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6           Payment Times Reporting Bill 2020

Payment Times Reporting (Consequential Amendments) Bill 2020

Order of the day read for the adjourned debate on the motion of the Minister for Trade, Tourism and Investment (Senator Birmingham)—That these bills be now read a second time.

Debate resumed.

Question put and passed.

Bills read a second time.

The Senate resolved itself into committee for the consideration of the bills.

 

 

 

In the committee

Bills taken together and as a whole by leave.

Explanatory memoranda : The Minister for Employment, Skills, Small and Family Business (Senator Cash) tabled the following documents:

Payment Times Reporting Bill 2020—Supplementary explanatory memorandum relating to the government amendments to be moved to the bill.

Payment Times Reporting Bill 2020 and the Payment Times Reporting (Consequential Amendments) Bill 2020—Addendum to the explanatory memorandum.

Senator Cash moved the following amendments together by leave:

Payment Times Reporting Bill 2020

Clause 5, page 3 (after line 14), before the definition of Australia , insert:

ABN has the same meaning as in the A New Tax System (Australian Business Number) Act 1999 .

Clause 5, page 3 (after line 20), after the definition of authorised officer , insert:

Business Industry Codes means the Business Industry Codes published by the Australian Taxation Office, as in force or existing from time to time.

Note:         The Business Industry Codes could in 2020 be viewed on the Australian Taxation Office’s website (https://www.ato.gov.au).

Clause 5, page 3 (after line 24), after the definition of civil penalty provision , insert:

commencement day means the day this Act commences.

Clause 5, page 5 (after line 25), after the definition of payment times report , insert:

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

Clause 5, page 7 (line 2), omit the definition of small business , substitute:

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

Note:         An entity will be described as a small business in the Payment Times Small Business Identification Tool during an income year for the entity if it carries on an enterprise in Australia and its annual turnover (within the meaning of the Income Tax Assessment Act 1997 ) was less than $10 million for the most recent income year.

Clause 14, page 13 (lines 4 to 30), omit subclause (1), substitute:

Content requirements

   (1)  The report must:

                       (a)  state the entity’s name; and

                      (b)  if the entity has an ABN—state the ABN; and

                       (c)  include a description of the entity’s main business activity in accordance with the Business Industry Codes; and

                      (d)  state the reporting period to which the report relates; and

                       (e)  include a statement on the standard payment periods for the entity at the start of the reporting period, including in relation to the shortest and longest standard payment periods for the entity; and

                       (f)  include details and an explanation of any changes to the standard payment periods for the entity during the reporting period, including in relation to the shortest and longest payment periods for the entity; and

                      (g)  state the proportion, determined by total number and total value, of small business invoices paid by the entity during the reporting period that were paid in accordance with each of the following subparagraphs:

                                     (i)  within 20 days after the day (the issue day ) the relevant small business invoice was issued;

                                    (ii)  between 21 and 30 days after the issue day;

                                   (iii)  between 31 and 60 days after the issue day;

                                   (iv)  between 61 and 90 days after the issue day;

                                    (v)  between 91 and 120 days after the issue day;

                                   (vi)  more than 120 days after the issue day; and

                      (h)  state the proportion, determined by total value, of all procurement by the entity during the reporting period that was procurement from small business suppliers; and

                       (i)  include the details of the principal governing body of the entity; and

                       (j)  if the entity is a member of a controlling corporation’s group—identify the controlling corporation; and

                      (k)  include a declaration by a responsible member of the entity that the report will be provided to the principal governing body of the entity; and

                       (l)  state the name of the responsible member who signed the report under subsection (5) and the date it was signed; and

                     (m)  state the name and contact details of the individual giving the report to the Regulator; and

                      (n)  if a notifiable event has occurred since the last payment times report (if any) for the entity was given to the Regulator—include details of the notifiable event; and

                      (o)  include any other information or documents prescribed by the rules.

Clause 14, page 13 (line 32), omit “paragraph (1)(d)”, substitute “paragraph (1)(g)”.

Clause 14, page 14 (line 1), omit “paragraph (1)(i)”, substitute “paragraph (1)(o)”.

Clause 14, page 14 (after line 20), at the end of the clause, add:

Form and manner for giving report

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

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

Clause 27, page 21 (after line 19), after paragraph (3)(b), insert:

                     (ba)  subsection 14(7) (approval of a form or manner for giving payment times reports);

Clause 28, page 22 (line 17), omit “18 months”, substitute “12 months”.

Clause 37, page 33 (line 6), omit “18 months”, substitute “12 months”.

Clause 47, page 38 (lines 4 to 6), omit the paragraph beginning “This Part deals”, substitute:

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

Clause 47, page 38 (after line 8), after the paragraph beginning “This Part also provides”, insert:

In addition, this Part provides that certain entities are taken to have become reporting entities before the commencement day, with their first reporting periods starting on or after the commencement day. It also provides for further time after the commencement day for entities to voluntarily elect to become reporting entities.

Page 45 (after line 1), before clause 55, insert:

54A   Application—certain entities taken to have become reporting entities before commencement day

   (1)  This section applies if:

                       (a)  an income year (the relevant income year ) for a constitutionally covered entity started 6 months or less before the commencement day; and

                      (b)  the entity would have been covered by subsection 7(2) at the start of the relevant income year had this Act been in force at that time.

   (2)  The entity is taken to have become a reporting entity at the start of the relevant income year.

Note:         The entity continues to be a reporting entity until it ceases to be a reporting entity under subsection 7(3) or (4).

   (3)  Despite paragraph 8(a), the first 6 months of the relevant income year is not a reporting period for the entity.

54B   Application—further time after commencement day for voluntary election to become reporting entity

   (1)  This section applies if:

                       (a)  an income year (the relevant income year ) for a constitutionally covered entity started:

                                     (i)  6 months or less before the commencement day; or

                                    (ii)  within the period of 2 months starting on the commencement day; and

                      (b)  the entity gives the Regulator notice in writing that the entity elects to become a reporting entity; and

                       (c)  the notice is given after the start of the relevant income year but within the period of 2 months starting on the commencement day.

   (2)  The election is taken to have been made under paragraph 7(1)(b), and the entity is taken to have become a reporting entity at the start of the relevant income year.

Note 1:      An entity that is only a reporting entity because of an election under paragraph 7(1)(b) is a volunteering entity: see section 5.

Note 2:      The entity continues to be a reporting entity until it ceases to be a reporting entity under subsection 7(3) or (4).

   (3)  If the relevant income year started before the commencement day, then, despite paragraph 8(a), the first 6 months of the relevant income year is not a reporting period for the entity.

Page 46 (after line 9), after clause 57, insert:

57A   Review of operation of this Act

   (1)  The Minister must cause an independent review of the operation of this Act to be conducted within 6 months after the second anniversary of the commencement day.

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

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

   (3)  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.

Clause 58, page 46 (line 27), omit “ small business ”, substitute “ Payment Times Small Business Identification Tool ”.

 

 

 

At 11.45 am : The committee reported progress.