KPMG Payment Insights
Your formula for Payment Times Reporting confidence.
Supporting you on your Payment Times Reporting journey.
The Payment Times Reporting Act is complex and trust in your preparation and metrics is crucial. With the public disclosure of Payment Times Reporting metrics due to commence in late 2021, combined with the introduction of financial penalties from 1 January 2022, it is important to have confidence in your approach, data and metrics. Compliance and reputational risk can be at stake, it’s important to get this right.
Combining the subject matter expertise of our Payment Times Reporting specialists, with our tech-enabled solution, KPMG offers a formula for Payment Times Reporting.
A bespoke formula to get you ready to report
There is no one-size-fits-all solution when it comes to Payment Times Reporting preparation. Our bespoke offering combines specialist knowledge with practical insights gained helping clients across all sectors and industries prepare for Payment Times Reporting.
Prepare
Take the pressure off and power your Payment Times Reporting preparation with KPMG’s Payment Times Reporting specialists and tech-enabled solution. This provides thorough and ongoing reporting to help you streamline your reporting and find insights in your data.
Review
Need a trusted advisor to analyse your in-house approach and logic? We can offer an objective analysis of your internal approach and help you mitigate your Payment Times Reporting risk and proactively improve your performance.
Assurance
Need more confidence in your metrics to provide your Board or Audit Committee with greater confidence? KPMG offers a range of options to give you greater comfort in your metrics and equip you with Board level insights and reporting.
How does it benefit you?
Peace of mind
Confidence in clarity of the legislation and how it applies to your business.
Speed & accuracy
Technology that empowers you to visualise your data, validate it’s correct and assist you with your submissions to government.
Insightful
Insight and strategies that can help address compliance, process and control issues relevant to your metrics.
Clear view of data
Track payment terms and payment practices for small business suppliers and compare data and performance over different time periods.
Efficient
Board reports for fast and efficient approval as mandated by the regulation.
Supported by specialists
Direct access to our Payment Times Reporting Advisory specialists.
How does it work?
Specifically designed in line with the Payment Times Reporting Act, making your submission process easy and efficient.
Data readiness
Use our simple source data upload functionality for all your reporting entities, validate the data quality and identify gaps.
Visualisation and benchmarking
View your supplier payment data and metrics calculations with our interactive dashboard.
Bespoke outputs
Give your board confidence with full visibility over your business' degree of compliance prior to submission with a Board Payment Times Report and Submission Upload template.
Designed by Payment Times Reporting specialists from client insights.
"Combining the expertise of our Payment Times Reporting specialists with our proprietary KPMG Payment Insights technology solution, we offer Australian businesses the necessary insights, speed and accuracy required to report with confidence. Our approach aims to streamline and simplify for our clients what was potentially a labour and time-intensive exercise. Our clients certainly see the value in working with a trusted adviser to assist with their preparations to comply with the evolving guidance materials under the Payment Times Reporting Scheme." Vince Dimasi, National Lead, Working Capital Advisory & Payment Times Reporting KPMG Australia
Payment Times Reporting: what you need to know
The new Payment Times Reporting Act is much more complex to implement and comply with than many organisations might expect.
What is the Payment Times Reporting Scheme?
As a key part of the Federal Government's commitment to improving cash flow and liquidity for small businesses, the new Payment Times Reporting Scheme aims to increase transparency over how large businesses are dealing with small business suppliers and managing payments to them.
Who must report under the Payment Times Reporting Scheme?
From 1 January 2021, large businesses and certain government entities with income greater than $100m are required to report on small business supplier payment terms and practices. Entities assessed as reporting entities will need to report bi-annually and will then have three months at the end of every reporting period to lodge this information with the new Payment Times Reporting Regulator.
Who is the Payment Times Reporting Regulator?
The Australian Government established the Payment Times Reporting Regulator on 1 January 2021. The Regulator administers the scheme, raises awareness and has a broad range of compliance and enforcement powers.
What information needs to be submitted in my Payment Times Reporting Submission?
The reporting requirements are complex and require disclosure by each entity within your group that is assessed to be a Reporting Entity in accordance with the Payment Times Reporting Scheme. There are approximately 60 fields of information that need to be reported on the official Payment Times Reporting Template. The key focus of this information is the proportion, determined by total number and total value, of small business invoices paid by an entity in each of the following periods:
- Within 20 days after the issue day
- 21-30 days after the issue day
- 31-60 days after the issue day
- 61-90 days after the issue day
- More than 120 days after the issue day
The above information needs to be reported by total number and total value, of small business invoices in aggregate against each of the day bands above. These proportions will need to be expressed as percentages only. You are not required to disclose individual supplier names.
How do I identify my Small Business suppliers?
Reporting entities will need to use the official Small Business Identification tool in order to identify suppliers that will be deemed small business suppliers for the purposes of the Payment Times Reporting Act. Reporting entities must use this tool at least once every six months (during their Payment Times Reporting preparation window) to ensure they are reporting accurately on relevant small business supplier payments. The Government’s Small Business Identification tool is the only source of which entities are Small Businesses for the purposes of Payment Times Reporting.
Will my Payment Times Reporting submission be made publicly available?
Yes. All Payment Times Reports will be made publicly available in late 2021 on a new website called the Payment Times Reporting Portal.
What are the potential fines and penalties for non-compliance with the Payment Times Reporting Act?
The new Payment Times Reporting Regulator has a wide array of compliance powers to help enforce compliance with the Payment Times Reporting Act. These include:
- Failure to report
- Provision of false or misleading reports
- Failure to keep records
- Failure to comply with an audit notice
- Failure to reasonably assist the auditor
The potential fines under the Payment Times Reporting Scheme can be quite significant (up to 0.6% of total income) so it is important to ensure that all reporting is accurate and in accordance with the Payment Times Reporting Act and latest available guidance.
Is it possible to apply for an extension to the reporting deadline?
Yes – it is possible to apply for an extension if you are unable to make your lodgement deadline. There are numerous requirements (including deadlines) to apply for an extension and we recommend you contact us to discuss your eligibility and best next steps.