Australia Establishes E-Invoicing as Default in Federal Procurement

As part of the 2024–25 Federal Budget, the Australian Government has confirmed that electronic invoicing (e-invoicing) through the Peppol network will become the default method for invoice exchange in government procurement. This marks a significant step forward in Australia’s digital invoicing strategy, building on earlier measures to expand adoption across the public sector.

Scope of Application

The new policy applies directly to Non-Corporate Commonwealth Entities (NCEs). While Corporate Commonwealth Entities (CCEs) and Commonwealth Corporations (CCs) are not formally included, they are strongly encouraged to transition to e-invoicing on a voluntary basis.

The mandate introduces specific compliance milestones for NCEs:

• By 1 July 2026, at least 30% of all invoices received must be via e-invoicing.
• By December 2026, agencies must be able to both automate the processing of e-invoices and issue e-invoices themselves.
• Ongoing: NCEs are required to submit quarterly progress reports to the Australian Peppol Authority (APA).

No Obligation for Suppliers

Unlike some international frameworks, Australia’s initiative does not impose a direct obligation on suppliers. Compliance responsibilities rest exclusively with government entities. Suppliers remain free to choose their preferred invoicing method from a legal perspective.

However, the Australian Taxation Office (ATO) has signaled that NCEs are encouraged to include e-invoicing as a contractual requirement. As a result, suppliers may increasingly find e-invoicing effectively mandatory in practice, even without a statutory obligation.

Market Context

E-invoicing is already well established in Australia: more than 400,000 businesses are registered on the Peppol network, alongside over 300 state and territory agencies and local councils. With this widespread adoption, suppliers can expect growing demand for e-invoicing across multiple levels of government.

There’s more you should know about e-invoicing in Australia – learn more about the new and upcoming regulations.