Payment Times Reporting Act 2020

No. 91, 2020

Compilation No. 5

Compilation date: 21 February 2025

Includes amendments: Act No. 14, 2025

About this compilation

This compilation

This is a compilation of the Payment Times Reporting Act 2020 that shows the text of the law as amended and in force on 21 February 2025 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Editorial changes

For more information about any editorial changes made in this compilation, see the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.

Self - repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

Contents

Part 1—Preliminary 1

1 Short title 1

2 Commencement 1

3 Objects of this Act 2

4 Simplified outline of this Act 2

5 Definitions 3

6 Meaning of constitutionally covered entity 8

7 Meaning of reporting entity 9

8 Meaning of reporting period 10

9 Act binds the Crown 12

10 Extension to external Territories 12

Part 1A—Provisions about reporting entities and reporting nominees 13

Division 1—Introduction 13

10A Simplified outline of this Part 13

Division 2—Volunteering entities 14

10B Volunteering entity determination 14

10C Application for Regulator to make a volunteering entity determination 15

10D Revocation of volunteering entity determination 15

Division 3—Subsidiary reporting entities 17

10E Subsidiary reporting entity determination 17

10F Application for Regulator to make a subsidiary reporting entity determination 18

10G Revocation of subsidiary reporting entity determination 19

Division 4—Ceasing to be a reporting entity 21

10H Notice that entity has ceased to be a reporting entity 21

10J Reporting entities must not give false or misleading notices 22

10K Regulator may determine that entity is to cease to be a reporting entity 23

Division 5—Reporting nominees 25

10L Reporting nominee determination 25

10M Application for Regulator to make a reporting nominee determination 26

10N Revocation of reporting nominee determination 27

Division 6—Exempt entities 29

10P Exempt entity determination 29

10Q Application for Regulator to make an exempt entity determination 30

10R Revocation of exempt entity determination 30

Division 7—Entity information 32

10S Requirement to provide entity information 32

Part 2—Reporting payment times 33

Division 1—Introduction 33

11 Simplified outline of this Part 33

Division 2—Reporting payment times 35

12 Reporting entities and reporting nominees must report payment times 35

13 When report must be given 35

13A Extension of time to give report—single extension of 28 days or less 35

13B Extension of time to give report—other extensions 36

14 Reporting requirements 37

15 Civil penalty provision for failure to report 39

16 Reporting entities and reporting nominees must not give false or misleading reports 39

Division 3—Access to payment times reports 41

17 Payment Times Reports Register 41

18 Contents of register 41

19 Revised payment times reports 42

20 Regulator may remove certain information 42

21 Removal or non-publication of payment times reports for volunteering entities that fail to comply with Act 43

22 Publication of information about failure to comply with Act 43

22A Publication of other information 44

Division 4—Slow small business payers 45

22B Minister may give slow small business payer direction 45

22C Other provisions about giving slow small business payer directions 46

22D Slow small business payers 47

22E Requirements that may be included in slow small business payer direction 48

22F Duration of slow small business payer direction 49

22G Civil penalty provision for failure to comply with slow small business payer direction 50

22H Publication on Register 50

Division 5—Fast small business payers 51

22J Fast small business payers 51

22K List of fast small business payers 51

22L False representations in relation to fast small business payers 52

Part 3—Payment Times Reporting Regulator 53

Division 1—Introduction 53

23 Simplified outline of this Part 53

Division 2—Payment Times Reporting Regulator 54

24 Payment Times Reporting Regulator 54

25 Functions of the Regulator 54

26 Powers of the Regulator 55

27 Delegation by the Regulator 55

Division 3—Applications made to the Regulator 56

27A Requirements for applications made to the Regulator 56

27B Fees for applications made to the Regulator 57

Part 4—Compliance and enforcement 59

Division 1—Introduction 59

28 Simplified outline of this Part 59

Division 2—Obligations of reporting entities and reporting nominees 60

29 Record-keeping requirements—reporting entities 60

29A Record-keeping requirements—reporting nominees 60

30 Compliance audits 61

Division 2A—Information-gathering powers 64

30A Regulator may obtain information 64

30B Civil penalty provision for failure to comply with notice 64

Division 3—Regulatory powers 65

31 Monitoring powers 65

32 Investigation powers 66

33 Civil penalty provisions 67

34 Infringement notices 69

34A Enforceable undertakings 70

35 Appointment of authorised officers 70

36 Appointment of infringement officers 71

Part 5—Protected information 72

Division 1—Introduction 72

38 Simplified outline of this Part 72

Division 2—Authorised use or disclosure 73

39 Performing functions or exercising powers under this Act 73

40 Policy development 73

40A Compliance auditors 73

41 Proceedings etc. 73

42 Enforcement related activity 73

43 Information required by another Australian law 74

44 Person to whom information relates—disclosure and consent 74

45 Person who provided information 74

Division 3—Unauthorised use or disclosure 75

46 Unauthorised use or disclosure 75

Part 6—Miscellaneous 76

Division 1—Introduction 76

47 Simplified outline of this Part 76

Division 2—Treatment of certain kinds of entities 77

48 Treatment of partnerships 77

49 Treatment of unincorporated associations or bodies of persons 77

50 Treatment of trusts and superannuation funds and approved deposit funds that are trusts 78

Division 3—Reviewable decisions 80

51 Reconsideration and review of decisions 80

52 Application for reconsideration of reviewable decision 81

53 Reconsideration of reviewable decision 81

54 Review by the Administrative Review Tribunal—reconsideration decisions 83

54AA Review by the Administrative Review Tribunal—decisions made by the Minister 83

Division 4—Other matters 84

55 Former reporting entities 84

55A Former reporting nominees 84

55B Delegation by the Minister 85

56 Annual report 85

57 Protection against civil liability 86

57A Review of operation of this Act 86

57B Requirements for review 86

58 Rules 87

Endnotes 89

Endnote 1—About the endnotes 89

Endnote 2—Abbreviation key 91

Endnote 3—Legislation history 92

Endnote 4—Amendment history 93

An Act to provide for certain entities to report payment terms, times and practices, and for related purposes

1 Preliminary

1 Short title

This Act is the Payment Times Reporting Act 2020.

2 Commencement 1

Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

Commencement information	Commencement information	Commencement information
Column 1	Column 2	Column 3
Provisions	Commencement	Date/Details
1. The whole of this Act	As follows: (a) if this Act receives the Royal Assent before 1 January 2021—1 January 2021; (b) if this Act receives the Royal Assent on or after 1 January 2021—the first 1 January or 1 July to occur after the day this Act receives the Royal Assent.	1 January 2021 (paragraph (a) applies)

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3 Objects of this Act

The objects of this Act are:

to promote timely payment practices by large businesses, certain government entities and volunteering entities; and

to foster a culture of prompt payment practices by those entities to:

support economic growth; and

improve outcomes for small business suppliers; and

to encourage those entities to improve their payment terms, times and practices in relation to their small business suppliers; and

to provide for those entities to report on payment terms, times and practices in relation to their small business suppliers; and

to improve the transparency of the payment terms, times and practices of large businesses.

4 Simplified outline of this Act

This Act requires certain entities to report their payment terms, times and practices, and those of certain other entities they control, in relation to their small business suppliers. Other entities may volunteer or nominate to give reports.

A reporting entity or reporting nominee must give regular reports to the Payment Times Reporting Regulator. These reports are published on a publicly available register, known as the Payment Times Reports Register.

The Regulator is to be an SES employee in the Department. The functions of the Regulator include monitoring and enforcing compliance with this Act, and undertaking research and publishing reports and analysis on the payment terms, times and practices of reporting entities and reporting nominees.

5 Definitions

In this Act:

accounting standards has the same meaning as in the Corporations Act 2001.

Australia has the same meaning as in the Income Tax Assessment Act 1997.

Australian and New Zealand Standard Industrial Classification means the Australian and New Zealand Standard Industrial Classification (ANZSIC) 2006, as published from time to time by the Australian Bureau of Statistics.

Australian law means a law of the Commonwealth, or of a State or Territory.

authorised officer means a person appointed as an authorised officer under subsection 35(1).

carries on business in Australia: an entity carries on business in Australia if the entity:

(a) in the case of a body corporate—carries on business in Australia, a State or a Territory within the meaning of the Corporations Act 2001 (see section 21 of that Act); or

in any other case—would be taken to do so within the meaning of that Act if the entity were a body corporate.

carrying on an enterprise includes doing anything in the course of the commencement or termination of the enterprise.

civil penalty provision has the same meaning as in the Regulatory Powers Act.

commercial-in-confidence has the meaning given by subsection 20(3).

consolidated revenue, of an entity, means:

the total revenue of the entity, for a financial year; or

if the entity controls another entity or entities—the total revenue of the entity and all of the controlled entities, considered as a group, for a financial year of the controlling entity;

worked out in accordance with the accounting standards, even if those standards do not otherwise apply to such an entity (including a controlling entity) or group.

constitutional corporation means a corporation to which paragraph 51(xx) of the Constitution applies.

constitutionally covered entity has the meaning given by section 6.

control, of an entity by another entity, means control of the entity within the meaning of the accounting standards.

enforcement body has the same meaning as in the Privacy Act 1988.

enforcement related activity has the same meaning as in the Privacy Act 1988.

engage in conduct means:

do an act; or

omit to perform an act.

enterprise has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999.

entity has the same meaning as in the Income Tax Assessment Act 1997.

entrusted person means:

the Secretary; or

the Regulator; or

an APS employee in the Department; or

any other person employed in or engaged by the Department.

exempt entity means an entity in relation to which a determination under subsection 10P(1) is in effect.

fast small business payer: see subsection 22J(1).

Federal Court means the Federal Court of Australia.

financial year, in relation to an entity:

(a) if a paragraph of the definition of financial year in section 9 of the Corporations Act 2001 applies to the entity—has the meaning given by that definition; or

otherwise—means an income year for the entity.

foreign entity has the same meaning as in the Income Tax Assessment Act 1997.

income tax has the same meaning as in the Income Tax Assessment Act 1997.

income year for an entity:

(a) has the same meaning as in the Income Tax Assessment Act 1997; or

if income tax is not payable by the entity under that Act—means:

a period of 12 months starting on 1 July; or

if the rules prescribe a period of 12 months—the prescribed period.

internal decision reviewer has the meaning given by subsection 53(1).

issuing officer means:

a magistrate; or

a Judge of the Federal Court or the Federal Circuit and Family Court of Australia (Division 2).

list of fast small business payers means the list maintained and published on the register in accordance with section 22K.

payment times report means a report prepared for the purposes of Division 2 of Part 2 (reporting payment times).

Payment Times Small Business Identification Tool has the meaning prescribed by the rules.

principal governing body, of an entity, means:

the body, or group of members of the entity, with primary responsibility for the governance of the entity; or

if the entity is of a kind prescribed by the rules—a prescribed body within the entity, or a prescribed member or members of the entity.

Example: Examples of principal governing bodies are as follows:

for a company—the company’s board of directors;

for a superannuation fund—the fund’s board of trustees.

protected information means information obtained under, or in accordance with, this Act.

provisional reporting period, of an entity, means a period in a financial year:

if the entity is a reporting entity or a reporting nominee for the whole of the financial year—that is a reporting period of the entity in the financial year; or

otherwise—that would be a reporting period for the entity if the entity were a reporting entity or a reporting nominee for the whole of the financial year.

reconsideration decision means a decision made under subsection 53(2).

Regulator has the meaning given by subsection 24(3).

Regulatory Powers Act means the Regulatory Powers (Standard Provisions) Act 2014.

relevant court means:

the Federal Court; or

the Federal Circuit and Family Court of Australia (Division 2); or

a court of a State or Territory that has jurisdiction in relation to matters arising under this Act.

reporting cycle: each of the following is a reporting cycle:

a period of 6 months starting on 1 January;

a period of 6 months starting on 1 July.

reporting entity has the meaning given by section 7.

reporting nominee means an entity in relation to which a determination under subsection 10L(1) is in effect.

reporting period has the meaning given by section 8.

responsible member, of an entity, in relation to a requirement under this Act that a report, application or other matter be approved, means:

Note: See also section 55 (former reporting entities).

Note: See also section 55A (former reporting nominees).

an individual member of the entity’s principal governing body who is authorised to approve the report, application or other matter; or

if the entity is a trust administered by a sole trustee—that trustee; or

if the entity is a corporation sole—the individual constituting the corporation; or

(d) if the entity is under administration within the meaning of the Corporations Act 2001—the administrator; or

if the entity is of a kind prescribed by the rules—a prescribed member of the entity.

reviewable decision: see section 51.

rules means rules made under section 58.

Secretary means the Secretary of the Department.

slow small business payer: see section 22D.

slow small business payer direction means a direction given under subsection 22B(1).

small business means an entity described as a small business in the Payment Times Small Business Identification Tool.

small business invoice means a document, notifying an obligation to make a payment, issued to an entity by a small business supplier of the entity.

small business supplier means a small business that supplies goods or services to the entity.

subsidiary reporting entity means an entity in relation to which a determination under subsection 10E(1) is in effect.

this Act includes the rules.

total income has the same meaning as in section 3C of the Taxation Administration Act 1953.

use includes making a record of the information.

volunteering entity means a reporting entity that is a reporting entity only because of a determination under subsection 10B(1).

6 Meaning of constitutionally covered entity

Each of the following is a constitutionally covered entity:

a constitutional corporation;

(b) a foreign entity;

an entity, other than a body politic, that carries on an enterprise in a Territory;

a body corporate that is incorporated in a Territory;

(e) a body corporate that is taken to be registered in a Territory under Corporations Act 2001;section 119A of the

(f) a corporate Commonwealth entity, or a Commonwealth company, within the meaning of the Public Governance, Performance and Accountability Act 2013.

7 Meaning of reporting entity 1

(1) A constitutionally covered entity becomes a reporting entity at the start of a financial year for the entity if the entity is covered by subsection (2).

An entity is covered by this subsection if:

the entity:

carries on business in Australia; or

is a company that is incorporated in Australia; or

iii

is a company that is not incorporated in Australia, but has either its central management and control in Australia, or its voting power controlled by shareholders who are residents of Australia; or

(iv) is a corporate Commonwealth entity, or a Commonwealth company, within the meaning of the Public Governance, Performance and Accountability Act 2013; and

the entity’s consolidated revenue for the previous financial year is more than $100 million; and

the entity is not controlled by another entity that is a reporting entity; and

(d) the entity is not registered under the Australian Charities and Not-for-profits Commission Act 2012.

(3) If the Regulator determines under subsection 10B(1) that a constitutionally covered entity is a reporting entity, the entity becomes a reporting entity at the time the determination takes effect (unless the reporting entity is already a reporting entity at that time).

Note: An entity that a determination under subsection 10B(1) applies to is a volunteering entity (see the definition of volunteering entity in section 5).

(4) If the Regulator determines under subsection 10E(1) that a constitutionally covered entity is a subsidiary reporting entity, the entity becomes a reporting entity at the time the determination takes effect (unless the subsidiary reporting entity is already a reporting entity at that time).

Ceasing to be a reporting entity

(5) A reporting entity continues to be a reporting entity until:

if the entity is a volunteering entity—the determination under subsection 10B(1) that relates to the entity is revoked, or taken to be revoked, under subsection 10D(2), (3) or (7); or

if the entity is a subsidiary reporting entity—the determination under subsection 10E(1) that relates to the entity is revoked under section 10G; or

a notice under subsection 10H(2) (notice that entity has ceased to be a reporting entity) takes effect; or

the entity ceases to be a reporting entity under subsection 10K(2) (Regulator may determine that entity is to cease to be a reporting entity).

8 Meaning of reporting period 1

(1) Subject to subsections (2) and (4), each of the following is a reporting period for a reporting entity:

the first 6 months of each financial year for the entity in which the entity is a reporting entity;

the remainder of each such financial year.

Volunteering entities

If a volunteering entity becomes a reporting entity on a day in a financial year for the entity that is not the first day of that financial year, any part of that financial year before the day the entity becomes a reporting entity is not a reporting period, or part of a reporting period, for the entity.

Reporting nominees

(3) A reporting period for a reporting nominee is any period, in a financial year, to which both of the following apply:

a determination under subsection 10L(1) is in effect for the entity for the whole of the period;

the period would be a reporting period for the reporting nominee if the reporting nominee were a reporting entity for the whole of the financial year (subject to subsection (4)).

Reporting periods where an entity’s financial year changes

If:

a reporting entity’s financial year changes; and

as a result of the change, the entity has a financial year that is longer or shorter than 12 months;

then, subject to subsection (2), the entity has the following reporting periods in that financial year:

if there is a period of 6 months that begins at the start of the financial year and falls entirely within the financial year—that period;

subject to subsection (5)—each subsequent period (if any) of 6 months that falls entirely within the financial year;

any period of less than 6 months that remains in the financial year after applying paragraphs (c) and (d).

If:

(a) Corporations Act 2001 applies to a reporting entity; andsection 323D of the

a financial year of the entity is made longer under subsection (2) of that section;

then the period of 6 months mentioned in paragraph (4)(d) of this section, as it applies to that financial year, is taken to include the days by which the financial year was made longer.

Note: Subsection 323D(2) of the Corporations Act 2001 provides for the financial years of certain kinds of entities to be made longer (or shorter) by a period of not more than 7 days.

9 Act binds the Crown 1

This Act binds the Crown in each of its capacities.

This Act does not make the Crown liable to be prosecuted for an offence.

Note: In addition, the Crown in right of the Commonwealth is not liable to a pecuniary penalty or to be given an infringement notice in relation to contraventions of this Act: see subsections 33(4) and 34(4).

10 Extension to external Territories

This Act extends to every external Territory.

1A Provisions about reporting entities and reporting nominees 1 Introduction

10A Simplified outline of this Part

This Part provides for various ways that an entity can become, or cease to be, a reporting entity.

This Part also provides for entities to nominate as reporting nominees, and provide payment times reports relating to other entities they control.

Division 2 provides for a constitutionally covered entity to apply to the Regulator to volunteer to be a reporting entity.

Division 3 provides for subsidiary reporting entities. A constitutionally covered entity, that is controlled by another entity that is a reporting entity, may apply to the Regulator to become a reporting entity in its own right.

Division 4 provides for ways for an entity to cease to be a reporting entity.

Division 5 provides for reporting nominees.

Division 6 provides for the Regulator to exempt reporting entities and reporting nominees from reporting obligations.

Division 7 provides for the rules to require reporting entities and reporting nominees to give information about themselves, and other entities they control, to the Regulator.

2 Volunteering entities

10B Volunteering entity determination 1

(1) The Regulator may determine, in writing, that a constitutionally covered entity is a reporting entity if:

the entity applies to the Regulator under subsection 10C(1); and

the Regulator is satisfied that:

the entity is not a reporting entity as a result of becoming a reporting entity under subsection 7(1); and

the entity is not controlled by another entity that is a reporting entity.

Note 1: An entity to which a determination under this subsection applies is a volunteering entity (see the definition of volunteering entity in section 5).

Note 2: A decision not to determine that an entity is a reporting entity is reviewable: see section 51.

A determination under subsection (1) takes effect at the time specified in the determination, which must be:

the time specified in the application for the purposes of subsection 10C(2); or

if the application does not specify a time for the purposes of subsection 10C(2)—at the start of the first provisional reporting period of the entity that begins after the Regulator makes the determination.

Despite paragraph (2)(a), the time specified in the determination may be the start of the first provisional reporting period of the entity that begins after the Regulator makes the determination, if the Regulator considers it appropriate in all the circumstances for the determination to take effect at that time.

A determination under subsection (1) is not a legislative instrument.

10C Application for Regulator to make a volunteering entity determination 1

(1) A constitutionally covered entity (the applicant) may apply, in writing, for the Regulator to determine, under subsection 10B(1), that the applicant is a reporting entity.

Note: See section 27A (requirements for applications made to the Regulator).

An application under subsection (1) may specify the time when the applicant proposes the determination to take effect, which must be either:

the start of the provisional reporting period of the applicant in which the application is made; or

the start of the provisional reporting period of the applicant that follows the provisional reporting period mentioned in paragraph (a).

10D Revocation of volunteering entity determination

Automatic revocation

A determination under subsection 10B(1) that relates to an entity is taken to be revoked if the entity becomes a reporting entity under subsection 7(1).

A determination under subsection 10B(1) that relates to an entity is taken to be revoked if the entity begins to be controlled by another entity that is a reporting entity.

Revocation by Regulator

The Regulator may revoke a determination under subsection 10B(1), by written notice given to the entity to which the determination relates, if the Regulator reasonably suspects that the entity has failed to comply with this Act.

Note: A decision to revoke a determination under subsection 10B(1) that an entity is a reporting entity is reviewable: see section 51.

The revocation takes effect on the day specified in the notice, which may be before the Regulator revokes the determination.

Revocation on notice by reporting entity

If:

the Regulator has made a determination under subsection 10B(1) in respect of a reporting entity; and

the determination has not been revoked;

the entity may, by written notice to the Regulator, inform the Regulator that the entity wishes to cease to be a volunteering entity.

A notice under subsection (5) must specify the time when the determination under subsection 10B(1) is to be revoked, which must be either:

the start of the reporting period of the entity in which the entity gives the notice to the Regulator; or

the start of the reporting period of the entity that follows the reporting period mentioned in paragraph (a) of this subsection.

If a reporting entity gives the Regulator a notice under subsection (5), the determination mentioned in paragraph (5)(a) is taken to be revoked at the time specified in the notice for the purposes of paragraph (6)(a) or (b).

3 Subsidiary reporting entities

10E Subsidiary reporting entity determination 1

(1) The Regulator may determine, in writing, that a constitutionally covered entity is a subsidiary reporting entity if:

the entity applies to the Regulator under subsection 10F(1); and

the entity is controlled by another entity that is a reporting entity; and

the Regulator is satisfied that granting the application:

would not be contrary to the public interest; and

would be consistent with the objects of this Act; and

the Regulator is satisfied of any other matters prescribed by the rules.

Note 1: A subsidiary reporting entity becomes a reporting entity when the determination under this subsection takes effect (see subsection 7(4)).

Note 2: Rules made for the purposes of section 14 may provide that:

a payment times report given by a subsidiary reporting entity must include information about the payment terms, times and practices of the entity and other entities that the entity controls; and

that information is not required to be included in a payment times report given by the reporting entity that controls the subsidiary reporting entity.

Note 3: Rules made for the purposes of section 14 may make other provision in relation to subsidiary reporting entities.

Note 4: A decision not to determine that an entity is a subsidiary reporting entity is reviewable: see section 51.

In deciding whether to make a determination under subsection (1), the Regulator must have regard to any matters prescribed by the rules.

When determination takes effect

A determination under subsection (1) takes effect at the time specified in the determination, which must be:

the time specified in the application for the purposes of subsection 10F(2); or

if the application does not specify a time for the purposes of subsection 10F(2)—at the start of the first provisional reporting period of the entity that begins after the Regulator makes the determination.

Despite paragraph (3)(a), the time specified in the determination may be the start of the first provisional reporting period of the entity that begins after the Regulator makes the determination, if the Regulator considers it appropriate in all the circumstances for the determination to take effect at that time.

Determination is not a legislative instrument

A determination under subsection (1) is not a legislative instrument.

10F Application for Regulator to make a subsidiary reporting entity determination 1

(1) A constitutionally covered entity (the applicant) may apply, in writing, for the Regulator to determine, under subsection 10E(1), that the applicant is a subsidiary reporting entity.

Note: See section 27A (requirements for applications made to the Regulator).

An application under subsection (1) may specify the time when the applicant proposes the determination to take effect, which must be either:

the start of the provisional reporting period of the applicant in which the applicant gives the application to the Regulator; or

the start of the provisional reporting period of the applicant that follows the reporting period mentioned in paragraph (a).

10G Revocation of subsidiary reporting entity determination

Revocation by Regulator

The Regulator may revoke a determination under subsection 10E(1) by written notice given to the subsidiary reporting entity to which the determination relates.

Note: A decision to revoke a determination that an entity is a subsidiary reporting entity is reviewable: see section 51.

A revocation under subsection (1) takes effect at the time specified in the notice, which must be either:

the start of the reporting period of the entity in which the Regulator gives the notice; or

the start of the reporting period of the entity that follows the reporting period mentioned in paragraph (a) of this subsection.

Revocation on notice by reporting entity

If:

the Regulator has made a determination under subsection 10E(1) in respect of an entity; and

the determination has not been revoked;

the entity may, by written notice to the Regulator, inform the Regulator that the entity wishes to cease to be a subsidiary reporting entity.

A notice under subsection (3) must specify the time when the determination under subsection 10E(1) is to be revoked, which must be either:

the start of the reporting period of the entity in which the entity gives the notice to the Regulator; or

the start of the reporting period of the entity that follows the reporting period mentioned in paragraph (a) of this subsection.

If a subsidiary reporting entity gives the Regulator a notice under subsection (3), the determination mentioned in paragraph (3)(a) is taken to be revoked at the time specified in the notice for the purposes of paragraph (4)(a) or (b).

4 Ceasing to be a reporting entity

10H Notice that entity has ceased to be a reporting entity 1

A reporting entity ceases to be a reporting entity if:

the entity is not:

a volunteering entity; or

a subsidiary reporting entity; and

any of the following circumstances exist:

paragraph 7(2)(a) does not apply to the entity;

the entity’s consolidated revenue for each of the 2 previous financial years was not more than $100 million;

iii

the entity is controlled by another entity that is a reporting entity;

(iv) the entity is registered under the Australian Charities and Not-for-profits Commission Act 2012; and

the reporting entity gives the Regulator a notice under subsection (2); and

the notice takes effect under subsection (5).

Giving of notice

A reporting entity may give the Regulator a notice for the purposes of paragraph (1)(c).

The notice:

must be given in the form and manner (if any) approved in an instrument under subsection (4); and

must state the name of the reporting entity; and

must state which circumstance or circumstances mentioned in paragraph (1)(b) exist; and

must be approved in writing by a responsible member of the entity; and

must state the name of the responsible member of the entity who approved the notice.

The Regulator may, by notifiable instrument, approve a form or manner for the purposes of paragraph (3)(a).

When notice takes effect

The notice takes effect at the start of the reporting period in which the notice is given, but only if one or more subparagraphs of paragraph (1)(b) apply to the entity at the start of that reporting period.

Note: If no subparagraphs of paragraph (1)(b) apply to the entity at the start of the reporting period, the entity does not cease to be a reporting entity and must continue to give payment times reports.

Withdrawing a notice

An entity that has given a notice under subsection (2) may, by written notice given to the Regulator, withdraw the notice (even if the entity has ceased to be a reporting entity).

If an entity withdraws, under subsection (6), a notice given under subsection (2):

the notice under subsection (2) is taken never to have had effect; and

the entity is taken not to have ceased to be a reporting entity because of the notice.

10J Reporting entities must not give false or misleading notices 1

A reporting entity is liable to a civil penalty if:

the entity gives the Regulator a notice under subsection 10H(2); and

the notice is false or misleading in a material particular.

Civil penalty: 350 penalty units.

For the purposes of subsection (1), the reference in paragraph 82(5)(a) of the Regulatory Powers Act to 5 times the pecuniary penalty specified for the civil penalty provision has effect as if it were a reference to 0.6% of the total income for the person for the income year in which the contravention occurred.

Note: This subsection modifies the maximum pecuniary penalty that a body corporate can be ordered to pay for a contravention of subsection (1).

10K Regulator may determine that entity is to cease to be a reporting entity 1

The Regulator may determine, in writing, that a reporting entity is to cease to be a reporting entity at the time specified under subsection (2), if:

the entity is not:

a volunteering entity; or

a subsidiary reporting entity; and

the Regulator is satisfied that:

the entity has ceased to exist; or

paragraph 7(2)(a) does not apply to the entity; or

iii

the entity’s consolidated revenue for each of the 2 most recent financial years was not more than $100 million; or

the entity is controlled by another entity that is a reporting entity; or

(v) the entity is registered under the Australian Charities and Not-for-profits Commission Act 2012; or

a circumstance prescribed by the rules applies.

Note: A decision to determine that a reporting entity is to cease to be a reporting entity is reviewable: see section 51.

If the Regulator makes a determination under subsection (1) in relation to an entity, the entity ceases to be a reporting entity at the time specified in the determination, which must be either:

the start of the reporting period of the entity in which the determination is made; or

the start of the reporting period of the entity that follows the reporting period mentioned in paragraph (a).

The Regulator must give written notice of a determination under subsection (1) to the entity concerned.

To avoid doubt, a determination under subsection (1) that relates to an entity does not prevent the entity becoming a reporting entity again.

Determination is not a legislative instrument

A determination under subsection (1) is not a legislative instrument.

5 Reporting nominees

10L Reporting nominee determination 1

(1) The Regulator may determine, in writing, that a constitutionally covered entity (the first entity) is a reporting nominee for one or more other entities (the other entities) specified in the determination if:

the first entity applies to the Regulator under subsection 10M(1); and

the application specifies each of the other entities for the purposes of paragraph 10M(2)(a); and

the Regulator is satisfied that the first entity controls each of the other entities; and

the Regulator is satisfied that at least one of the other entities is a reporting entity; and

the Regulator is satisfied that each of the other entities that is a reporting entity has consented to the first entity being a reporting nominee for that other entity; and

the Regulator is satisfied that the first entity is not a reporting entity; and

the Regulator is satisfied that granting the application:

would not be contrary to the public interest; and

would be consistent with the objects of this Act; and

the Regulator is satisfied of any other matters prescribed by the rules.

Note 1: The determination does not result in the reporting nominee becoming a reporting entity.

Note 2: If any of the other entities are reporting entities, the determination does not result in those entities ceasing to be reporting entities. However, rules made for the purposes of section 14 may prescribe different reporting requirements for different circumstances (see subsections 14(3) and (4)). For example, the rules may provide that a report given by one of the other entities need not include certain information that is required to be included in the reporting nominee’s report.

Note 3: A decision not to determine that an entity is a reporting nominee is reviewable: see section 51.

In deciding whether to make a determination under subsection (1), the Regulator must have regard to any matters prescribed by the rules.

When determination takes effect

A determination under subsection (1) takes effect at the time specified in the determination, which must be:

the time specified in the application for the purposes of paragraph 10M(2)(b); or

if the application does not specify a time for the purposes of paragraph 10M(2)(b)—at the start of the first provisional reporting period of the first entity that begins after the Regulator makes the determination.

Despite paragraph (3)(a), the time specified in the determination may be the start of the first provisional reporting period of the first entity that begins after the Regulator makes the determination, if the Regulator considers it appropriate in all the circumstances for the determination to take effect at that time.

Determination is not a legislative instrument

A determination under subsection (1) is not a legislative instrument.

10M Application for Regulator to make a reporting nominee determination 1

(1) A constitutionally covered entity (the applicant) may apply, in writing, for the Regulator to determine under subsection 10L(1) that the applicant is a reporting nominee for one or more other entities.

Note: See section 27A (requirements for applications made to the Regulator).

An application under subsection (1):

must identify the other entity or entities; and

may specify the time when the applicant proposes the determination to take effect, which must be either:

the start of the provisional reporting period of the applicant in which the applicant gives the application to the Regulator; or

the start of the provisional reporting period of the applicant that follows the provisional reporting period mentioned in subparagraph (i).

10N Revocation of reporting nominee determination 1

The Regulator may revoke a determination under subsection 10L(1) by written notice given to:

the reporting nominee; and

each reporting entity to which the determination relates.

Note: A decision to revoke a determination that an entity is a reporting nominee is reviewable: see section 51.

A revocation under subsection (1) takes effect on the day specified in the notice, which must be either:

the start of the reporting period of the reporting nominee in which the Regulator gives the notice; or

the start of the reporting period of the reporting nominee that follows the reporting period mentioned in paragraph (a) of this subsection.

Revocation on notice by reporting nominee or reporting entity

If:

the Regulator has made a determination under subsection 10L(1) that an entity is a reporting nominee for one or more other entities; and

the determination has not been revoked;

the reporting nominee, or any of the other entities that is a reporting entity, may, by written notice to the Regulator, inform the Regulator that the determination is to be revoked.

A notice under subsection (3) must specify the time when the determination under subsection 10L(1) is to be revoked, which must be either:

the start of the reporting period of the reporting nominee in which the notice is given to the Regulator; or

the start of the reporting period of the reporting nominee that follows the reporting period mentioned in paragraph (a) of this subsection.

If the Regulator is given a notice under subsection (3), the determination mentioned in paragraph (3)(a) is taken to be revoked at the time specified in the notice for the purposes of paragraph (4)(a) or (b).

6 Exempt entities

10P Exempt entity determination 1

(1) The Regulator may determine, in writing, that an entity that is a reporting entity or a reporting nominee is an exempt entity if:

the entity applies to the Regulator under subsection 10Q(1); and

the Regulator is satisfied that:

the entity is a reporting entity or a reporting nominee; and

it is appropriate in the circumstances to make the determination, having regard to the objects of this Act.

Note 1: An exempt entity is not required to give certain payment times reports (see subsections 12(2) and (4)).

Note 2: A decision not to determine that an entity is an exempt entity is reviewable: see section 51.

The Regulator may impose conditions on a determination under subsection (1).

When exemption has effect

A determination under subsection (1) must specify:

any conditions imposed under subsection (2); and

the time the determination takes effect, which:

may be, but need not be, the time (if any) specified in the application under subsection 10Q(2); and

may be before the day the determination is made; and

the time the determination ceases to have effect, which must be no more than 2 years after the determination takes effect.

The determination takes effect, and ceases to have effect, as specified under paragraphs (3)(b) and (c).

Determination is not a legislative instrument

A determination under subsection (1) is not a legislative instrument.

10Q Application for Regulator to make an exempt entity determination 1

(1) An entity (the applicant) that is a reporting entity or a reporting nominee may apply, in writing, for the Regulator to determine, under subsection 10P(1), that the applicant is an exempt entity.

Note: See section 27A (requirements for applications made to the Regulator).

An application under subsection (1) may specify the time that the applicant proposes the determination to take effect.

10R Revocation of exempt entity determination 1

The Regulator may revoke a determination under subsection 10P(1), by written notice given to the exempt entity to which the determination relates, if the Regulator is satisfied that:

the entity has failed to comply with a condition imposed on the determination under subsection 10P(2); or

it is no longer appropriate in the circumstances for the entity to be an exempt entity.

Note: A decision to revoke a determination that an entity is an exempt entity is reviewable: see section 51.

A revocation under subsection (1) takes effect on the day specified in the notice, which may be a day before the day the notice is given to the exempt entity.

To avoid doubt, if a revocation under subsection (1) takes effect on a day before the day the notice is given, the entity concerned is taken not to have been an exempt entity on or after the day the revocation takes effect (including for the purposes of subsections 12(2) and (4)).

Timeframe for reporting

If:

(a) a revocation under subsection (1) takes effect on a day that is before the day (the notice day) on which the notice is given; and

the revocation results in a reporting entity or reporting nominee being required to give a payment times report for a reporting period that ended before the notice day; and

section 13 would, but for this subsection, require that report to be given to the Regulator by a time before the end of 3 months after the notice day;

then within 3 months after the notice day (subject to any extension of time allowed by the Regulator under section 13A or 13B).section 13 is taken to require the report to be given to the Regulator

7 Entity information

10S Requirement to provide entity information 1

(1) The rules may require an entity (the first entity) that is a reporting entity or a reporting nominee to give the Regulator information about:

the first entity; and

any entities that the first entity controls.

Note: The rules may require a payment times report given by the entity to include a declaration that information given to the Regulator under rules made for the purposes of this section is correct (see paragraph 14(2)(d)).

Without limiting subsection (1), the rules may do any of the following:

require information relating to any of the following:

the identity of an entity;

an entity’s financial, accounting or governance arrangements;

iii

a description or classification of an entity’s business activities;

an entity’s principal governing body and responsible members;

contact details;

an entity’s invoicing and procurement practices;

require information to be given at particular times;

require the first entity to update or correct information that has previously been provided;

require information to be given in the form and manner (if any) approved in an instrument under subsection (3).

The Regulator may, by notifiable instrument, approve a form or manner for the purposes of paragraph (2)(d).

2 Reporting payment times 1 Introduction

11 Simplified outline of this Part

This Part requires reporting entities and reporting nominees to give the Regulator payment times reports for their reporting periods. A report for a reporting period must be given within 3 months after the end of the period, unless the Regulator allows an extension of time.

A payment times report must contain the information and documents prescribed by the rules, and must comply with a number of requirements relating to the preparation and approval of reports.

Civil penalties apply to reporting entities (other than volunteering entities) and reporting nominees that:

fail to report; or

give the Regulator a false or misleading report.

Payment times reports are published on a publicly available register, known as the Payment Times Reports Register. A reporting entity or reporting nominee may register a revised payment times report.

If the Regulator is satisfied that an entity has failed to comply with this Act, the Regulator may publish the identity of the entity, or details of the entity’s non-compliance, on the register.

the Minister to give slow small business payer directions, which may require reporting entities or reporting nominees to publish the fact that they are slow small business payers.Division 4 provides for

Division 5 requires the Regulator to maintain and publish a list of fast small business payers on the register. The Regulator can exclude an entity from the list of fast small business payers for a period in certain circumstances.

Civil penalties apply to entities that make representations about being a fast small business payer when the entity is not included in the list of fast small business payers.

2 Reporting payment times

12 Reporting entities and reporting nominees must report payment times

Reporting entities

A reporting entity must give the Regulator a payment times report for each reporting period for the entity.

However, a reporting entity is not required to give the Regulator a payment times report for a reporting period if the entity is an exempt entity for any part of the reporting period.

Reporting nominees

A reporting nominee must give the Regulator a payment times report for each reporting period for the reporting nominee.

However, a reporting nominee is not required to give the Regulator a payment times report for a reporting period if the reporting nominee is an exempt entity for any part of the reporting period.

13 When report must be given

The report must be given within 3 months after the end of the reporting period.

13A Extension of time to give report—single extension of 28 days or less 1

An entity that is required to give a payment times report may apply, in writing, to the Regulator for a further period of 28 days or less to give the report.

Note: See section 27A (requirements for applications made to the Regulator).

An application under this section may only be made if:

the period in which the report is required to be given has not ended; and

the Regulator has not previously allowed the entity further time to give the report under this section or section 13B.

The application must:

state the further period that the applicant is seeking to give the report, which must end 28 or fewer days after the day the applicant would otherwise be required to give the report; and

state the circumstances that have resulted in the need for further time.

The Regulator may, by written notice to the entity, allow the entity such further time to give the report as is specified in the application, if:

the Regulator has considered the application and any matters prescribed by the rules; and

the Regulator is satisfied that the applicant requires additional time to give the report.

Note: A decision not to allow further time is reviewable: see section 51.

13B Extension of time to give report—other extensions 1

An entity that is required to give a payment times report may apply, in writing, to the Regulator for a further period to give the report.

Note: See section 27A (requirements for applications made to the Regulator).

An application under this section may only be made if:

the period in which the report is required to be given (including that period as previously extended under this section) has not ended; and

the Regulator has not previously allowed the entity further time to give the report under section 13A.

The application must:

state the further period that the applicant is seeking to give the report; and

state the circumstances that have resulted in the need for further time; and

include evidence of those circumstances.

The Regulator may, by written notice to the entity, allow the entity such further time to give the report as is specified in the notice, if:

the Regulator has considered the application and any matters prescribed by the rules; and

the Regulator is satisfied that the circumstances that have resulted in the need for further time are exceptional.

Note: A decision not to allow further time is reviewable: see section 51.

The Regulator must not specify more time in the notice than the Regulator considers appropriate, having regard to:

the severity of the circumstances that have resulted in the need for further time; and

the strength of the evidence of those circumstances included in the application.

14 Reporting requirements

Content requirements

(1) A payment times report that is required to be given to the Regulator by an entity (the first entity) that is a reporting entity or a reporting nominee must include:

the information and documents, relating to the first entity’s payment terms, times or practices in relation to small business suppliers, that are prescribed by the rules; and

the information and documents, relating to the timing of the first entity’s payments of small business invoices, that are prescribed by the rules; and

any other information and documents prescribed by the rules.

Without limiting subsection (1), the rules may do any of the following:

require the report to include information and documents of a kind referred to in subsection (1) in relation to an entity that the first entity controls;

require the report to consolidate information and documents relating to different entities;

prescribe a method for working out any of the matters that must be included in the report;

require the report to include a declaration that information provided by the first entity under rules made for the purposes of section 10S is correct, or was correct at a particular time.

Note: The rules may, in accordance with paragraph (a), require a report given by a reporting nominee to include information and documents relating to another entity specified in the determination under subsection 10L(1).

Without limiting subsection (1), the rules may:

require reports to include different information and documents in different circumstances; and

require a report to include a statement about whether a circumstance mentioned in paragraph (a) of this subsection applies.

Note: See section 16 in relation to false or misleading reports.

(4) Subsection (3) does not limit subsection 33(3A) of the Acts Interpretation Act 1901.

Approval requirement

The report must:

be approved in writing by a responsible member of the first entity; and

include the name of the responsible member of the first entity who approved the report.

Form and manner for giving report

The report must be given in the form and manner (if any) approved in an instrument under subsection (7).

The Regulator may, by notifiable instrument, approve a form or manner for the purposes of subsection (6).

Applying, adopting or incorporating other instruments etc.

(8) Despite subsection 14(2) of the Legislation Act 2003, rules made for the purposes of this section may make provision in relation to a matter by applying, adopting or incorporating, with or without modification, any matter contained in an instrument or other writing as in force or existing from time to time.

15 Civil penalty provision for failure to report 1

A reporting entity is liable to a civil penalty if:

the entity is required to give the Regulator a payment times report in accordance with this Division; and

the entity fails to comply with the requirement; and

the entity is a not a volunteering entity.

Civil penalty: 60 penalty units.

A reporting nominee is liable to a civil penalty if:

the reporting nominee is required to give the Regulator a payment times report in accordance with this Division; and

the reporting nominee fails to comply with the requirement.

Civil penalty: 60 penalty units.

16 Reporting entities and reporting nominees must not give false or misleading reports

Reporting entities that are not volunteering entities

A reporting entity is liable to a civil penalty if:

the entity gives the Regulator a payment times report; and

the report is false or misleading in a material particular; and

the entity is not a volunteering entity.

Civil penalty: 350 penalty units.

Note: This subsection modifies the maximum pecuniary penalty that a body corporate can be ordered to pay for a contravention of subsection (1).

Volunteering entities

A volunteering entity must not give the Regulator a payment times report that is false or misleading in a material particular.

Reporting nominees

A reporting nominee is liable to a civil penalty if:

the reporting nominee gives the Regulator a payment times report; and

the report is false or misleading in a material particular.

Civil penalty: 350 penalty units.

For the purposes of subsection (4), the reference in paragraph 82(5)(a) of the Regulatory Powers Act to 5 times the pecuniary penalty specified for the civil penalty provision has effect as if it were a reference to 0.6% of the total income for the person for the income year in which the contravention occurred.

Note: This subsection modifies the maximum pecuniary penalty that a body corporate can be ordered to pay for a contravention of subsection (4).

3 Access to payment times reports

17 Payment Times Reports Register 1

The Regulator must maintain a register of payment times reports, to be known as the Payment Times Reports Register.

The register must be made available for public inspection, without charge, on the internet.

18 Contents of register 1

The register must contain the payment times reports given to the Regulator under Division 2 (reporting payment times).

The Regulator may arrange for payment times reports given to the Regulator to be published on the register automatically.

Information that is not to be published on the register, or that is to be removed

The rules may prescribe information that, if included in a report, the Regulator must:

take reasonable steps to remove from the report before the report is published on the register; or

remove from a published report as soon as practicable after the Regulator becomes aware that the information is included in the report.

Note: For example, rules made for the purposes of section 14 may require a report to include contact information for individuals. Rules made for the purposes of this subsection may require the Regulator to take reasonable steps to remove that information from the report before the report is published on the register, or remove that information from a report that has been published on the register (if the Regulator is aware of it).

19 Revised payment times reports 1

An entity that is a reporting entity or a reporting nominee may give the Regulator a revised version of a payment times report previously given by the entity.

Note: See section 16 in relation to false or misleading reports.

The revised version of the payment times report must indicate the date of the revision and include a description of the changes made to the most recent version of the report given by the entity.

The Regulator may arrange for revised versions of payment times reports given to the Regulator under this section to be published on the register automatically.

20 Regulator may remove certain information 1

The Regulator may remove information contained in a payment times report from the register if the Regulator considers that continuing to make the information publicly available would be contrary to the public interest.

In making a decision under subsection (1), the Regulator may have regard to:

(a) whether the information is personal information (within the meaning of the Privacy Act 1988); and

whether the information is commercial-in-confidence; and

any other matters prescribed by the rules; and

any other matters the Regulator considers relevant.

(3) Information is commercial-in-confidence if the Regulator is satisfied that:

further release of the information would cause competitive detriment to a constitutionally covered entity; and

removing the information from the register is likely to be effective in removing the information from the public domain; and

the information is not required to be disclosed under another Australian law; and

removing the information from the register is likely to be effective in preventing the information from being readily discoverable.

21 Removal or non-publication of payment times reports for volunteering entities that fail to comply with Act 1

This section applies if the Regulator is reasonably satisfied that a volunteering entity has failed to comply with this Act.

The Regulator may decide that any payment times reports that have been or will be given to the Regulator by the entity:

are not to be made available for public inspection on the register; or

are to be removed from the register;

until the Regulator is satisfied that the entity has taken appropriate remedial action.

22 Publication of information about failure to comply with Act 1

If the Regulator is reasonably satisfied that a constitutionally covered entity has failed to comply with this Act, the Regulator may publish the identity of the entity and details of the non-compliance:

on the register; and

in any other way the Regulator considers appropriate.

Note: A decision to publish the identity of an entity or details of non-compliance is reviewable: see section 51.

Before the Regulator decides to publish the identity of the entity or details of the non-compliance under subsection (1), the Regulator must:

give the entity notice in writing of the proposed decision and the reasons for the proposed decision; and

invite the entity to make written submissions to the Regulator about the proposed decision within the period of 28 days beginning on the day the notice is given; and

have regard to any written submissions made by the entity within that period.

If:

the Regulator has published the identity of an entity and details of non-compliance in accordance with this section; and

the Regulator is considering whether to publish the identity of that entity and details of the non-compliance again (including by publishing that information in some other way);

the Regulator need not comply with subsection (2) in relation to the publication mentioned in paragraph (b) of this subsection.

22A Publication of other information

The rules may prescribe the following:

information that the Regulator may publish on the register;

information that the Regulator must publish on the register;

procedures relating to the publication of information on the register in accordance with rules made for the purposes of paragraphs (a) and (b).

4 Slow small business payers

22B Minister may give slow small business payer direction 1

(1) The Minister may give an entity that is a reporting entity or a reporting nominee a direction under this section (a slow small business payer direction) if:

the Minister is satisfied that the entity was a slow small business payer in 2 consecutive reporting cycles; or

the Minister is satisfied that the entity was a slow small business payer in a reporting cycle, and the entity did not comply with a requirement to give a payment times report in the preceding reporting cycle; or

the Minister is satisfied that the entity was a slow small business payer in a reporting cycle, and the entity did not comply with a requirement to give a payment times report in the following reporting cycle.

Note: A decision to give a slow small business payer direction is reviewable: see sections 51 and 54AA.

Before the Minister decides to give a slow small business payer direction to an entity, the Minister must:

give the entity notice in writing of the proposed decision and the reasons for the proposed decision; and

invite the entity to make written submissions to the Regulator about the proposed decision within the period of 28 days beginning on the day the notice is given.

Matters the Minister must have regard to

(3) In considering whether to give an entity (the first entity) a slow small business payer direction, the Minister must have regard to any written submissions made in accordance with the invitation mentioned in paragraph (2)(b).

In particular, and without limiting subsection (3), the Minister must have regard to the following in relation to the relevant entities mentioned in subsection (5):

the relevant entities’ history (if any) of compliance or non-compliance with this Act;

any of the following matters raised in a written submission made in accordance with the invitation mentioned in paragraph (2)(b):

the relevant entities’ practices in relation to paying small business invoices;

any improvements in those practices;

iii

whether any slowness of the relevant entities’ payment of small business invoices has been because of circumstances beyond the relevant entities’ control;

the likely cost and burden of complying with the direction, and whether that cost and burden is reasonable in the circumstances.

(5) For the purposes of subsection (4), the relevant entities are:

the first entity; and

any other constitutionally covered entity that rules made for the purposes of section 14 require the first entity’s payment times reports to include information about.

22C Other provisions about giving slow small business payer directions 1

A slow small business payer direction:

must be in writing; and

may include one or more requirements under section 22E; and

may specify, for the purposes of paragraph 22F(1)(b), the day that the direction ceases to be in effect.

The Minister may only give a slow small business payer direction before the end of 12 months after:

if paragraph 22B(1)(a) applies—the end of the later of the 2 consecutive reporting cycles mentioned in that paragraph; or

if paragraph 22B(1)(b) applies—the end of the reporting cycle in which the entity was a slow small business payer; or

if paragraph 22B(1)(c) applies—the end of the reporting cycle in which the entity failed to comply with a requirement to give a payment times report.

The Minister must not give a slow small business payer direction to a volunteering entity.

A slow small business payer direction is not a legislative instrument.

22D Slow small business payers 1

(1) An entity that is a reporting entity or a reporting nominee is a slow small business payer for a reporting cycle if the entity was within:

the slowest 20% of small business payers for that reporting cycle; or

the slowest 20% of small business payers in a Division of the Australian and New Zealand Standard Industrial Classification for that reporting cycle.

(2) For the purposes of subsection (1), slowest 20% of small business payers and slowest 20% of small business payers in a Division of the Australian and New Zealand Standard Industrial Classification, for a reporting cycle, have the meanings prescribed by the rules.

Without limiting subsection (2), rules made for the purposes of that subsection may provide that whether an entity is within a class of entities mentioned in paragraph (1)(a) or (b) is to be worked out with regard to the payment terms, times and practices of:

the entity; and

if the rules require the entity’s payment times reports to include information or documents about other entities that the entity controls—those other entities.

(4) Despite subsection (1), an entity is not a slow small business payer for a reporting cycle if:

the entity has given the Regulator a payment times report for a reporting period that ended within that reporting cycle; and

the payment times report has a qualifying payment time of 30 days or less.

(5) For the purposes of paragraph (4)(b), qualifying payment time of 30 days or less has the meaning given by the rules.

22E Requirements that may be included in slow small business payer direction 1

(1) A slow small business payer direction given to an entity (the recipient) may require the recipient:

to publish specified statements or information in accordance with this section; or

(b) to take reasonable steps to cause a constitutionally covered entity that the recipient controls (a controlled entity) to publish specified statements or information in accordance with this section.

The direction may require the recipient to publish, or take reasonable steps to cause to be published, any of the following:

a statement that the recipient or the controlled entity is a slow small business payer;

information on how to access payment times reports that relate to the recipient or the controlled entity.

The direction may require the recipient to publish the statement or information, or take reasonable steps to cause the statement or information to be published:

on the recipient’s website or the controlled entity’s website; or

in documents relating to procurement processes, including requests for quotes and tender documents; or

in documents relating to the environmental, social and governance policies or performance of the entity or the controlled entity; or

in invoices; or

in other kinds of commercial documents; or

in any other way that the Minister considers appropriate.

The direction may require the statement or information to be published in a specified manner, including by imposing any of the following requirements:

a requirement relating to the prominence of the statement or information;

a requirement relating to the location of the statement or information in relation to other material.

22F Duration of slow small business payer direction 1

A slow small business payer direction given to an entity continues in effect until the earliest of the following:

the day the entity gives the Regulator a payment times report with a qualifying payment time of 30 days or less;

if the direction specifies a day that it ceases to be in effect—that day;

the day 1 year after the day the direction is given;

if the Minister revokes the direction under subsection (2)—the time the Minister gives the entity the notice of revocation.

The Minister may, by written notice given to the entity to which a slow small business payer direction was given, revoke the direction.

(3) For the purposes of paragraph (1)(a), qualifying payment time of 30 days or less has the meaning given by the rules.

22G Civil penalty provision for failure to comply with slow small business payer direction 1

An entity that is a reporting entity or a reporting nominee is liable to a civil penalty if:

the Minister gives the entity a slow small business payer direction; and

the entity fails to comply with the direction.

Civil penalty: 200 penalty units.

Note: This subsection modifies the maximum pecuniary penalty that a body corporate can be ordered to pay for a contravention of subsection (1).

Subsection (1) does not apply if compliance with the direction (including compliance by a constitutionally covered entity controlled by the reporting entity publishing statements or information, as mentioned in paragraph 22E(1)(b)) would contravene any Australian law.

Note: A defendant bears an evidential burden in relation to the matter in this subsection (see section 96 of the Regulatory Powers Act).

22H Publication on Register 1

If the Minister gives a slow small business payer direction to an entity, the following must be published on the register:

a statement that the entity has been given a slow small business payer direction;

a description of the slow small business payer direction.

To avoid doubt, information published on the register under subsection (1) may remain on the register after the slow small business payer direction has ceased to be in effect.

5 Fast small business payers

22J Fast small business payers 1

(1) An entity is a fast small business payer, at a particular time, if:

at that particular time, the entity is a reporting entity or reporting nominee; and

at that particular time, the entity has given the Regulator payment times reports for 2 consecutive reporting periods and both of the payment times reports for the 2 consecutive reporting periods have a qualifying payment time of 20 days or less; and

at that particular time, the period of 9 months, starting on the day after the end of the later of the 2 consecutive reporting periods, has not ended; and

in the case that, at that particular time, the entity has given the Regulator a payment times report for the next reporting period starting immediately after the end of the later of the 2 consecutive reporting periods—that payment times report also has a qualifying payment time of 20 days or less.

(2) For the purposes of this Division, qualifying payment time of 20 days or less has the meaning given by the rules.

22K List of fast small business payers

List of fast small business payers

The Regulator must maintain and publish on the register a list of entities that are fast small business payers, to be known as the list of fast small business payers.

The Regulator must update the list as soon as practicable after an entity becomes, or ceases to be, a fast small business payer.

Regulator can exclude entities

Despite subsections (1) and (2), the Regulator may decide to exclude an entity from the list for a period if the Regulator reasonably believes (or is considering whether):

the entity has engaged in procurement practices that limit, reduce or restrict small business participation; or

the entity has engaged in payment practices that are contrary to the objects of this Act; or

the entity has given the Regulator a payment times report for a reporting period that has a misleading qualifying payment time of 20 days or less.

If the Regulator makes a decision under subsection (3) to exclude an entity from the list, the Regulator must give the entity written notice of the decision.

The notice must:

set out the reasons for the Regulator’s decision; and

specify the period in which the entity is excluded from the list.

22L False representations in relation to fast small business payers

An entity that is a reporting entity or a reporting nominee is liable to a civil penalty if:

the entity does an act or omits to do an act; and

the act or omission results in, or is reasonably capable of resulting in, a representation that the entity:

is a fast small business payer; or

has a qualifying payment time of 20 days or less; and

at the time the act or omission results in, or is reasonably capable of resulting in, the representation, the entity is not included in the list of fast small business payers.

Civil penalty: 200 penalty units.

3 Payment Times Reporting Regulator 1 Introduction

23 Simplified outline of this Part

This Part requires the Secretary to designate a position of Payment Times Reporting Regulator in the Department. The Regulator is to be an SES employee.

The Regulator has functions relating to the administration of this Act, including monitoring and enforcing compliance with this Act. The Regulator also has functions relating to undertaking research and publishing reports and analysis on the payment terms, times and practices of reporting entities.

The Regulator may delegate certain functions or powers.

2 Payment Times Reporting Regulator

24 Payment Times Reporting Regulator 1

The Secretary must, by writing, designate a position in the Department as the position of Payment Times Reporting Regulator.

That position can only be occupied by an SES employee.

(3) The Regulator is the SES employee who occupies, or the acting SES employee who is acting in, that position.

An instrument made under subsection (1) is not a legislative instrument.

25 Functions of the Regulator

The Regulator has the following functions:

to administer this Act;

the functions conferred on the Regulator by this Act;

to undertake research on the payment terms, times and practices of reporting entities and reporting nominees, for the purpose of informing the Commonwealth;

to publish reports on, or other results of, that research;

to publish analysis of the payment terms, times and practices of reporting entities and reporting nominees, for purposes incidental to the purpose of informing the Commonwealth;

to provide users of the register with data and tools to assist them to understand and use information made available on the register;

to monitor and enforce compliance with this Act;

any other function prescribed by the rules;

any other function conferred on the Regulator by any other law of the Commonwealth;

to advise the Minister about matters relating to any of the functions mentioned in paragraphs (a) to (e);

to do anything incidental or conducive to the performance of any of the preceding functions.

26 Powers of the Regulator

The Regulator has power to do all things necessary or convenient to be done for, or in connection with, the performance of the Regulator’s functions.

27 Delegation by the Regulator 1

Subject to subsections (2) and (3), the Regulator may, in writing, delegate all or any of the Regulator’s functions or powers under this Act to:

an SES employee, or acting SES employee, in the Department; or

a person who holds, or is acting in, an Executive Level 2, or equivalent, position in the Department.

Note: Sections 34AA to 34A of the Acts Interpretation Act 1901 contain provisions relating to delegations.

Without limiting subsection (1), the Regulator may, in writing, delegate the Regulator’s functions or powers under section 13A or 13B to a person who holds, or is acting in, an Executive Level 1, or equivalent, position in the Department.

Note: Sections 34AA to 34A of the Acts Interpretation Act 1901 contain provisions relating to delegations.

The Regulator must not delegate the Regulator’s functions or powers under section 35 (appointment of authorised officers) or section 36 (appointment of infringement officers).

The Regulator must not delegate a power to make a legislative instrument or a notifiable instrument.

In performing a delegated function or exercising a delegated power, the delegate must comply with any written directions of the Regulator.

3 Applications made to the Regulator

27A Requirements for applications made to the Regulator 1

This section applies to an application to the Regulator under any of the following provisions:

subsection 10C(1) (application for Regulator to make a volunteering entity determination);

subsection 10F(1) (application for Regulator to make a subsidiary reporting entity determination);

subsection 10M(1) (application for Regulator to make a reporting nominee determination);

subsection 10Q(1) (application for Regulator to make an exempt entity determination);

subsection 13A(1) (extensions of time of 28 days or less);

subsection 13B(1) (other extensions of time).

The application must:

be given in the form and manner (if any) approved by the Regulator under subsection (3); and

include the information determined by the Regulator under subsection (4); and

state the name of the applicant; and

be approved in writing by a responsible member of the applicant; and

state the name of the responsible member of the applicant who approved the application.

Note: There may also be fees charged for making certain applications (see section 27B).

For the purposes of paragraph (2)(a), the Regulator may, by notifiable instrument, approve a form or manner for a kind of application mentioned in subsection (1).

For the purposes of paragraph (2)(b), the Regulator may, by legislative instrument, determine information that must be included in a kind of application mentioned in subsection (1).

Regulator may require further information

The Regulator may, by written notice given to the applicant, require the applicant to give the Regulator further information in connection with the application.

If the applicant does not comply with a notice under subsection (5), the Regulator may, by written notice given to the applicant:

refuse to consider the application; or

refuse to take any action, or any further action, in relation to the application.

27B Fees for applications made to the Regulator 1

The Regulator may, by legislative instrument, determine a fee for making any of the following applications under this Act:

an application under subsection 10F(1) for the Regulator to determine that an entity is a subsidiary reporting entity;

an application under subsection 10M(1) for the Regulator to determine that an entity is a reporting nominee;

an application under subsection 10Q(1) for the Regulator to determine that an entity is an exempt entity;

an application under subsection 13A(1) for further time to give a payment times report;

an application under subsection 13B(1) for further time to give a payment times report (except in a case where the applicant has already made an application under subsection 13B(1), and paid any fee for that application, in relation to the same report).

A fee must not be such as to amount to taxation.

If the Regulator determines, under subsection (1), a fee for making an application, the application is taken not to have been made unless the fee is paid.

4 Compliance and enforcement 1 Introduction

28 Simplified outline of this Part

This Part imposes certain obligations on reporting entities and reporting nominees, and provides for compliance and enforcement powers.

Reporting entities and reporting nominees are required to keep records of information used to prepare payment times reports for 7 years.

The Regulator may require a reporting entity or reporting nominee to arrange an audit of the entity’s compliance with this Act.

The Regulator may require a person to give the Regulator information, a document or a thing that is relevant to the operation of this Act.

This Part applies Parts 2, 3, 4, 5 and 6 of the Regulatory Powers Act with suitable modifications. Those Parts of that Act deal with monitoring and investigation powers, civil penalty provisions, infringement notices and enforceable undertakings. The Regulator may appoint authorised officers and infringement officers to exercise powers under the Regulatory Powers Act.

2 Obligations of reporting entities and reporting nominees

29 Record-keeping requirements—reporting entities

Reporting entity must keep records

A reporting entity must keep records of any information used in the preparation of a payment times report for a reporting period for the entity for at least 7 years after the end of the reporting period.

Civil penalty

A reporting entity is liable to a civil penalty if:

the entity is required to keep records under subsection (1); and

the entity fails to comply with the requirement; and

the entity is not a volunteering entity.

Civil penalty: 200 penalty units.

For the purposes of subsection (2), the reference in paragraph 82(5)(a) of the Regulatory Powers Act to 5 times the pecuniary penalty specified for the civil penalty provision has effect as if it were a reference to 0.2% of the total income for the person for the income year in which the contravention occurred.

Note: This subsection modifies the maximum pecuniary penalty that a body corporate can be ordered to pay for a contravention of subsection (2).

29A Record-keeping requirements—reporting nominees

Reporting nominee must keep records

A reporting nominee must keep records of any information used in the preparation of a payment times report for a reporting period for at least 7 years after the end of the reporting period.

Civil penalty

A reporting nominee is liable to a civil penalty if:

the reporting nominee is required to keep records under subsection (1); and

the reporting nominee fails to comply with the requirement.

Civil penalty: 200 penalty units.

Note: This subsection modifies the maximum pecuniary penalty that a body corporate can be ordered to pay for a contravention of subsection (2).

30 Compliance audits 1

This section applies if the Regulator reasonably suspects that an entity that is a reporting entity or a reporting nominee has contravened a provision of this Act.

The Regulator may, by written notice given to the entity, require the entity:

to appoint as an auditor:

a person nominated by the entity and approved, in writing, by the Regulator; or

if the Regulator does not approve a person nominated by the entity—another person approved, in writing, by the Regulator; and

to arrange for the auditor to carry out an audit of whichever of the following is specified in the notice:

the entity’s compliance with this Act;

one or more specified aspects of the entity’s compliance with this Act; and

to give the Regulator a written report setting out the results of the audit within:

the period specified in the notice; or

if the Regulator allows a longer period—that longer period.

The notice must specify:

requirements relating to the qualifications and independence of the auditor to be appointed under paragraph (2)(a); and

the matters to be covered by the audit; and

the form and content of the report.

The entity must comply with the notice.

The entity must provide the auditor, and any persons assisting the auditor, with all reasonable facilities and assistance necessary for the effective exercise of the auditor’s duties under this section.

Auditor’s fees and expenses

The reasonable fees and expenses of the auditor for preparing the audit report are payable by the entity.

Civil penalties

An entity is liable to a civil penalty if:

the entity is subject to a requirement under subsection (4); and

the entity fails to comply with the requirement; and

the entity is not a volunteering entity.

Civil penalty: 60 penalty units.

An entity is liable to a civil penalty if:

the entity is subject to a requirement under subsection (5); and

the entity fails to comply with the requirement; and

the entity is not a volunteering entity.

Civil penalty: 200 penalty units.

For the purposes of subsection (8), the reference in paragraph 82(5)(a) of the Regulatory Powers Act to 5 times the pecuniary penalty specified for the civil penalty provision has effect as if it were a reference to 0.2% of the total income for the person for the income year in which the contravention occurred.

Note: This subsection modifies the maximum pecuniary penalty that a body corporate can be ordered to pay for a contravention of subsection (8).

2A Information-gathering powers

30A Regulator may obtain information 1

This section applies to a person if the Regulator believes on reasonable grounds that the person has information or a document or thing that is relevant to the operation of this Act.

The Regulator may, by written notice given to the person, require the person:

to give to the Regulator any such information; or

to produce to the Regulator any such document or thing.

The notice must specify:

the name of the person; and

the form and manner in which the person is required to comply with the notice; and

the period (which must be at least 14 days after the notice is given to the person) within which the person is required to comply with the notice.

The Regulator may, by written notice given to the person, extend the period mentioned in paragraph (3)(c). The Regulator may extend the period even if it has expired.

The Regulator may, by written notice given to the person, withdraw a notice given under subsection (2).

30B Civil penalty provision for failure to comply with notice

A person is liable to a civil penalty if:

the person is given a notice under subsection 30A(2); and

the person fails to comply with the notice.

Civil penalty: 60 penalty units.

3 Regulatory powers

31 Monitoring powers

Provisions subject to monitoring

A provision is subject to monitoring under Part 2 of the Regulatory Powers Act if it is:

a provision of this Act; or

(b) an offence against the Crimes Act 1914 or the Criminal Code that relates to this Act.

Note: Part 2 of the Regulatory Powers Act creates a framework for monitoring whether this Act has been complied with. It includes powers of entry and inspection.

Information subject to monitoring

(2) Information given in compliance or purported compliance with a provision of this Act is subject to monitoring under Part 2 of the Regulatory Powers Act.

Note: Part 2 of the Regulatory Powers Act creates a framework for monitoring whether the information is correct. It includes powers of entry and inspection.

Related provisions, authorised applicant, authorised person, issuing officer, relevant chief executive and relevant court

For the purposes of Part 2 of the Regulatory Powers Act, as that Part applies in relation to the provisions mentioned in subsection (1) and the information mentioned in subsection (2):

there are no related provisions; and

the Regulator and each authorised officer is an authorised applicant; and

the Regulator and each authorised officer is an authorised person; and

an issuing officer (as defined in section 5 of this Act) is an issuing officer; and

the Regulator is the relevant chief executive; and

each relevant court (as defined in section 5 of this Act) is a relevant court.

Person assisting

An authorised person may be assisted by other persons in exercising powers or performing functions or duties under Part 2 of the Regulatory Powers Act in relation to the provisions mentioned in subsection (1) or information mentioned in subsection (2).

Extension to external Territories etc.

Part 2 of the Regulatory Powers Act, as it applies in relation to the provisions mentioned in subsection (1) and the information mentioned in subsection (2), extends to every external Territory.

32 Investigation powers

Provisions subject to investigation

A provision is subject to investigation under Part 3 of the Regulatory Powers Act if it is:

a civil penalty provision of this Act; or

(b) an offence against the Crimes Act 1914 or the Criminal Code that relates to this Act.

Note: Part 3 of the Regulatory Powers Act creates a framework for investigating whether a provision has been contravened. It includes powers of entry, search and seizure.

Related provisions, authorised applicant, authorised person, issuing officer, relevant chief executive and relevant court

For the purposes of Part 3 of the Regulatory Powers Act, as it applies in relation to evidential material that relates to a provision mentioned in subsection (1):

there are no related provisions; and

(b) the Regulator and each authorised officer is an authorised applicant; and

the Regulator and each authorised officer is an authorised person; and

an issuing officer (as defined in section 5 of this Act) is an issuing officer; and

the Regulator is the relevant chief executive; and

each relevant court (as defined in section 5 of this Act) is a relevant court.

Person assisting

An authorised person may be assisted by other persons in exercising powers or performing functions or duties under Part 3 of the Regulatory Powers Act in relation to evidential material that relates to a provision mentioned in subsection (1).

Extension to external Territories etc.

(4) Part 3 of the Regulatory Powers Act, as it applies in relation to a provision mentioned in subsection (1), extends to every external Territory.

33 Civil penalty provisions

Enforceable civil penalty provisions

Each civil penalty provision of this Act is enforceable under Part 4 of the Regulatory Powers Act.

Note: Part 4 of the Regulatory Powers Act allows a civil penalty provision to be enforced by obtaining an order for a person to pay a pecuniary penalty for the contravention of the provision.

Authorised applicant

For the purposes of Part 4 of the Regulatory Powers Act, the Regulator is an authorised applicant in relation to the civil penalty provisions of this Act.

Relevant court

For the purposes of Part 4 of the Regulatory Powers Act, each relevant court (as defined in section 5 of this Act) is a relevant court in relation to the civil penalty provisions of this Act.

Liability of Crown

Part 4 of the Regulatory Powers Act, as that Part applies in relation to the civil penalty provisions of this Act, does not make the Crown in right of the Commonwealth liable to a pecuniary penalty.

Mistake of fact—bodies corporate

A body corporate can only rely on section 95 of the Regulatory Powers Act (mistake of fact) in respect of conduct that would, apart from this section, constitute a contravention on its part of a civil penalty provision of this Act if:

the employee, agent or officer of the body corporate who carried out the conduct was under a mistaken but reasonable belief about facts that, had they existed, would have meant that the conduct would not have contravened the civil penalty provision; and

the body corporate proves that it exercised due diligence to prevent the conduct.

A failure to exercise due diligence may be evidenced by the fact that the prohibited conduct was substantially attributable to:

inadequate corporate management, control or supervision of the conduct of one or more of its employees, agents or officers; or

failure to provide adequate systems for conveying relevant information to relevant persons in the body corporate.

Extension to external Territories etc.

(7) Part 4 of the Regulatory Powers Act, as it applies in relation to the civil penalty provisions of this Act, extends to every external Territory.

34 Infringement notices

Provisions subject to an infringement notice

A civil penalty provision of this Act is subject to an infringement notice under Part 5 of the Regulatory Powers Act.

Note: Part 5 of the Regulatory Powers Act creates a framework for using infringement notices in relation to provisions.

Infringement officer

For the purposes of Part 5 of the Regulatory Powers Act, each of the following persons is an infringement officer in relation to the provisions mentioned in subsection (1):

the Regulator;

a person appointed as an infringement officer under subsection 36(1).

Relevant chief executive

For the purposes of Part 5 of the Regulatory Powers Act, the Regulator is the relevant chief executive in relation to the provisions mentioned in subsection (1).

Liability of Crown

Part 5 of the Regulatory Powers Act, as that Part applies in relation to the provisions mentioned in subsection (1), does not make the Crown in right of the Commonwealth liable to be given an infringement notice.

Extension to external Territories etc.

(5) Part 5 of the Regulatory Powers Act, as it applies in relation to the provisions mentioned in subsection (1), extends to every external Territory.

34A Enforceable undertakings

Enforceable provisions

(1) Each civil penalty provision of this Act is enforceable under Part 6 of the Regulatory Powers Act.

Note: Part 6 of the Regulatory Powers Act creates a framework for accepting and enforcing undertakings relating to compliance with provisions.

Authorised person

For the purposes of Part 6 of the Regulatory Powers Act, the Regulator and each authorised officer is an authorised person in relation to the civil penalty provisions of this Act.

Relevant court

For the purposes of Part 6 of the Regulatory Powers Act, each relevant court (as defined in section 5 of this Act) is a relevant court in relation to the civil penalty provisions of this Act.

Extension to external Territories etc.

Part 6 of the Regulatory Powers Act, as it applies in relation to the civil penalty provisions of this Act, extends to every external Territory.

35 Appointment of authorised officers 1

The Regulator may, in writing, appoint an APS employee who holds or performs the duties of an Executive Level 1 position, or an equivalent or higher position, as an authorised officer for the purposes of this Act.

The Regulator must not appoint a person as an authorised officer unless the Regulator is satisfied that the person has the knowledge or experience necessary to properly exercise the powers of an authorised officer.

An authorised officer must, in exercising powers as such, comply with any directions of the Regulator.

If a direction is given under subsection (3) in writing, the direction is not a legislative instrument.

36 Appointment of infringement officers 1

The Regulator may, in writing, appoint an APS employee who holds or performs the duties of an Executive Level 2 position, or an equivalent or higher position, as an infringement officer for the purposes of this Act.

The Regulator must not appoint a person as an infringement officer unless the Regulator is satisfied that the person has the knowledge or experience necessary to properly exercise the powers of an infringement officer.

An infringement officer must, in exercising powers as such, comply with any directions of the Regulator.

If a direction is given under subsection (3) in writing, the direction is not a legislative instrument.

5 Protected information 1 Introduction

38 Simplified outline of this Part

Information (called protected information) may be obtained under, or in accordance with, this Act.

This Part sets out the circumstances in which that information may be used or disclosed.

An entrusted person may commit an offence if the person uses or discloses the information other than in certain circumstances.

Note 1: Privacy Act 1988 and other laws (including the common law).Division 2 provides authorisations for the purposes of the

Note 2: Use, in relation to information, includes making a record of the information (see the definition of use in section 5).

2 Authorised use or disclosure

39 Performing functions or exercising powers under this Act

An entrusted person may use or disclose protected information in performing functions or duties or exercising powers under this Act.

40 Policy development

An entrusted person may use protected information, or disclose protected information to another entrusted person, for the purposes of policy development.

40A Compliance auditors

The Regulator may disclose protected information to an auditor appointed to carry out an audit in accordance with section 30, if the Regulator is satisfied that the information will assist in carrying out the audit.

41 Proceedings etc.

An entrusted person may disclose protected information:

to a court or tribunal, or in accordance with an order of a court or tribunal, for the purposes of proceedings; or

to a coronial inquiry, or in accordance with an order of a coroner, for the purposes of a coronial inquiry.

42 Enforcement related activity 1

An entrusted person may use protected information, or disclose protected information to an enforcement body, if the person reasonably believes that the use or disclosure is reasonably necessary for, or directly related to, one or more enforcement related activities being conducted by, or on behalf of, the enforcement body.

An enforcement body to which protected information is disclosed under subsection (1) may use or disclose the information for the purposes of conducting one or more enforcement related activities.

43 Information required by another Australian law

An entrusted person may use or disclose protected information if the use or disclosure is required under an Australian law other than this Act.

44 Person to whom information relates—disclosure and consent 1

An entrusted person may disclose protected information to the person to whom the information relates.

An entrusted person may use or disclose protected information for a purpose if the person to whom the information relates has expressly consented to the entrusted person using or disclosing the information for that purpose.

45 Person who provided information

An entrusted person may disclose protected information to the person who provided the information.

3 Unauthorised use or disclosure

46 Unauthorised use or disclosure

Fault-based offence

A person commits an offence if:

the person is or was an entrusted person; and

the person obtains protected information in the person’s capacity as an entrusted person; and

the person uses or discloses the information; and

the use or disclosure is not authorised by a provision of this Part.

Penalty: Imprisonment for 2 years or 120 penalty units, or both.

Exception for use or disclosure in good faith

Subsection (1) does not apply to a person to the extent that the person uses or discloses protected information in good faith and in purported compliance with a provision in this Part.

Note: A defendant bears an evidential burden in relation to the matter in this subsection (see subsection 13.3(3) of the Criminal Code).

6 Miscellaneous 1 Introduction

47 Simplified outline of this Part

This Part deals with miscellaneous matters, such as the review of decisions, the continuation of certain obligations for former reporting entities and former reporting nominees, delegations by the Minister, annual reporting, a statutory review and the power to make rules.

This Part also provides for obligations and conduct of entities that do not have legal personality to be attributed to legal persons.

Note: See section 97 of the Regulatory Powers Act in relation to civil penalty provisions contravened by employees, agents or officers of bodies corporate.

2 Treatment of certain kinds of entities

48 Treatment of partnerships 1

This Act applies to an entity that is a reporting entity or a reporting nominee that is a partnership with the changes set out in this section.

An obligation that would otherwise be imposed on the partnership by this Act is imposed on each partner instead, but may be discharged by any of the partners.

A civil penalty provision of this Act that would otherwise have been contravened by the partnership is taken to have been contravened by each partner in the partnership, at the time the provision was contravened, who:

did the relevant act or made the relevant omission; or

aided, abetted, counselled or procured the relevant act or omission; or

was in any way knowingly concerned in, or party to, the relevant act or omission (whether directly or indirectly and whether by any act or omission of the partner).

For the purposes of this Act, a change in the composition of a partnership does not affect the continuity of the partnership.

49 Treatment of unincorporated associations or bodies of persons 1

This Act applies to an entity that is a reporting entity or a reporting nominee that is an unincorporated association or body of persons with the changes set out in this section.

An obligation that would otherwise be imposed on the association or body of persons by this Act is imposed on each member of the committee of management of the association or body instead, but may be discharged by any of those members.

A civil penalty provision of this Act that would otherwise have been contravened by the unincorporated association or body of persons is taken to have been contravened by each member of the committee of management of the association or body, at the time the provision was contravened, who:

did the relevant act or made the relevant omission; or

aided, abetted, counselled or procured the relevant act or omission; or

was in any way knowingly concerned in, or party to, the relevant act or omission (whether directly or indirectly and whether by any act or omission of the member).

50 Treatment of trusts and superannuation funds and approved deposit funds that are trusts 1

(1) This Act applies with the changes set out in this section to each of the following entities (the relevant entity) that is a reporting entity or a reporting nominee:

a trust;

(b) a superannuation fund or approved deposit fund (within the meaning of the Superannuation Industry (Supervision) Act 1993) that is a trust.

Relevant entities with a single trustee

If the relevant entity has a single trustee:

an obligation that would otherwise be imposed on the relevant entity by this Act is imposed on the trustee instead; and

a civil penalty provision of this Act that would otherwise have been contravened by the relevant entity is taken to have been contravened by the trustee.

Relevant entities with multiple trustees

If the relevant entity has 2 or more trustees:

an obligation that would otherwise be imposed on the relevant entity by this Act is imposed on each trustee instead, but may be discharged by any of the trustees; and

a civil penalty provision of this Act that would otherwise have been contravened by the relevant entity is taken to have been contravened by each trustee of the relevant entity, at the time the provision was contravened, who:

did the relevant act or made the relevant omission; or

aided, abetted, counselled or procured the relevant act or omission; or

iii

was in any way knowingly concerned in, or party to, the relevant act or omission (whether directly or indirectly and whether by any act or omission of the trustee).

3 Reviewable decisions

51 Reconsideration and review of decisions 1

(1) A decision mentioned in an item in column 1 of the following table that is made by the Regulator under the provision mentioned in column 2 of that item is a reviewable decision.

Reviewable decisions	Reviewable decisions	Reviewable decisions
Item	Column 1 Decision	Column 2 Provision
1	A decision not to determine that an entity is a reporting entity	Subsection 10B(1)
2	A decision to revoke a determination under subsection 10B(1) that an entity is a reporting entity	Subsection 10D(3)
3	A decision not to determine that an entity is a subsidiary reporting entity	Subsection 10E(1)
4	A decision to revoke a determination under subsection 10E(1) that an entity is a subsidiary reporting entity	Subsection 10G(1)
5	A decision to determine that a reporting entity is to cease to be a reporting entity	Subsection 10K(1)
6	A decision not to determine that an entity is a reporting nominee	Subsection 10L(1)
7	A decision to revoke a determination that an entity is a reporting nominee	Subsection 10N(1)
8	A decision not to determine that an entity is an exempt entity	Subsection 10P(1)
9	A decision to revoke a determination under subsection 10P(1) that an entity is an exempt entity	Subsection 10R(1)
10	A decision not to allow further time to give a payment times report	Subsections 13A(4) and 13B(4)
11	A decision to publish the identity of an entity or details of non-compliance	Subsection 22(1)
12	A decision to give a slow small business payer direction, if the decision was made by the Regulator in accordance with a delegation under section 55B	Subsection 22B(1)
13	A decision to exclude an entity from the list of fast small business payers	Subsection 22K(3)

(2) The rules may provide that a decision made under a prescribed provision of the rules is a reviewable decision.

52 Application for reconsideration of reviewable decision 1

If another provision of this Act requires written notice to be given of a reviewable decision, the notice must include:

the reasons for the decision; and

information regarding a person’s rights to seek reconsideration or review of the decision under this section.

A person whose interests are affected by a reviewable decision may apply, in writing, to the Regulator for the Regulator to reconsider the decision.

The application must:

set out the reasons for the application; and

be given to the Regulator within 14 days after the applicant is notified of the decision.

53 Reconsideration of reviewable decision 1

After receiving the application, the Regulator must:

personally reconsider the decision to which the application relates; or

cause the decision to be reconsidered by a delegate of the Regulator who:

was not involved in making the decision; and

occupies a position that is at least the same level as that occupied by the person who made the decision.

The person who reconsiders the decision is the internal decision reviewer.

After reconsidering the reviewable decision, the internal decision reviewer must:

affirm the decision; or

vary the decision; or

set the decision aside and substitute a new decision.

After the internal decision reviewer makes the reconsideration decision, the reviewer must give written notice of the following to the applicant:

the reconsideration decision;

the date that decision takes effect;

the reason for that decision.

Note: Section 266 of the Administrative Review Tribunal Act 2024 requires the applicant to be notified of the applicant’s review rights.

The internal decision reviewer is taken to have affirmed the reviewable decision if the reviewer does not give notice of the reconsideration decision to the applicant within 90 days after receiving the application.

The reconsideration decision is taken to have been made under the provision under which the reviewable decision was made other than for the purposes of section 52.

The Regulator must, as soon as is practicable, give the Secretary a copy of a notice given under subsection (3).

54 Review by the Administrative Review Tribunal—reconsideration decisions

Applications may be made to the Administrative Review Tribunal for review of a reconsideration decision of an internal decision reviewer.

54AA Review by the Administrative Review Tribunal—decisions made by the Minister

Applications may be made to the Administrative Review Tribunal for review of decisions of the Minister to give slow small business payer directions (not including such decisions made by the Regulator in accordance with a delegation under section 55B).

Note: For review of a decision to give a slow small business payer direction made by the Regulator in accordance with a delegation, see section 51.

4 Other matters

55 Former reporting entities

Obligation to report

The requirement for a reporting entity to give the Regulator a payment times report for a reporting period for the entity under section 12 continues to apply to the entity if:

the entity has not given the Regulator a payment times report for the reporting period under that section; and

the entity ceases to be a reporting entity at any time after the end of the reporting period.

Subsection (1) does not apply if the entity was a volunteering entity during the reporting period.

Other rights and obligations

The following provisions continue to apply to an entity that has ceased to be a reporting entity, as if it were still a reporting entity:

section 15 (civil penalty provision for failure to report);

section 16 (false or misleading reports);

Division 3 of Part 2 (access to payment times reports);

Division 2 of Part 4 (obligations of reporting entities and reporting nominees);

Division 2 of this Part (treatment of certain kinds of entities).

55A Former reporting nominees

Former reporting nominees

The requirement for a reporting nominee to give the Regulator a payment times report under section 12 for a reporting period continues to apply to the reporting nominee if:

the reporting nominee has not given the Regulator a payment times report for the reporting period under that section; and

the reporting nominee ceases to be a reporting nominee at any time after the end of the reporting period.

Other rights and obligations

The following provisions continue to apply to a reporting nominee that has ceased to be a reporting nominee as if it were still a reporting nominee:

section 15 (civil penalty provision for failure to report);

section 16 (false or misleading reports);

Division 3 of Part 2 (access to payment times reports);

Division 2 of Part 4 (obligations of reporting entities and reporting nominees);

Division 2 of this Part (treatment of certain kinds of entities).

55B Delegation by the Minister 1

The Minister may, in writing, delegate all or any of the Minister’s functions or powers under Division 4 of Part 2 of this Act to the Regulator.

Note: Sections 34AA to 34A of the Acts Interpretation Act 1901 contain provisions relating to delegations.

In performing a delegated function or exercising a delegated power, the delegate must comply with any written directions of the Minister.

56 Annual report

The annual report prepared by the Secretary and given to the Minister under Public Governance, Performance and Accountability Act 2013 for a period must include a report from the Regulator on the operation of this Act during the period.section 46 of the

57 Protection against civil liability 1

This section applies to:

the Commonwealth; and

the Minister; and

the Regulator; and

a delegate of the Regulator (see section 27); and

an APS employee in the Department who has been made available to assist the Regulator.

No action for defamation, breach of confidence or infringement of copyright lies against a person mentioned in subsection (1) for or in relation to an act done or omitted to be done in good faith:

in the performance or purported performance of any functions under this Act; or

in the exercise or purported exercise of any powers under this Act.

57A Review of operation of this Act 1

(1) The Minister must cause an independent review of the operation of this Act to be conducted within 2 years after the third anniversary of the commencement of the Payment Times Reporting Amendment Act 2024.

Note: The reference to this Act includes the rules: see the definition of this Act in section 5.

The persons who conduct the review must give the Minister a written report of the review.

The Minister must cause a copy of the report to be tabled in each House of the Parliament within 15 sitting days of that House after the report is given to the Minister.

57B Requirements for review

Without limiting section 57A, the review must consider the following:

whether the operation of this Act is meeting the objects set out in section 3;

whether related government policies, including policies relating to electronic invoicing, have improved the payment terms, times and practices of reporting entities in relation to their small business suppliers;

(c) whether other measures such as mandating one or more maximum periods (the mandated maximum payment periods) for the payment of small business invoices by reporting entities would be more effective in improving those payment terms, times and practices.

58 Rules 1

The Minister may, by legislative instrument, make rules prescribing matters:

required or permitted by this Act to be prescribed by the rules; or

necessary or convenient to be prescribed for carrying out or giving effect to this Act.

To avoid doubt, the rules may not do the following:

create an offence or civil penalty;

provide powers of:

arrest or detention; or

entry, search or seizure;

impose a tax;

set an amount to be appropriated from the Consolidated Revenue Fund under an appropriation in this Act;

directly amend the text of this Act.

(3) Despite subsection 14(2) of the Legislation Act 2003, rules made for the purposes of the definition of Payment Times Small Business Identification Tool in section 5 of this Act may make provision in relation to a matter by applying, adopting or incorporating, with or without modification, any matter contained in an instrument or other writing as in force or existing from time to time.

Endnotes

Endnote 1—About the endnotes

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Abbreviation key— E ndnote 2

The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history— E ndnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Editorial changes

The Legislation Act 2003 authorises First Parliamentary Counsel to make editorial and presentational changes to a compiled law in preparing a compilation of the law for registration. The changes must not change the effect of the law. Editorial changes take effect from the compilation registration date.

If the compilation includes editorial changes, the endnotes include a brief outline of the changes in general terms. Full details of any changes can be obtained from the Office of Parliamentary Counsel.

Misdescribed amendments

A misdescribed amendment is an amendment that does not accurately describe how an amendment is to be made. If, despite the misdescription, the amendment can be given effect as intended, then the misdescribed amendment can be incorporated through an editorial change made under Legislation Act 2003.section 15V of the

If a misdescribed amendment cannot be given effect as intended, the amendment is not incorporated and “(md not incorp)” is added to the amendment history.

Endnote 2—Abbreviation key

ad = added or inserted	o = order(s)
am = amended	Ord = Ordinance
amdt = amendment	orig = original
c = clause(s)	par = paragraph(s)/subparagraph(s)
C[x] = Compilation No. x	/sub-subparagraph(s)
Ch = Chapter(s)	pres = present
def = definition(s)	prev = previous
Dict = Dictionary	(prev…) = previously
disallowed = disallowed by Parliament	Pt = Part(s)
Div = Division(s)	r = regulation(s)/rule(s)
ed = editorial change	reloc = relocated
exp = expires/expired or ceases/ceased to have	renum = renumbered
effect	rep = repealed
F = Federal Register of Legislation	rs = repealed and substituted
gaz = gazette	s = section(s)/subsection(s)
LA = Legislation Act 2003	Sch = Schedule(s)
LIA = Legislative Instruments Act 2003	Sdiv = Subdivision(s)
(md) = misdescribed amendment can be given	SLI = Select Legislative Instrument
effect	SR = Statutory Rules
(md not incorp) = misdescribed amendment	Sub-Ch = Sub-Chapter(s)
cannot be given effect	SubPt = Subpart(s)
mod = modified/modification	underlining = whole or part not
No. = Number(s)	commenced or to be commenced

Endnote 3—Legislation history

Act	Number and year	Assent	Commencement	Application, saving and transitional provisions
Payment Times Reporting Act 2020	91, 2020	14 Oct 2020	1 Jan 2021 (s 2(1) item 1)
Payment Times Reporting (Consequential Amendments) Act 2020	89, 2020	17 Sept 2020	Sch 1 (items 3–5): 1 Sept 2021 (s 2(1) item 3) Note: This amending title was affected by an editorial change (see C2021C00350)	—
Corporate Collective Investment Vehicle Framework and Other Measures Act 2022	8, 2022	22 Feb 2022	Sch 8 (items 23–31): 23 Feb 2022 (s 2(1) item 9)	Sch 8 (items 27, 30)
Administrative Review Tribunal (Consequential and Transitional Provisions No. 1) Act 2024	38, 2024	31 May 2024	Sch 1 (items 41, 66): 14 Oct 2024 (s 2(1) item 2)	—
Payment Times Reporting Amendment Act 2024	65, 2024	9 July 2024	Sch 1 (items 1–89): 7 Sept 2024 (s 2(1) item 1)	Sch 1 (items 85–89)
Administrative Review Tribunal (Miscellaneous Measures) Act 2025	14, 2025	20 Feb 2025	Sch 2 (items 29, 30): 21 Feb 2025 (s 2(1) item 2)	—

Endnote 4—Amendment history

Provision affected	How affected
Title	am No 65, 2024
Part 1
s 3	rs No 65, 2024
s 4	rs No 65, 2024
s 5	am No 89, 2020; No 8, 2022; No 65, 2024
s 7	am No 8, 2022
	rs No 65, 2024
s 8	am No 8, 2022; No 65, 2024
Part 1A
Part 1A	ad No 65, 2024
Division 1
s 10A	ad No 65, 2024
Division 2
s 10B	ad No 65, 2024
s 10C	ad No 65, 2024
s 10D	ad No 65, 2024
Division 3
s 10E	ad No 65, 2024
s 10F	ad No 65, 2024
s 10G	ad No 65, 2024
Division 4
s 10H	ad No 65, 2024
s 10J	ad No 65, 2024
s 10K	ad No 65, 2024
Division 5
s 10L	ad No 65, 2024
s 10M	ad No 65, 2024
s 10N	ad No 65, 2024
Division 6
s 10P	ad No 65, 2024
s 10Q	ad No 65, 2024
s 10R	ad No 65, 2024
Division 7
s 10S	ad No 65, 2024
Part 2
Division 1
s 11	rs No 65, 2024
Division 2
s 12	rs No 65, 2024
s 13	rs No 65, 2024
s 13A	ad No 65, 2024
s 13B	ad No 65, 2024
s 14	am No 8, 2022
	rs No 65, 2024
s 15	am No 65, 2024
s 16	am No 65, 2024
Division 3
s 18	rs No 65, 2024
s 19	rs No 65, 2024
s 20	rs No 65, 2024
s 21	rs No 65, 2024
s 22	am No 65, 2024
s 22A	ad No 65, 2024
Division 4
Division 4	ad No 65, 2024
s 22B	ad No 65, 2024
s 22C	ad No 65, 2024
s 22D	ad No 65, 2024
s 22E	ad No 65, 2024
s 22F	ad No 65, 2024
s 22G	ad No 65, 2024
s 22H	ad No 65, 2024
Division 5
Division 5	ad No 65, 2024
s 22J	ad No 65, 2024
s 22K	ad No 65, 2024
s 22L	ad No 65, 2024
Part 3
Division 1
s 23	am No 65, 2024
Division 2
s 25	am No 65, 2024
s 27	am No 8, 2022; No 65, 2024
Division 3
Division 3	ad No 65, 2024
s 27A	ad No 65, 2024
s 27B	ad No 65, 2024
Part 4
Division 1
s 28	rs No 65, 2024
Division 2
Division 2 heading	am No 65, 2024
s 29	am No 65, 2024
s 29A	ad No 65, 2024
s 30	am No 65, 2024
Division 2A
Division 2A	ad No 65, 2024
s 30A	ad No 65, 2024
s 30B	ad No 65, 2024
Division 3
s 31	am No 65, 2024
s 32	am No 65, 2024
s 33	am No 65, 2024
s 34	am No 65, 2024
s 34A	ad No 65, 2024
Division 4	rep No 65, 2024
s 37	rep No 65, 2024
Part 5
Division 2
s 40A	ad No 65, 2024
Part 6
Division 1
s 47	am No 65, 2024
Division 2
s 48	am No 65, 2024
s 49	am No 65, 2024
s 50	am No 65, 2024
Division 3
s 51	am No 65, 2024
s 53	am No 38, 2024
s 54	am No 38, 2024; No 65, 2024
s 54AA	ad No 65, 2024
	am No 14, 2025
Division 4
s 54A	rep No 65, 2024
s 54B	rep No 65, 2024
s 55	am No 65, 2024
s 55A	ad No 65, 2024
s 55B	ad No 65, 2024
s 57	am No 65, 2024
s 57A	rs No 65, 2024
s 57B	am No 65, 2024