Submission: Payment Times Reporting Act amendments
05/06/2024
ARITA has made a submission to Treasury in relation to proposed amendments to the Payment Times Reporting Act 2020 (Act).
ARITA supports the objective of the amendments to encourage fair payment terms and practices for small businesses, but raised concerns that the Act will provide that the Payment Times Reporting Rules 2020 “may require reports to include different or additional information and documents in certain circumstances. Potential circumstances that would warrant the inclusion of additional or different information and documents in a report include ... where a reporting entity is currently in administration, in a liquidation process, in receivership … subject to a deed of company arrangement."
The proposed Rules were not provided as part of the consultation, and ARITA submitted that care needs to be taken to avoid imposing unnecessary regulatory burden that will consume the limited resources of the distressed company; and in fact may act against the interests of creditors who the law is actually meant to serve.
ARITA has offered to assist with understanding how any proposed requirements under any future Rules would fit within the framework of the Corporations Act.
Read the submission.