E-invoicing in Australia

For business-to-government (B2G) transactions, the Australian government has mandated that all Commonwealth agencies must be capable of receiving Peppol e-invoices. Under the government’s Supplier Pay On-Time or Pay Interest Policy, agencies must pay e-invoices within five days of receipt.

Suppliers to government agencies must use e-invoicing-capable software that can connect to the Peppol network. Businesses must obtain an Australian Business Number (ABN), which acts as the address for e-invoicing.

E-invoicing is not currently mandatory in Australia for business-to-business (B2B) transactions. However, the Australian government encourages businesses to adopt e-invoicing and provides resources to assist businesses in transitioning to e-invoicing.

E-invoicing is not currently mandatory in Australia for business-to-consumer (B2C) transactions. However, businesses are free to adopt e-invoicing on a voluntary basis.

There are currently no live reporting requirements in Australia. However, given the Australian government’s encouragement of e-invoicing adoption, businesses should stay informed about potential future developments in this area.

There are no specific penalties for businesses that do not adopt e-invoicing. However, failing to comply with mandated requirements, such as for B2G transactions, may result in delayed payments or challenges in securing government contracts.