Large organisations to disclose information about their payment practices
The Business Payment Practices Act 2023 will bring greater transparency to payments made by large entities. Large entities will be required to disclose their payment practices on a new public register. From July 2024 entities with revenue and expenditure over particular thresholds will need to collect information about how long they take to pay their bills.
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Purpose of disclosing payment practices
Small businesses make up over 97% of all businesses in New Zealand but they often do not have the financial resources or market power to deal with late or long payment times. Lengthy or long payment times can create cashflow problems for small businesses.
By making large entities disclose information about their payment times and terms on a new public register to be administered by the Companies Office, in the Ministry of Business, Innovation and Employment (MBIE), small businesses will be able to make informed choices about who they want to do business with.
The new transparency regime should encourage larger entities to improve their payment times to mitigate reputational risk.
Organisations that will have to make disclosures
Organisations that will have to make their payment times and terms public are those with both:
- revenue of $33 million (ex GST) or more, and
- third-party expenditure of $10 million (ex GST) a year or more
Phased implementation
Organisations with revenue of:
- $100 million or more will need to collect payment information from July 2024
- $33 million or more will need to collect payment information from January 2025
The first organisations must disclose their payment practice information by 31 March 2025. Disclosures will be due every 6 months. The Business Payment Practices Regulations confirming the information required to be collected are available on the New Zealand legislation website.
Business Payment Practices Regulations 2023(external link) — New Zealand Legislation
Making disclosures to us
The Companies Office is preparing to accept reports of payment practices from when the first reports are due in January 2025. We will have further information for reporting entities when the register is available.
Searching Business Payment Practices
As the Business Payment Practices Register is populated it will become a useful information resource for small businesses, the public, sector groups and the media. The Companies Office will have further information on searching when the register is available.
Subscribe to updates
You can subscribe to updates about the new Business Payment Practices Register.
Subscribe to updates(external link)
Related information
Improving business-to-business payment practices in New Zealand — discussion paper seeking feedback on proposals to improve business to business payment practices. February 2020.
Business Payment Practices regulations — discussion paper seeking feedback on proposed regulations and notices for the Business Payment Practices Bill. October 2022.
Regulatory Impact Statement: Better Business to Business Payment Practices(external link) — treasury.govt.nz
Consistency with the New Zealand Bill of Rights Act 1990: Business Payment Practices Bill(external link) — justice.govt.nz
Business Payment Practices Bill(external link) — parliament.nz
Business Payment Practices Act 2023(external link) — New Zealand Legislation
Business Payment Practices Regulations 2023(external link) — New Zealand Legislation
Business Payment Practices Bill Regulations Regulatory Impact Statement [PDF 407KB]