Ever since the Australian Government announced they were launching a study into the costs and benefits of e-Invoicing in the 2016 Federal Budget – we’ve been eagerly awaiting to hear how e-Invoicing will be moving forward.
And now – it’s full speed ahead with the government announcing they’re starting to adopt e-Invoicing across all levels of government.
Making the announcement, Minister for Revenue and Financial Services, Kelly O’Dwyer said embracing e-Invoicing is a win-win for governments and businesses.
“e-Invoicing is approximately 70 percent cheaper to process than traditional paper or PDF invoices, according to estimates by Deloitte Access Economics. And it means businesses will be able to spend less time re-entering invoice data for all levels of government and spend more time on growing their businesses.”
– Kelly O’Dwyer
“If standard for e-Invoicing are widely adopted, it will not only be easier for industry to do business with government and other industries, but also cheaper for all parties involved in a transaction.”
– Michael Keenan, Minister Assisting the Prime Minister for Digital Transformation.
In March this year, Prime Ministers Malcolm Turnbull and Jacinda Ardern agreed that Australia and New Zealand would work together on a common approach to e-Invoicing. During this meeting, Ms Ardern estimated that even a 15 percent adoption of e-Invoicing could deliver annual savings of around $3 billion in Australia and $500 million in New Zealand.
In fact, e-Invoicing could provide widespread benefits for the Australian economy, with an estimated $28 billion expected to be delivered into the economy over ten years.
What Does This Mean Moving Forward?
Until recently, it has been hard for businesses to adopt e-Invoicing unless both parties were using the same software. But now with the government working in line with the Digital Business Council’s interoperability framework, it will be much easier for businesses and government sectors to exchange e-Invoices regardless of the software they are using.
It’s a very exciting time to jump on board with e-Invoicing in Australia and New Zealand, given it will be easier for businesses to connect and exchange e-Invoices all while saving time and money from the invoicing process.
Want to know more about e-Invoicing? Find out how e-Invoicing can reduce your late invoice payments here.