E-Invoicing in Australia
Updated on May 15th, 2024
Australia has adopted the Peppol framework as a common standard and network for e-invoicing. Since July 2022, e-invoicing is mandatory for B2G transactions.
Australia and New Zealand have worked conjunctively to create the “Australia and New Zealand Government Electronic Invoicing Arrangement”. Since July 2022, e-invoicing is mandatory for all Australian Governments agencies with Peppol as the chosen framework.
In May 2024, Australian government allocated $23.3 million for overseeing and operating the secure e-invoicng network over four years. This decision is a part of the governmental strategy to combat scams and strengthen digital infrastructure.
For now, B2B e-invoicing is still being discussed and is broadly encouraged by the government as more than 1.2 billon invoices are exchanged in Australia every year.
The Australian Peppol Authority
The ATO is the Australian Peppol Authority and is defining what Peppol standard should be used for the GST (Good and Services Tax) tax invoices. It is also in charge of selecting and approving Peppol access points for Australia. Finally, they work with providers and businesses to ensure the framework is well implemented and is also suitable to the needs of everyone.
As of today, the standard used is the PEPPOL BIS Billing 3.0., and the ATO has accredited more than 40 Peppol Access point.
How to do e-invoicing in Australia
Companies have to register to the Peppol network in order to do e-invoicing. They have different options; going through their existing e-invoicing software, choosing a new service provider or find an online solution.
Good news is SPS Commerce is already a trusted Peppol access point for Australia and New Zealand!
Bear in mind that an e-invoice is just like a paper invoice. It has to contain a number of information, such as the ABN (Australian Business Number), the date and the total amount. The only difference lies in the way the invoice is transmitted, in this case through the secured network Peppol.
For now, e-invoices should be archived for 5 years. Again, electronic invoices answer to the same rules as paper invoices, meaning they have to follow the “Five rules for record keeping” like storing the records in a way that protects the information from being changed.
States and Territories Specificities
Since July 1st 2022, B2G transactions are concerned by the e-invoicing mandate. Let’s dive into the specificities of each state.
New South Wales was one a pioneer in Australia to implement e-invoicing.
South Australia mainly receives e-invoices, less than 10 agencies are not ready yet.
Western Australia had a pilot program running since 2023 in order to be e-invoicing ready in Q4 2023.
Queensland was switching to e-invoicing in 2022/2023.
Australian Capital Territory was switching to e-invoicing in 2022/2023.
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