Helping Australian small businesses receive on-time payment has been a top priority for the Australian Parliament. Why? Because cash flow is the primary reason small businesses fail—and payment terms are a key factor.
That’s why the Payment Times Reporting Bill is rolling out from January 2021. It requires large businesses and government enterprises (with revenues over A$100 million) to report their small business payment terms and times publicly.
In 2017, the ASBFEO issued a report which estimates that $77 billion (27%) of payments made by large companies to small businesses were paid 63 days late on average, resulting in a $7 billion working capital impact.
The Payment Times Reporting Bill aims to:
- provide visibility of payment practices of ‘large’ businesses relative to their ‘small’ business suppliers.
- manage compliance and administrative responsibilities of ‘large’ businesses.
- free up working capital in the economy(~$7Bn).
With significant penalties of up to $66,000 per day imposed for failure to report, large organisations must ensure that they are well prepared to meet these new obligations. Download our flyer to find out how you can prepare and comply.
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About Xcellerate IT
With over 22 years of knowledge and experience in Business Process Automation, Xcellerate IT is a leading Australian provider of powerful digital transformation software, providing innovative solutions to transform and automate information intensive business workflow and robotic processes, across both back and front office operations.
We are proud to have completed projects for over 100 Australian customers. These projects have assisted our customers to embrace the future by offering compliant, transparent and structured processes that meet their individual needs. Xcellerate IT's solutions have powered corporations across various industries including manufacturing, finance, local and state government, education, healthcare and a wide range of companies.