Australia: Mandatory E-Invoicing for All Non-Corporate Commonwealth Entities

B2B E-Invoicing in Australia

The Australian Government (Department of Treasury) recently took initiative with the Business eInvoicing Right (BER) to push for the adoption of Business-to-Business (B2B) eInvoicing in Australia. The consultation, known as the Business eInvoicing Right (BER), enables companies that are ready to receive invoices in Peppol format to request that their business partners send invoices in the same format. The entity responsible for promoting the e-Invoicing system is the Australian Peppol Authority, managed by the Australian Taxation Office (ATO).

In May 2024, the Australian government allocated $23.3 million to oversee the e-invoicing network over the next four years. This initiative is part of a larger strategy to combat tax fraud and enhance the country’s digital infrastructure

It is estimated that more than 1.2 billion invoices are exchanged between businesses in Australia each year, with 90% still processed through traditional methods. Digitizing this system could save up to $20 per invoice. E-invoicing also improves payment times for businesses, particularly SMEs. By promoting its implementation, the Australian government aims to boost productivity and highlight the cost-saving benefits for businesses.

In the coming years, the Australian government aims to increase awareness and adoption of e-invoicing to help businesses:

• Work with payment providers to integrate e-Invoicing into the main payment methods used by businesses,
• Deliver educational activities to raise business awareness of e-Invoicing,
• Progress supply chain pilots with large businesses to gain insights and drive adoption across supply chains,
• Continue work with states and territories to increase public sector e-Invoicing adoption.

Watch our webinar together with Mark Stockwell, eInvoicing Director at the ATO.

Electronic Invoicing Model in Australia: Peppol

Australia has adopted the Peppol 4-corner model for the exchange of electronic invoices. This model requires a Peppol Access Point that can communicate and transform messages according to Peppol specifications.

EDICOM is an Access Point accredited by both the Australian Taxation Office (ATO) and New Zealand’s Ministry of Business, Innovation, and Employment (MBIE).

Regarding the format, both countries will implement the Peppol PINT A-NZ format, which is based on the international PINT standard. All companies will need to be able to exchange invoices and credit notes using the PINT A-NZ format, as it will become mandatory.

The transition to PINT A-NZ will replace the current ANZ Peppol BIS 3.0 format as follows:

• November 15, 2024: ANZ Peppol BIS 3.0 becomes mandatory, with PINT A-NZ as an optional format.
• May 15, 2025: All users must be able to exchange PINT A-NZ, as it will be the only supported specification for sending and receiving invoices and credit notes.

B2G e-Invoicing in Australia

Australia is promoting e-invoicing across its public administration. Since July 1, 2022, e-invoicing has been mandatory for Commonwealth Agencies, following the Peppol format and communication standards.

In July 2025, the Australian Taxation Office (ATO) announced a key update establishing e-Invoicing as the default method for invoice exchange among non-corporate Commonwealth Entities (NCEs).

This initiative is part of a broader government strategy to streamline operations, cut administrative overhead, and speed up payment cycles by leveraging structured e-Invoicing through the Peppol network.

The ATO has outlined a phased rollout with clear milestones. By July 1, 2026, at least 30% of invoices received by NCEs must be processed via e-Invoicing. This target is designed to drive early adoption while allowing organizations time to adapt their systems and processes.

The process will continue during the second half of the year. By December 2026, entities will be required not only to receive but also to automate the sending and processing of electronic invoices, moving toward fully digital, touchless workflows.

In addition, to ensure transparency and proper monitoring, NCEs will be required to report their progress on a quarterly basis to the Australian Peppol Authority (APA). This requirement reinforces the strategic importance of the initiative and ensures alignment across public sector bodies.

This is not merely a technological change, but a cultural shift in how government institutions interact with suppliers and business partners. The goal is for e-invoicing to become the primary and automated channel for commercial transactions.

Status of E-Invoicing in State and Territory Governments

The federal government is working with states and territories to expand e-invoicing adoption across the public sector.

• Most government agencies in New South Wales, South Australia, and the Australian Capital Territory are already equipped to receive e-Invoices.
• In Queensland, many agencies have gone a step further, with capabilities to both send and receive e-Invoices.
• Western Australia is actively advancing its e-Invoicing program, with plans for broader implementation in the near future.
• Tasmania is targeting full adoption of e-Invoicing across its government agencies by July 2025.
• The Victorian Government has also formally committed to embracing e-Invoicing as part of its digital strategy.
• In the Northern Territory, the government has introduced InvoiceNTG, a web-based portal that, while not Peppol-based, offers a secure and more efficient alternative to traditional PDF invoicing, helping reduce fraud risks.

Australian Digital Economy Strategy

The promotion of the electronic invoice is a part of the Australian Digital Economy Strategy for the digital transformation of the country to expedite its economic recovery. The government has budgeted 1.2 billion AUD to be spent by 2030.

The main objectives of the digital economy’s transformation are the following:

• Development of the on line digital capabilities of Australians with the development of the digitalization of companies and businesses.
• Promotion of entrepreneurial investment through fiscal incentives so companies stimulate investment in digital technologies to improve their productivity to grow and create more jobs.
• Improve the provision of government services through the development of e-government and thereby improve services like My Govand My Health
• Digitalization of SMEs.The objective is to improve the productivity of small and medium enterprises so they can capitalize on opportunities created by digital technologies. The government plans to implement consulting programs to develop digital capacities and the introduction of the electronic invoice. Investment for the digital transformation of SMEs will likely include an investment of 800 million AUD in the Digital Business Planto help companies use digital technologies to grow and create employment to help the Australian economic recovery.
• Data and the digital economy. Favor the mass and effective use of data. Data is vitally important to build a modern digital economy for Australians. Therefore, the Australian government commits to implement the first Australian data strategy to improve the effective, secure and protected use of data from 2021 to 2025.
• Development of Artificial Intelligencefor the use of the company’s economy. The government expects to create the National center for Artificial Intelligence with four Centers for Digital Capacity to lay the groundwork for an Australian ecosystem of Artificial Intelligence and Digitalization: implementation in companies, training, and the development of AI pilot projects.
• Development of emerging aviation technology like drones applied to transport, supply chain management, and digital agriculture to improve the logistics and connectivity for rural and urban Australians.
• Improve the security of the digital sphereto establish confidence and the necessary protection to develop the previous points.