The federal government’s legislation aimed at improving payment times for SMEs has successfully passed the House of Representatives, promising relief for small businesses if it is approved by the Senate.
The government has committed $33.4 million in new funding to implement the reforms.
The proposed legislation, Payment Times Reporting Amendment Bill 2024, will replace the Payment Times Reporting Act 2020, aiming to enhance cash flow and reduce administrative burdens for small businesses.
The reform equips the Payment Times Reporting Regulator, a monitoring and enforcing system for entity compliance, with the necessary tools to ensure timely payments to small businesses.
It also aims to streamline processes, reduce inefficiencies, and minimise regulatory burdens for large businesses required to report their payment practices.
Minister for Small Business, Julie Collins MP, highlighted the importance of the reform for the small business sector to “ensure small businesses are paid on time”.
“The passage of this legislation in the House of Representatives is another important step forward,” said Collins.
The legislation seeks to increase pressure on large businesses by publicly highlighting the best and worst payment performers and encouraging better payment practices across the board.
Collins underlined the government’s dedication to supporting small businesses.
“We know how important this is for Australia’s small businesses, which is why we haven’t wasted any time passing this legislation after introducing it last week,” she said.
“I encourage all Senators to now back this important legislation, which is good for small businesses, good for workers, good for the economy, and good for Australia.”
This legislation is a part of the government’s broader strategy to support small businesses, as outlined in the recent Small Business Statement.
The statement details over $640 million in targeted support designed to ease pressures and create a more equitable business environment.
“Our government will continue to deliver a better deal for small businesses,” Collins said.
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