A new report released today shows payment times to small businesses are continuing to improve, with the Albanese Labor Government’s recently legislated reforms providing tools that will deliver even better outcomes.
The July edition of the Payment Times Reporting Regulator’s Update shows in the six months to December 2023, big business reported paying 69.2 per cent of invoices from their small business suppliers within 30 days, a 5.8 percentage point increase from the 63.4 per cent figure when reporting began.
The six months to December 2023 shows the average payment term from big businesses to their small business suppliers is 35 days, a two‑day reduction since the beginning of the Scheme.
However, long payment times remain a significant concern, with more than a third of reporting entities making 95 per cent or more of their small business payments in more than 60 days.
This is why the Albanese Labor Government has passed new laws through the Parliament to strengthen the Payment Times Reporting Act as recommended by Dr Craig Emerson’s review and as part of the Albanese Government’s election commitment to improve payment times to small businesses.
This has overhauled reporting requirements to ensure large businesses are held accountable for poor payment practices, while also recognising fast payers.
The legislation, which passed the Parliament earlier this month, will also provide the Regulator with appropriate tools to incentivise faster payments for the benefit of small businesses.
The Regulator has stepped up the focus on compliance, with an additional 120 entities reporting for the first time after being contacted, plus publishing 99 new records of non‑compliance with reporting obligations on the Register.
This latest reporting update, with more reforms on the way, highlight our commitment to improving payment times as one of the many ways 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:
“This improvement in payment times to small businesses is welcome but our Government knows there is more work to do.
“That’s why the reforms that passed the Parliament earlier this month are so important.
“These reforms ensure the Payment Times Reporting Regulator has the appropriate tools to deliver better payment outcomes for small businesses.
“Improving payment times for small businesses was an election commitment, and the Albanese Labor Government is delivering through these new reforms.
“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.”