Submission on the Business Payment Practices Bill

Cooperative Business NZ made this submission to the Economic Development, Science and Innovation Select Committee in response to the Business Payment Practices Bill. The Bill sought to introduce mandatory reporting requirements around invoice payment practices for large businesses.

The submission focused on how the proposed regime would apply to cooperatives and mutuals, particularly where centralised payment systems operate on behalf of large member businesses.

Submission at a glance

• Submitted by: Cooperative Business NZ 

• Date: December 2022 

• Submitted to: Economic Development, Science and Innovation Select Committee 

• Policy area: Business payments and reporting 

• Format: Written submission (PDF) 

CBNZ position

The submission supported the intent of improving transparency in business payment practices, but raised concerns that the proposed regime could create unintended consequences for cooperatives and their members. It recommended refining the coverage and reporting requirements to better target third-party payments and reduce unnecessary duplication and compliance costs.

Key issues addressed

• The structure and scale of New Zealand’s cooperative economy

• Risks of duplication where both cooperatives and their members meet reporting thresholds 

• Compliance costs arising from a one-size-fits-all reporting regime 

• Treatment of related-party transactions within cooperative and buying group models 

• Appropriate reporting frequency and thresholds 

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