Supplying government? What Peppol e-invoicing means for you

E-invoicing through the Peppol network is becoming the default way to invoice the Australian Government. There is a lot of confusion about who has to do what, so here is a plain summary.

What the Commonwealth has committed to

  • Non-corporate Commonwealth entities (most departments and agencies) were asked to lift e-invoicing to 30% of all invoices received by 1 July 2026, working with their suppliers.
  • By December 2026 they must be able to automatically process received e-invoices and send e-invoices.
  • The stated goal is to make e-invoicing the default for government procurement.

Is it compulsory for suppliers?

Not by law. The targets apply to agencies, not suppliers. In practice, agencies are being encouraged to build e-invoicing into contracts, so an individual contract may require it — and suppliers who can e-invoice are easier to deal with. NSW agencies have been required to accept e-invoices since 2022, but NSW also does not mandate it for suppliers.

Faster payment is the real benefit

  • Under the Commonwealth’s Supplier Pay On-Time or Pay Interest Policy, e-invoices are paid within 5 calendar days (where both parties can e-invoice), compared with 20 days for other invoices.
  • NSW pays registered suppliers within 5 business days for e-invoices up to $1 million.

How to get on Peppol

  • The ATO is Australia’s Peppol Authority. You connect through an ATO-accredited access point provider — many accounting and ERP systems partner with one.
  • Your Peppol ID is based on your ABN.
  • Invoices must use the PINT A-NZ standard, which replaced the older A-NZ BIS format in November 2024.
  • An e-invoice with all the mandatory data is a valid tax invoice for GST purposes.

What about business-to-business?

There is currently no B2B e-invoicing mandate in Australia. Adoption between businesses is voluntary — but the same network, IDs and standards apply, so once you are connected you can e-invoice any Peppol-enabled customer.

Need help? Core365 InvoiceLink sends and receives PINT A-NZ e-invoices directly from Business Central, with ABN validation and a full audit trail. Book a free strategy call or email info@core365.com.au.

Sources

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