New business payments disclosure regime to improve transparency
Published: 16 September 2022
A new Business Payment Practices disclosure regime, announced by the Government today, will improve information and transparency around business-to-business payment practices across the economy.
The new regime will make business payment practices more publicly visible by centralising information on large firms’ payment practices into one easily accessible and searchable register, administered by the Ministry of Business, Innovation and Employment.
Large firms will be required to publicly report on their own payment practices, particularly late payments, and the length of time between the receipt of invoices and full payment. This information will need to be submitted every six months, which is consistent with similar regimes in Australia and the United Kingdom.
The regime will benefit small businesses, which make up 97% of all businesses in New Zealand. These businesses are more heavily impacted by the stresses and uncertainties caused by late and overdue payments.
This new regime is part of a range of actions the Government is taking to address the vulnerabilities of small businesses in doing business with larger entities, which were identified in the Small Business Council’s Small Business Strategy.
Consultation with the business community on the specific reporting measures will take place shortly. Reporting is expected to start in 2024, to ensure reporting entities have time to understand what the requirements are.
Read the Minister’s press release(external link) — Beehive.govt.nz
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