses required to report, streamline processes and remove inefficiencies in the Act.
This legislation helps deliver on the Albanese Labor Government’s response to the 2023 Emerson Review of the Act, and underscores our commitment to improve payment times to small businesses.
This response also includes increasing pressure on big businesses to improve payment times by highlighting the best and worst payment performers.
The Government has committed $33.4 million in new funding to implement reforms that will improve payment times for small businesses.
Better payment times benefit everyone with resulting gains to productivity, supporting higher wages and profits, and expanding employment opportunities.
This is just one way the Albanese Labor Government is supporting Australia’s small businesses.
The Government’s Small Business Statement in the recent Budget outlines more than $640 million in targeted supports for small businesses to ease pressure, support small businesses to grow, and level the playing field.
Quotes attributable to Minister for Small Business, Julie Collins MP:
“The passage of this legislation in the Parliament is a big win for Australia’s small businesses.
“Being paid on time is a matter of fairness for Australia’s small businesses which is why we haven’t wasted any time passing this legislation after introducing it to the Parliament.
“I’m pleased the Parliament has backed these important reforms.
“Improving payment times for small businesses was an election commitment, and today’s passage shows we’re delivering.
“Our Government will continue to deliver a better deal for small businesses, with more than $640 million in targeted support outlined in our Small Business Statement.”