Australia Plans to Make B2G e-Invoicing Mandatory in 2022

australia einvoicing b2g

Australia is committed to digital transformation as an essential part of its economic recovery plan. Among other measures, the path toward business digitalization will include the mandatory adoption of electronic invoicing in the B2G sector by July 1, 2022.

The Australian government is moving toward making e-invoicing mandatory for all Commonwealth agencies as part of the JobMaker Plan, a framework for job creation and economic recovery. Although the deadline is July 2022, it is expected that by July 2021 more than 80% of invoices will be received electronically.

They later plan to make electronic invoicing mandatory at all levels of government and to require adoption by private companies. A budget of $3.6 million Australian dollars has been allocated for this purpose.

The Australian government is encouraging the use of electronic invoicing due to the many benefits it represents for companies. In this vein, it approved the Supplier Pay On-Time or Pay Interest Policy decree in January 2020, requiring public administrations that receive electronic invoices through PEPPOL to pay their suppliers within 5 days. The only prerequisite is that the value of the contract be equal to or below 1 million AUD.

Another strategy has included establishing advantageous partnerships, such as the one enacted with New Zealand in 2018: Australia and New Zealand Government Electronic Invoicing Arrangement.

This agreement aims to improve productivity and reduce costs in business operations for both governments and companies. It does so by creating a single, interoperable digital market with a common billing system based on PEPPOL. Since 2019, all businesses and public institutions could voluntarily invoice electronically in both New Zealand and Australia using this system.

Requirements for Electronic Invoicing in Australia

Companies that want to start invoicing electronically in Australia must consider the technical and legal requirements defined by the government:

  • Must have an Access Point accredited by the country's PEPPOL authorities that can convert messages to PEPPOL specifications
  • Both the issuer and the recipient must have invoicing software that can transform electronic invoices extracted from their management system into the standard PEPPOL BIS Billing 3.0 format

Benefits of Electronic Invoicing, Part of Australia's JobMaker Plan

Job creation and economic recovery are central tenets of the JobMaker Plan, in which the Australian government plans to invest $74 billion AUD.

Business productivity, resource optimization and cost savings are key factors in ensuring competitivity in the market. Implementing technological solutions to help achieve these objectives is key.

What does electronic invoicing contribute to businesses?

  • Electronic invoicing is the gateway to using electronic data exchange as the predominant management model in a company. EDI (Electronic Data Interchange) technology can be applied to other processes, such as the integration of orders or delivery notes.
  • Automating operations with EDI technology improves productivity, increases efficiency in administrative processes, and reduces invoice delivery times.
  • E-invoicing reduces costs due to errors and eliminates the need for paper document storage and delivery by post.
  • It improves security of business transactions, increasing trust between trading partners.
  • Finally, companies that are prepared to invoice electronically and have a solution such as the EDICOM Electronic Invoicing Platform can operate globally, both with public administrations and other businesses. This solution enables the management of B2B2G electronic invoices in accordance with national specifications in more than 70 countries.

EDICOM – Accredited PEPPOL Access Point in Australia and New Zealand

EDICOM was accredited as an Access Point for the PEPPOL network by the Australian Taxation Office (ATO) in 2020.

Accreditation as an Access Point allows EDICOM to connect to the PEPPOL platform, through which private companies and governments exchange electronic documents of any kind.

EDICOM develops and manages its own PEPPOL technology without the use of third parties, allowing for flexibility and agility in meeting the demands of markets using PEPPOL standards.

Learn more about the potential benefits for your company

Get in touch with an EDICOM representative