Australia Pushes for B2B e-Invoicing

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).

The goal is to promote the use of electronic invoicing across both the public and private sectors. While e-invoicing is not yet mandatory, the Australian government is encouraging businesses to adopt it as part of its broader push for digital transformation. 

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

The Australian government has launched an initiative for the adoption of e-Invoicing in the public sector. From July 1st, 2022, the use of e-Invoicing will be mandatory for all Commonwealth Agencies following the Peppol standard.

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 New South Wales government agencies have implemented e-invoicing and are now able to receive e-invoices.
• The majority of South Australian government agencies are also capable of receiving electronic invoices.
• Most Australian Capital Territory government agencies can now accept e-invoices.
• The Western Australian government has announced a pilot program for e-invoicing.
• The Queensland government has committed to developing its e-invoicing capability.
• The Tasmanian government is rolling out e-invoicing across all its agencies.
• The Victorian government has similarly committed to adopting e-invoicing.

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 Gov and 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 Plan to 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 Intelligence for 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 sphere to establish confidence and the necessary protection to develop the previous points.