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Move to Australia
The Australian government has recently announced its decision to adopt the Peppol electronic invoicing standard. Peppol enables the digital exchange of invoices between different accounting systems and is widely used in various countries, including Singapore, the US, Canada, and Europe. This move is aimed at replacing traditional paper and PDF invoicing methods, streamlining invoice and payment processing tasks, and resulting in an estimated annual economy-wide saving of $2.8 billion. The adoption of Peppol is also aligned with the government’s Payment Times Reporting initiative, as e-invoicing is expected to expedite payments.
The government has already made it mandatory for public sector procurement to utilize Peppol e-invoicing. Furthermore, there are ongoing considerations to enforce a mandate requiring all businesses in Australia to become Peppol-enabled by 2025, with larger businesses needing to comply by 2023. As an incentive for e-invoicing adoption, the federal government has committed to making payments for e-invoices issued through the Peppol standard within five days. Additionally, some state governments are offering improved payment terms for e-invoices to further encourage their use. This strategic move is expected to enhance efficiency and transparency in financial transactions across the nation.