• Penny Carroll

Client e-brief - Feb 22

Updated: Mar 24

Payment Times Reports Register

SME Loan Recovery Scheme Extended to June 2022

The SME Loan Recovery Scheme has been extended for another six months It was due to expire at the end of December 2021. The extension means loans under the scheme will remain available until 30th June, 2022.

The Government will reduce its loan guarantee from 80% to 50%, helping drive a private sector-led recovery.

Other key features of the SME Recovery Loan Scheme include:

  • Lenders can offer borrowers a repayment holiday of up to 24 months.

  • Loans can be used for a broad range of business purposes, including to support investment.

  • Loans may be used to refinance any pre-existing debt of an eligible borrower.

  • Loans can be either unsecured or secured (excluding residential property).

Why Apply for the Loan Scheme?

Some sectors still remain under pressure. For those businesses, the extension of the scheme will provide targeted support and will also help to close the funding gap, giving businesses more time to recover.

Businesses need to consider cash flow. Is there money to grow, expand or strengthen the business? Can you stay afloat? If not, discuss your options under the SME Recovery Loan Scheme with your Bookkeeper. Evaluate the benefits each of the banks have to offer.

Participating banks are also offering loans, including overdrafts, at exceptionally low interest rates, to help bridge cash flow gaps. The Australian Banking Association provides some detail on participating banks: The Australian Banking Association – The Business Relief Package

Payment Times Reports Register

How Quickly Does Large Business Pay Small Business?

The Payment Times Reports Register shows information on payments from large businesses, and other reporting entities, to their small business suppliers. Under the scheme, large businesses and certain government enterprises must report their payment terms and times twice a year for small business.

The scheme makes information about large business’s payment performance available to the public and helps small businesses decide who to do business with. This creates incentives for improved payment times and practices. The Payment Times Reporting Regulator (the Regulator) publishes these reports on the Payment Times Reports Register. The register will be available as a downloadable data table of all reports screened by the Regulator from the first reporting period, 1st January 2021 to 30th June 2021.

The reports will be published as received by the Regulator, unless redacted or withheld from publication in accordance with section 20 of the Payment Times Reporting Act 2020.

Scheme Background

The Payment Times Reporting Scheme aims to create transparency around the payment practices of large business entities. It gives small businesses access to information on large business’s payment times and performance. This helps small businesses make informed decisions about who they do business with.

The Scheme applies to:

  • Constitutionally covered entities that carry on an enterprise in Australia.

Where any of the following income tests apply:

  • Large businesses and certain government enterprises with a total annual income of over $100 million.

  • Controlling corporations where the combined total annual income for all members is more than $100 million.

  • Businesses with a total annual income greater than $10 million that are part of a group, headed by a controlling corporation, with a collective income greater than $100 million.

  • Businesses that fall into these categories must register for the scheme through the Payment Times Reporting Portal.

  • Businesses who do not meet these requirements may choose to voluntarily submit a report. Charitable and not-for-profit entities are exempt from the reporting requirements.

  • Reporting entities report twice a year on their payment terms and times for their small business suppliers. The first reporting window opened 1st July 2021.

For more information and to view the reports visit the Payment Times Reporting Regulator’s website.

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