Five Million Voices

Should the Business Payment Practices Act 2023, which required large businesses to report their payment times to suppliers, be repealed?

The bill repeals the Business Payment Practices Act 2023 and revokes the secondary legislation made under it, ending the planned reporting regime before it took effect.

⚡ Taken under urgency

Parliament advanced this bill under urgency (committee of whole house, first reading, second reading, third reading) — moving it through faster than usual, with less time than normal for public submissions.

MPs’ arguments for and against the bill

Why support it
  • Supporters argued the Australian equivalent scheme did not work, with only about 1 percent of small businesses aware of it, and an independent review found it ineffective.
  • Supporters said the payment information would always be roughly 10 months out of date, while a credit agency can provide more current and detailed information for around $35.
  • Supporters argued the Government can address late payments more effectively through other measures such as faster Government payment targets, e-invoicing, an industry-led payment code, and existing Fair Trading Act remedies, without this legislation.
Why oppose it
  • Opponents argued that repealing the Act removes a tool addressing a genuine problem before any comprehensive replacement is in place.
  • Opponents said a voluntary code would not be binding and would let large businesses choose whether to pay small suppliers on time.
  • Opponents argued large businesses should be required to collect and report payment information so standards are set for the most powerful firms, and that e-invoicing is neither new nor a sufficient solution.

These are claims MPs made in Parliament’s debate — not verified facts.

Full bill summary & link to official bill page

This bill repeals the Business Payment Practices Act 2023, which had established a mandatory disclosure regime. Under that scheme, large businesses above a size threshold had to register and publicly report how promptly they paid their suppliers' invoices. Repealing the Act removes that reporting obligation and dismantles the associated public register. It affects large companies that would otherwise have to disclose their payment times, and the small-business suppliers the disclosure scheme was intended to help.

It is a government bill that repeals a named Act (the Business Payment Practices Act 2023) before its reporting regime became fully operational. The argument in favour is that the scheme imposed compliance costs and administrative burden on business without clear evidence it would actually speed up payments, and that market and voluntary approaches are enough. The argument against is that slow payment squeezes small suppliers' cash flow, and public transparency about poor payers was a low-cost way to pressure large firms into paying on time.

See the Parliament.nz ↗ site for the full bill.

Oppose (No) Support (Yes)

Business Payment Practices Act Repeal Bill · Third Reading, 5 Mar 2024
Parliament voted 68–54 — it passed.