Late payers put on notice

Original article by Robert Gottliebsen
The Australian – Page: 21 : 25-Jun-20

The federal government proposes to introduce a new supplier payments disclosure regime for businesses with turnover of $100m or more. They will be required to submit regular reports on how quickly they pay the invoices of small business suppliers. The disclosure regime takes effect at the start of 2021, but the 3,000 or so large enterprises that will be affected need to start preparing for it immediately. The proposed Payment Times Reporting Regulator will be responsible for enforcing the legislation and determining whether a supplier is a small business for the purposes of the disclosure regime.

CORPORATES

What’s our strategy for slump in wake of virus?

Original article by Robert Gottliebsen
The Australian – Page: 25 : 26-Feb-20

Research by Roy Morgan shows that one-in-six Australian businesses have already been impacted by the coronavirus outbreak. This includes sectors of the economy that are among the biggest employers, such as manufacturing and education. However, small and medium enterprises are likely to be hardest hit by the economic fallout from the virus. The federal government is therefore to be commended for proposing to require large companies to pay suppliers more promptly. At present, the proposed legislation only applies to businesses with turnover of up to $10m, but it should be expanded to include medium-sized businesses.

CORPORATES
ROY MORGAN LIMITED

Rio joins Telstra in supplier backflip

Original article by Jared Lynch, Nick Evans
The Australian – Page: 17 & 20 : 6-Feb-20

Rio Tinto CFO Simon Trott has advised that about 90 per cent of its Australian suppliers will now be paid within 20 days. Businesses with annual turnover of up to $10m will also now be designated as a small supplier, rather than just those which supply up to $1m worth of goods and services to the resources giant each year. Rio Tinto recently shelved its ‘dynamic discounting’ scheme, while Telstra has also reduced its payment terms to just 20 days. Small Business & Family Enterprises Ombudsman Kate Carnell says other large companies should do so.

CORPORATES
RIO TINTO LIMITED – ASX RIO, TELSTRA CORPORATION LIMITED – ASX TLS, AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN

Rio mining big data, AI to bleed desperate suppliers

Original article by Jared Lynch, Nick Evans
The Australian – Page: 15 & 18 : 28-Jan-20

Rio Tinto has stressed that it is committed to 30-day payment terms for its suppliers, following reports that it is offering to pay invoices before the due date in exchange for a discount of up to two per cent. The so-called ‘dynamic discounting’ scheme is generating significant cost savings for Rio Tinto, but it has attracted criticism from Small Business Ombudsman Kate Carnell and Western Australian Premier Mark McGowan. Rio Tinto is also said to be using big data and artificial intelligence technology to determine how much of a discount a supplier is prepared to accept.

CORPORATES
RIO TINTO LIMITED – ASX RIO, AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET

Single medical bills one step too far as doctors stand their ground

Original article by Sean Parnell
The Australian – Page: Online : 3-Jan-18

Sussan Ley, who was federal health minister at the time, made an election commitment in 2016 that patients would receive a single medical bill covering all procedures and expenses. However, Michael Gannon, the president of the Australian Medical Association, says that is something his members would never agree to, saying it would place too much power in the hands of the person who would be charged with putting it together. The issue comes at a time of calls for greater transparency of medical fees and expenses.

CORPORATES
AUSTRALIAN MEDICAL ASSOCIATION LIMITED, AUSTRALIA. DEPT OF HEALTH

Coles to reduce pay time for suppliers to 14 days

Original article by Fleur Anderson
The Australian Financial Review – Page: 2 : 3-Mar-17

Small Business & Family Enterprise Ombudsman Kate Carnell will shortly make recommendations on sanctions for large companies that do not pay suppliers promptly. Meanwhile, Coles has committed to reducing its payment terms for many smaller suppliers from an average of 30 days to no more than 14 days. Coles MD John Durkan stresses that the new policy, which takes effect from mid-2017, is being introduced independently of Carnell’s review of payment terms.

CORPORATES
COLES SUPERMARKETS AUSTRALIA PTY LTD, AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN, RED KELLY’S GOURMET FOODS PTY LTD, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, MARKET INVOICE

Rio’s pay delay gambit may fail

Original article by Paul Garvey
The Australian – Page: 20 : 12-Apr-16

Mining industry sources doubt that Rio Tinto will be able to enforce its revised payment terms for contractors and suppliers. The resources giant recently advised that it will pay invoices 90 days after receipt, compared with 45 days at present, and up from 30 days in 2015. Some industry watchers have suggested that the new payment schedule is more likely to apply to Rio’s future contracts, as suppliers will need to agree to any changes to existing arrangements.

CORPORATES
RIO TINTO LIMITED – ASX RIO, MONADELPHOUS GROUP LIMITED – ASX MND, WORLEYPARSONS LIMITED – ASX WOR, MACMAHON HOLDINGS LIMITED – ASX MAH, AUSDRILL LIMITED – ASX ASL, NRW HOLDINGS LIMITED – ASX NWH, BRIERTY LIMITED – ASX BYL, BHP BILLITON LIMITED – ASX BHP