Industry seeks Labor amendments to make scheme comprehensive as possible
The Australian Trucking Association (ATA) is backing federal Labor amendments seeking to stiffen the proposed Payment Times Reporting Scheme (PTRS).
The Payment Times Reporting Bill 2020 is currently under debate in the Senate and aims to introduce such a scheme and penalties for big business who continue to pay their bills late.
“The ATA has been calling for the new Payment Times Reporting Scheme to be backed by stronger action to deliver fair payment times for the trucking industry,” ATA chair David Smith says.
“Without amendments, the new scheme would try to improve payment times by transparently reporting the payment practices of big business.
“In the UK, a similar approach reduced the proportion of big business paying bills late from 30 per cent to 28 per cent over two years.
“The approach is welcome, but not strong enough.
“Transparency and monitoring simply does not compel the worst offenders to improve their payment practices.”
Read about the industry’s cautions optimism for the Bill, here
The ATA back the proposed amendments as establishing a “failsafe mechanism” – if the reporting scheme does not broadly reduce payment times to small businesses to 30 days or less, the failsafe mechanism would be triggered.
“International experience is that 30 day payment terms must be backed with penalties, or the worst offenders simply do not change their payment practices,” Smith says.
“Labor’s proposed payment times failsafe would see big businesses face fines for not paying small business on time, providing a strong incentive to make the reporting scheme actually deliver results.
“The ATA strongly backs the failsafe and urges Parliament to pass both the Labor amendment and the Coalition’s proposed reporting scheme.
“We welcome the commitment of both sides of politics to reducing unfair payment times.”
The ATA underlines that extended payment times are a critical issue for the trucking industry.
“Trucking is a small and family business industry, working on tight margins and with little power in dealing with large businesses,” Smith says.
“Most of the costs incurred by trucking businesses must be met before they can bill their customers.
“These include wages or personal living costs, fuel, tyres, insurance, finance costs, registration and maintenance.”
Other amendments on the Senate table include Pauline Hansen’s One Nation seeking review of the efficacy of mandated maximum payment periods for invoice payments and the Jaqui Lambie Network wanting obligations tightened, small businesses enabled to request the regulator to apply to court for the imposition of civil penalties for noncompliance and payment within 21 days.