The National Electrical and Communications Association (NECA) has welcomed the Federal Government’s Payment Times Reporting Scheme saying it is an important step in ensuring small medium enterprises (SMEs) get paid in full and on time but cautioned that it must not mire business in red tape.  

NECA has long called for improved policy to strengthen security of payment for SMEs, and its efforts were acknowledged in the Senate’s Payment Times Reporting Bill 2020, which introduced the new Scheme. 

Under the Scheme, large businesses and applicable government enterprises with a total annual income of over $100 million will have to report publicly on how and when they pay their small business suppliers. This Scheme will provide unprecedented transparency and will show Australians how big businesses pay their suppliers.

NECA said the Scheme will bring much needed transparency to business payments and help hard working SMEs, but warned it must be simple for businesses to report so it does not become a barrier to big business working with SMEs.  NECA will be working with government to ensure the Scheme is not an unnecessary burden on larger businesses while ensuring it fulfils its aim of protecting payments to smaller businesses.

The Scheme is a positive sign of progress and NECA will continue to advocate for additional protections including further improvements to security of payments, trust account schemes for construction industry project work and enhanced unfair contract term protections.

The Scheme will begin on 1 January 2021.

ENDS