Sussan Ley (Farrer, Liberal Party, Shadow Minister for Women) Share this | Link to this | Hansard source

I rise to speak today as the shadow minister for small and family business on behalf of the coalition. I rise to speak to the bill currently before the House, namely, the Payment Times Reporting Amendment Bill 2024. This bill represents a step towards addressing the chronic issue of late payments to small businesses by large corporations.

As someone who, like many on the side of the House, has run a family business—in my case, a farm—I'm acutely aware of the cash flow challenges faced by our small-business sector. Yes, we know from all the data, and the surveys and the news in the press that times are really tough for our small businesses, but above all that we hear it in the voices of so many small-business owners that we speak with in our communities each and every day. It would be of no surprise to anyone in this House that cash flow is, more than ever, a matter of survival for our small businesses. If cash is king, cash flow is a kingmaker. The coalition, therefore, welcomes any measure that ultimately intends to alleviate the cashflow pressures on Australian small and family businesses.

The Payment Times Reporting Act 2020, which the bill seeks to amend, was a significant piece of legislation. By mandating that businesses with revenues exceeding $100 million report their payment times, the act has ensured that a light is shone on those big businesses that delay payments, often to the detriment of small-business suppliers and further down the contractual chain as well. It was the former coalition government that acknowledged that there is a difference in the resources and expertise available to large corporations compared to that which is available to a small business.

There will always be power imbalances that exist in the commercial world. It should, however, never be the case that the government of the day is empowered to pass judgements of commercial equity. No-one should have to go near the Treasurer's foot with a measuring tape. There exist, however, differences between the capacity and viability of small businesses seeking to assert their contractual rights compared with large corporations that seek the same. The former coalition government listened to Australian small businesses desperate to see an improvement in payment times from large businesses, and established a ledger of its own—namely the Payment Times Reporting Scheme which operates today. This bill, informed by the statutory review and commissioned by the current government, introduces several amendments aimed at improving the operation and effectiveness of the Payment Times Reporting Scheme.

The coalition is pleased to see that the bill contains a streamlining of reporting obligations and aims to reduce the regulatory burden experienced by reporting entities. Simplifying the compliance processes while maintaining the integrity of the data collected is a pragmatic approach that will benefit all parties to commercial dealings present and prospective. The coalition considers it right also that government agencies will be captured by the scheme. Government agencies should be a model payer of Australian small businesses. The provision allowing for consolidated reporting in accordance with Australian accounting standards is a sensible move. This will improve the quality, completeness and comparability of the data reported, making the register a more effective tool for monitoring and addressing payment practices, especially where it reaches outside our borders.

We must remain vigilant, however, about the potential unintended consequences of the additional regulations and ministerial powers contained within this bill. Ministerial discretion, when complemented by ministerial responsibility, is not a bad thing. The coalition maintains some reservations, however, as to the provisions contained within this bill whereby ministerial responsibility can be avoided in the same instance where the ministerial discretion exists. It is critical that we balance the need for regulation with the need to maintain a dynamic and competitive marketplace for Australian businesses small and large.

The coalition will support the Payment Times Reporting Amendment Bill 2024. However, we will seek to work with all parties in the Senate to propose sensible amendments which better align the commercial incentives that operate within the bill with the amended objects of the act.

Debate adjourned.