Australia Introduces Electronic Invoicing Through the Digital Business Plan
The Australian government has hatched a plan to support the digitalization of businesses to make its economy more dynamic, competitive and to counteract the economic effects of the COVID pandemic. Part of the Digital Business Plan is to invest in the mass adoption of electronic invoicing.
The Digital Business Plan was announced on September 29th by the Australian Prime Minister and includes 800 Million AUD to increase digital productivity and employment in Australian companies.
The implementation of the electronic invoice is in the scope of the Australian government and is one of the strategic components of the plan for economic recovery. The plan will allocate 3.6 million AUD for the implementation of electronic invoicing before July 1st, 2022.
The Australian government would like to promote the optional use of e-invoicing with its providers and then, at a future date to make it mandatory.
The advantages of e-invoicing can be found online with the objectives of the Digital Business plan for economic recovery. The implementation of this system of invoicing greatly favors businesses by increasing savings by eliminating paper, increasing efficiency through automation and integration of sent and received invoices and the elimination of errors in invoices.
In Australia the reduction of payment and billing times is reinforced by the approval of the Supplier Pay On-Time or Pay Interest Policy, which means that public administrations thar receive electronic invoices through PEPPOL will begin payment to suppliers in five business days. The only pre-requisites are that the contracts covered by this policy are worth a minimum of 1 million AUD.
Electronic Invoicing In Australia
Australia and New Zealand implemented their government e-invoicing projects through the Australia and New Zealand Government Electronic Invoicing Arrangement.
Through this agreement both countries seek to improve productivity and reduce costs through a single interoperable digital market for their suppliers.
The chosen system for the exchange of electronic invoices was the PEPPOL network. Since 2019 private companies and public institutions in Australia and New Zealand have been able to e-invoice through PEPPOL.
PEPPOL allows you to send and receive purchase orders, invoices, dispatch advices, purchase acknowledgements, credit, and debit notes all under a common standard, independent of where your trading partners are located.
Companies communicate through a certified Access Point in each country.
The basic requirements to operate with the electronic invoicing system are:
To use an accredited PEPPOL access point in each country that can convert data messages to the structures and specifications of the PEPPOL network.
To dispose of software capable of transforming electronic invoices from your management system to the PEPPOL BIS Billing 3.0 standard.