As eInvoicing specialists, Capability Wise has been closely watching the progress of the joint Australian and New Zealand Government’s Peppol eInvoicing 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 eInvoicing. Today the Prime Minister and Treasurer jointly announced a mandate for all Commonwealth Government agencies to support eInvoicing 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 mandatory adoption of eInvoicing by all Australian businesses.
So how exactly does eInvoicing assist economic recovery:
- Suppliers to Australian Government Agencies will be able to access favourable payment terms when they eInvoice a government customer. Enabled Government agencies will pay supplier valid eInvoices on contracts under $1m within 5 business days.
- The Australian eInvoicing network will soon be able to support digital eInvoice response messages. This will allow business to see the processing status of their eInvoices, saving time and more spent on follow up phone calls and emails.
- eInvoices 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 eInvoicing or a supplier to government, Capability Wise can assist you to take the first steps on your eInvoicing journey.
Contact us today for more information: einvoicing@capabilitywise.com.au