Ensuring fairer payment terms for small businesses

first_imgEnsuring fairer payment terms for small businesses Australia’s large businesses will have to report on their use of questionable practices to small business suppliers with the release of the Payment Times Reporting Scheme Rules and Guidance Material.Under the Morrison Government’s Payment Times Reporting Scheme large businesses with a total annual income of over $100 million will have to report publicly on how and when they pay their small business suppliers.The Rules will require large businesses to detail their small business supply chain financing arrangements, such as reverse factoring. This will ensure small businesses are fully informed about the large businesses that use these types of arrangements.Minister for Employment, Skills, Small and Family Business, Senator the Hon Michaelia Cash, said small businesses will for the first time have the opportunity to find out how large businesses pay their small business customers.“This will allow our small businesses to make informed decisions about who they do business with,” Minister Cash said.“Shining a light on large business payment performance will lead to fairer and faster payments for Australia’s 3.5 million small and family businesses.“I welcome the recent decision from major contractor CIMIC Group to move to 30-day payment terms for its small business suppliers next year when the Morrison Government’s Payment Times Reporting Scheme comes into effect.“This clearly demonstrates the role transparency and community expectation have in enforcing faster and fairer payment practices.”Minister Cash said that the Government recognises that supply chain financing can offer a real choice for small businesses but is concerned when these arrangements are used to push out payment times.After an initial 12-month transition period, civil penalties will apply to reporting businesses that fail to report or give the Payment Times Reporting Regulator a false or misleading report. /Public Release. This material comes from the originating organization and may be of a point-in-time nature, edited for clarity, style and length. View in full here. Why?Well, unlike many news organisations, we have no sponsors, no corporate or ideological interests. We don’t put up a paywall – we believe in free access to information of public interest. Media ownership in Australia is one of the most concentrated in the world (Learn more). Since the trend of consolidation is and has historically been upward, fewer and fewer individuals or organizations control increasing shares of the mass media in our country. According to independent assessment, about 98% of the media sector is held by three conglomerates. This tendency is not only totally unacceptable, but also to a degree frightening). Learn more hereWe endeavour to provide the community with real-time access to true unfiltered news firsthand from primary sources. It is a bumpy road with all sorties of difficulties. We can only achieve this goal together. Our website is open to any citizen journalists and organizations who want to contribute, publish high-quality insights or send media releases to improve public access to impartial information. You and we have the right to know, learn, read, hear what and how we deem appropriate.Your support is greatly appreciated. All donations are kept completely private and confidential.Thank you in advance!Tags:AusPol, Australia, business, cash, community, Effect, employment, Family, Government, Minister, Morrison, Morrison Government, penalty, Skills, Small Business, supply chainlast_img read more