Electronic invoicing in Australia
Australia has implemented e-invoicing as part of its ongoing transition toward a more efficient and transparent digital ecosystem. Despite not being mandatory for all businesses, the Australian government is encouraging its adoption to improve commercial interoperability and reduce administrative costs, particularly in business-to-government relationships.
Characteristics of Electronic Invoicing in Australia
Australia launched its e-invoicing project in tandem with New Zealand in 2018 through the Australia and New Zealand Government Electronic Invoicing Arrangement. The organism responsible for promoting the system in the country is the Australian Peppol Authority (ATO).
Australia has opted for an interoperable Peppol model for widespread e-invoicing adoption across the country.
In this four-corner model, a Peppol Access Point is required to communicate and transform messages according to Peppol specifications. The "four corners" represent the sender, their Access Point, the receiver’s Access Point, and the final receiver. This approach ensures that any entity registered in the Peppol network can exchange electronic documents with any other, regardless of the platforms or systems used, promoting global standards and eliminating technological barriers.
EDICOM is an Access Point accredited by the Australian Taxation Office (ATO) and the Ministry of Business, Innovation, and Employment (MBIE) in New Zealand.
By implementing the international Peppol standard, the country aims to simplify transactions, reduce costs, and minimize the environmental impact associated with paper use. This system benefits not only local businesses but also strengthens interoperability with international markets.
Mandatory Use
E-invoicing is not mandatory for all businesses in Australia, but it is required for B2G (Business to Government) transactions under the "e-Invoicing first" policy. Since July 1, 2022, all federal government agencies must be enabled to receive e-invoices.
For B2B transactions, its use is voluntary, but adoption is expected to grow due to economic benefits and government incentive policies.
Invoice Format
Australia uses the Peppol PINT A-NZ format, an international standard that ensures interoperability between different platforms and countries.
The use of PINT A-NZ will gradually replace ANZ Peppol BIS 3.0. As of May 15, 2025, all users must be able to exchange PINT A-NZ. It will become the mandatory format for sending and receiving invoices and credit notes.
Electronic Signature
An electronic signature is not mandatory for all e-invoices, as the Peppol e-Invoicing system uses secure mechanisms for transaction authentication and validation.
However, businesses may choose to use electronic signatures if they want to add an extra layer of security.
Invoice Archiving
Australian legislation requires that invoices, including e-invoices, be stored for a minimum of 5 years.
Storage can be in digital format, as long as it is accessible and auditable in the event of an inspection by the Australian Taxation Office (ATO).
e-Invoicing Issuance in Australia
Businesses must ensure that their invoicing system is configured to comply with the Peppol standard. This includes integrating the required tax data, such as the sender’s ABN (Australian Business Number).
- Invoice generation: The invoice is generated in XML format following the Peppol standard. It includes detailed information regarding the transaction, such as the sender and receiver’s details, description of goods or services, amounts, and goods and services tax (GST).
- Transmission: The invoice is sent through the Peppol network using a certified Access Point provider. This system ensures secure and direct transmission to the receiver.
- Reception and processing: The receiver gets the invoice in their system via the same Peppol network. This eliminates the need for manual data entry, reducing errors and optimizing the process.
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