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  • E-invoicing for government

    The Australian Government is committed to delivering Peppol e-invoicing.

    Peppol is an international standard and network adopted by the Australian Government for electronic exchange of e-invoicing and other procurement documents.

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

    Consultation on options for mandatory adoption of e-invoicing across all levels of government and by businesses is ongoing.

    Commonwealth government agencies

    From 1 January 2020, Commonwealth agencies capable of receiving Peppol e-invoices began paying eligible e-invoicesExternal Link within five days, or pay interest on any late payments.

    As part of the Digital Business PlanExternal Link all Commonwealth agencies are mandated to adopt e-invoicing by 1 July 2022.

    The ATO is currently supporting agencies to meet their obligations, engaging with them and providing a range of tools and templates.

    State and territory governments

    The ATO is working with states and territories to extend public sector e-invoicing adoption.External Link

    The New South Wales Government has committed to e-invoicingExternal Link by 1 January 2022.

    The Queensland Government has also announced its commitment to developing e-invoicing capability.

    All other states and territories are considering how they approach e-invoicing.

    Email us for more information about e-invoicing adoption in your state.

    Local governments

    The ATO has engaged with all local government organisations and their associations across the country, raising awareness of e-invoicing and its benefits. We’re working with their software providers to make e-invoicing options easily available.

    Email us for more information and to find out how we can help.

    Benefits for government

    Adopting e-invoicing across all levels of government helps us support small businesses and improves our internal processing. Making it quicker and easier for businesses who supply us with goods and services can improve our relationships. It can also reduce administrative delays and payment issues.

    The benefits of e-invoicing include:

    • reduced manual data entry and less mistakes, resulting in 'cleaner' data
    • greater accuracy and timeliness of financial and budget reporting, giving a better overview of finances and procurement practices
    • reduced risk of fraud and scams perpetrated via email due to a more secure network and direct messaging.

    Getting government agencies started with e-invoicing

    Many government agencies have already started using e-invoicing, including us.

    You can talk to an e-invoicing service provider to get connected to the network. We’ve established the Peppol Capabilities and Associated Services Panel to help you procure e-invoicing services.

    Email Peppol Panel for more information.

    Steps to help you prepare for e-invoicing

    Identify how you process invoices now

    Review your business processes and requirements to understand your current state of invoicing. This includes:

    • 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.

    Find out about your e-invoicing options

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

    Get ready for e-invoicing

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

    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.

    Get the most out of e-invoicing

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

    See also:

    Last modified: 17 Sep 2021QC 63456