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  • E-invoicing for government

    The Australian Government is committed to delivering e-invoicing.

    As part of the Digital Business Plan, the government has announcedExternal Link that:

    • the Commonwealth will mandate e-invoicing for all agencies by 1 July 2022, with over 80% of invoices being able to be received electronically by 1 July 2021
    • it will also consult on options for mandatory adoption of e-invoicing across all levels of government and by businesses.

    With over 1.2 billion invoices exchanged in Australia annually, savings to our economy are estimated to be $28 billion over 10 years.

    Figure 1: Benefits to the Australian economy

    Infographic showing the benefits to the Australian economy of e-invoicing, as described. Over 1.2 billion invoices exchanged annually equates to a saving of $28 billion over 10 years.

    Benefits for government

    Adopting e-invoicing across all levels of government is good for the economy. It helps us support small businesses and improves our internal processing. Better payment terms and more streamlined processing for businesses supplying us with goods and services can improve our relationships. It can also reduce administrative delays and payment issues.

    E-invoicing cuts down the need for manual input. This reduces mistakes and results in 'cleaner' data. E-invoicing's centralised system can also increase accuracy and timeliness of financial and budget reporting, providing a better overview of finances.

    Getting government agencies started with e-invoicing

    Australian Government agencies should use e-invoicing to experience the benefits it can bring.

    Many government agencies have already started with e-invoicing, including us. From 1 January 2020, Australian Commonwealth Government agencies who are capable of receiving e-invoices began paying eligible e-invoicesExternal Link within five days or else pay interest on any late payments. Talk to an e-invoicing accredited access point or service provider to get set up for e-invoicing.

    Detailed information to assist government agencies to prepare for and implement e-invoicing is available on the e-invoicing SharePoint pageExternal Link on GovTEAMS.

    Note: You must have a GovTEAMS account to access this site. Refer to 'See also' for how to register.

    Steps to help you prepare for e-invoicing

    How you process invoices now

    Review your business processes and requirements to understand your current state of invoicing, including:

    • how many invoices you send and receive, and how often
    • how you send, receive and process invoices and if you use purchase orders
    • identifying your top suppliers and buyers (by number of invoices)
    • if you use software and scanning tools to manage your accounts payable and receivable.

    How you could implement e-invoicing

    • Talk to your software providers to understand your existing software and tools, and whether they are or will be e-invoicing enabled.
    • Talk to different e-invoicing service providers.
    • Establish your return on investment (ROI) and other considerations to support your investment decision.

    How to get ready for e-invoicing

    • Understand and manage changes in business processes within your organisation.
    • Get your trading partners ready for the upcoming change.

    How to onboard your suppliers

    • Test your solution with your trading partners.
    • Progressively onboard your trading partners focussing on those with most benefit to your organisation, for example, high volume suppliers or high error rate invoices.

    How to get the most out of e-invoicing

    Transition as many of your trade partners to the e-invoicing channel to maximise your benefits.

    Next steps:

    See also:

    Last modified: 12 Nov 2020QC 63456