Australia launches a fast payer list recognising businesses that pay small suppliers in 20 days. Only 2.3% qualify.
What’s happening: The Payment Times Reporting Regulator launched the Fast Small Business Payer List on 2 February, publicly recognising large businesses that consistently pay small suppliers in 20 days or less.
Why this matters: The regulator found big businesses’ 95th percentile payment time actually worsened overall between January 1 and June 30, 2025, rising to 64 days from the previous 58 days.
Australian regulators have launched a public honour roll recognising large businesses that pay their small suppliers quickly, as new data reveals the slowest payments are deteriorating despite government reforms.
The Payment Times Reporting Regulator released the Fast Small Business Payer List on 2 February, an incentive established under the Payment Times Reporting Act 2020 to promote prompt payment practices and improve cash flow for small businesses across Australia. View the Fast Small Business Payer List.
Between 1 January and 30 June 2025, only 83 entities, or 2.3 per cent of reporting businesses and Commonwealth entities, qualified as fast payers. To qualify for the list, a large business’s 95th percentile payment time must be 20 days or lower.
Honour roll launched
The 95th percentile payment time represents the average number of days it takes a large business to pay 95 per cent of its small business invoices, reflecting typical payment behaviour and giving small suppliers a better idea of when they can expect payment.
Businesses included on the list have demonstrated a commitment to paying small business invoices within shorter timeframes. This helps small suppliers meet operating costs, invest and grow.
The list is published daily and made publicly available on the interactive Payment Times Reports Register, providing transparency and encouraging improved payment performance across the market.
By celebrating better payment practices, the Payment Times Reporting Regulator aims to drive cultural change and support stronger outcomes for Australia’s small business community and economy.
Slowest payments deteriorating
Despite the new incentive scheme, the latest data reveals significant deterioration in payment performance for the slowest payers.
The regulator found the average number of days it takes a large business to pay 95 per cent of its small business invoices rose to 64 days from the previous 58 days. While average payment times remained relatively stable, it indicates the slowest payments are getting even slower. This disproportionately affects cash flow for small businesses.
Common payment terms averaged 29 days over the reporting period. This means it’s taking longer than double the average agreed payment term for the vast majority of small business invoices to be paid, according to the regulator’s analysis.
The payment times challenge has significant economic implications for Australian small businesses. Late payments have historically cost small businesses billions annually through reduced working capital and increased financing costs.
Compliance actions escalate
The regulator has taken decisive action to strengthen compliance with reporting obligations. According to the January 2026 Regulator’s update, authorities contacted 1,334 suspected non-reporters, after which 293 entities submitted missing reports. Additionally, 202 warning letters were sent about late reports.
The regulator wrote to over 650 entities advising them they had been identified as slow small business payers, outlining the consequences of inaction and strongly urging them to immediately review their payment practices and take concrete steps to reduce payment times.
Infringement notices were also issued under the Regulatory Powers Act where the regulator believed on reasonable grounds that an entity had contravened a civil penalty provision of the Payment Times Reporting Act 2020.
The actions demonstrate an escalating approach to compliance and enforcement, reinforcing expectations that reporting entities meet their legal obligations.
With the Australian Government’s reforms to the Payment Times Reporting Scheme now largely implemented, the January edition of the Regulator’s update sets out priority focus areas for 2026. These are to raise the profile of the Scheme and promote responsible payment practices.
The Fast Small Business Payer List represents one half of a two-pronged incentive system. Large businesses identified as being in the slowest 20 per cent of payers can be directed by the Minister for Small Business to publicly disclose their status as slow small business payers on their websites and in relevant documents.
The regulator will host an online Stakeholder Liaison Forum on 12 March 2026 to discuss the latest insights and the new fast and slow small business payer incentives.
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