Every time an eInvoice replaces a paper invoice it can deliver up to $20 in cost savings to the businesses involved according to Deloitte Access Economics estimates. With approximately 89 per cent of small and medium businesses continuing to process invoices manually, and over 1.2 billion invoices being exchanged in Australia annually, there are significant productivity and costefficiency benefits for Australian businesses if eInvoicing is adopted more widely.
In December 2019, the Government took action to advance the adoption of eInvoicing by implementing the Pan European Public Procurement OnLine (Peppol) framework, an internationally recognised framework for eInvoicing, and establishing the Australian Taxation Office as the Australian Peppol Authority to develop and administer the framework in Australia. As part of the 2020-21 Budget, the Government announced it would take further action to accelerate the adoption of Peppol eInvoicing for the public and private sectors by mandating that all Commonwealth Government agencies must be able to receive Peppol eInvoices by 1 July 2022, with large agencies having to do so by 1 July 2021.
The Government also announced that it would consult on options to accelerate adoption of eInvoicing by businesses, including options for mandatory adoption by businesses. Feedback from stakeholders is sought on the proposed options to accelerate eInvoicing adoption by businesses.