As e-invoicing specialists, Capability Wise has been closely watching the progress of the joint Australian and New Zealand Government’s Peppol e-invoicing initiative. The initiative was originally announced by the respective Prime Ministers back in February 2019, and is expected to save an estimated $30 billion in reduced transaction costs.
As part of the Budget 2021 early announcements, the Australian government has declared that it is going all in on e-invoicing. Today the Prime Minister and Treasurer jointly announced a mandate for all Commonwealth Government agencies to support e-invoicing by 1 July 2022.
This is a significant move that is intended to bolster Australia’s post-COVID economic recovery. In the announcement, the Prime Minister also flagged the intention to consult on madatory adoption of e-invoicing by all Australian businesses.
So how exactly does e-invoicing assist economic recovery:
- Suppliers to Australian Government Agencies will be able to access favourable payment terms when they e-invoice a government customer. Enabled Government agencies will pay supplier valid e-invoices on contracts under $1m within 5 business days.
- The Australian e-invoicing network will soon be able to support digital e-invoice response messages. This will allow business to see the processing status of their e-invoices, saving time and more spent on follow up phone calls and emails.
- E-invoices cost less to process than their paper and PDF equivalents – reducing government operating costs by between $8 and $20 per invoice.
If you are a government agency interested in adopting e-invoicing or a supplier to government, Capability Wise can assist you to take the first steps on your e-invoicing journey.
Contact us today for more information: email@example.com