22DSlow small business payers

22D Slow small business payers

(1) An entity that is a reporting entity or a reporting nominee is a slow small business payer for a reporting cycle if the entity was within: (a) the slowest 20% of small business payers for that reporting cycle; or (b) the slowest 20% of small business payers in a Division of the Australian and New Zealand Standard Industrial Classification for that reporting cycle. (2) For the purposes of subsection (1), slowest 20% of small business payers and slowest 20% of small business payers in a Division of the Australian and New Zealand Standard Industrial Classification, for a reporting cycle, have the meanings prescribed by the rules. (3) Without limiting subsection (2), rules made for the purposes of that subsection may provide that whether an entity is within a class of entities mentioned in paragraph (1)(a) or (b) is to be worked out with regard to the payment terms, times and practices of: (a) the entity; and (b) if the rules require the entity’s payment times reports to include information or documents about other entities that the entity controls—those other entities. (4) Despite subsection (1), an entity is not a slow small business payer for a reporting cycle if: (a) the entity has given the Regulator a payment times report for a reporting period that ended within that reporting cycle; and (b) the payment times report has a qualifying payment time of 30 days or less. (5) For the purposes of paragraph (4)(b), qualifying payment time of 30 days or less has the meaning given by the rules.