Here's some important information that many of our clients will need to know.
The NZ business landscape is constantly changing and your company may need to comply with the new “Business Payment Practice Act 2023” as early as July this year depending on your annual revenue. This new act means that small New Zealand businesses can make informed decisions on whether they are happy to accept the payment terms that are publicly available from large companies. Ultimately protecting them and their cash flow.
Organisations that will have to make their payment times and terms public are those with both:
- Annual revenue of $33 million (ex GST) or more, and
- Third-party expenditure of $10 million (ex GST) a year or more
This will be phased over the next 5-12 months for organisations with revenue of:
- $100 million or more needing to collect payment information from July 2024
- $33 million or more needing to collect payment information from January 2025
To see the full details you can go to the mbie website via this link here.
