Master Electricians will be able to access a public register with the payment terms and times that all large businesses offer from next year.

The new Payment Times Reporting Scheme is aimed at ensuring small business’ get paid for their work and are informed when deciding what large businesses to deal with.

The Scheme, that was first proposed in 2018, will require all companies and government enterprises with an annual income of more than $100 million to report their payment terms and times for their small-business contracts twice per year.

The scheme will come into effect from January 1, 2021 with some large businesses expected to have to report their payment times and terms for the first six months of the year by 30 September 2021.

According to the Department of Industry, the scheme is designed to:

• increase transparency around large business’ payment performance
• help small businesses decide who to do business with
• create incentives for improved payment times and practices
• help the public make decisions about the large businesses they buy from

Master Electricians Australia have advocated to government for better payment terms and times for small businesses and contractors. In 2018, MEA submitted to the Australian Small Business and Family Enterprise Ombudsman’s inquiry into payment times and practices.

Further information about the Payment Times Reporting Scheme can be found on the Industry Department website. More information about the register will be announced in the coming months before the launch.