Update to the Business Payment Practices Act 2023

The Minister for Small Business and Manufacturing, Hon Andrew Bayly, announced on 22 February 2024 the Government’s intention to repeal the Business Payment Practices Act 2023.

The Minister will begin the process to introduce a repeal bill into Parliament. Until its repeal by Parliament, however, the Act remains law. 

Minister Bayly signalled in his Cabinet paper that he intends to address issues around business payment times with non-regulatory measures.

Government signals intention to repeal Business Payment Practices Act 2023

Government to address business payment practices(external link) — Beehive website

Under the Act as it stands:

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

Implementation will be phased. 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

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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

Last updated: 22 February 2024