Peppol: the eInvoicing framework for Australia & New Zealand

Both Australia and New Zealand have adopted the Peppol framework, short for Pan-European Public Procurement Online.

Peppol is an international standard that facilitates the secure and efficient exchange of eInvoices. Both Australia and New Zealand have adopted Peppol to standardise eInvoicing and ensure seamless interoperability between different business systems.

The Peppol framework offers a four-corner model, meaning invoices do not require direct integration between buyers and suppliers but instead travel through accredited Peppol Access Points. This approach ensures:

• Consistency: Standard formatting for all eInvoices.
• Security: Verified transactions reduce invoice fraud.
• Scalability: Businesses only need to connect once to transact with any Peppol-registered entity.

By leveraging Peppol, businesses can ensure compliance while improving operational efficiency.

Source: Australian Taxation Office (ATO).

E-invoicing requirements for Government agencies in Australia and New Zealand.

What are the eInvoicing requirements for Government Agencies in Australia?

In Australia, the ATO is driving e-invoicing adoption for Non Corporate Commonwealth Entities (NCE’s).  Requirements for NCE’s are:

• From 1 July 2026 - all non-corporate Commonwealth entities (NCEs) must be able to receive at least 30% of their invoices through e-invoicing using the Peppol network.
• By 31 December 2026 - NCEs must also have the capability to send and automatically process e-invoices.
• Provide reports on progress of volumes and capability quarterly to the ATO.

What are the eInvoicing requirements for Government Agencies in New Zealand?

In New Zealand, the government is driving eInvoicing adoption with clear mandates and targets for Government Agencies:

• From 1 January 2025 - Agencies must pay 90% of domestic trade invoices within 10 business days.
• From 1 January 2026
  • Increase to 95% of invoices paid within 10 days.
  • Agencies sending/receiving over 2,000 invoices annually must implement eInvoicing capability.
  • 95% of eInvoices must be paid within 5 business days.
  • Agencies must report payment times to MBIE.
• From 1 January 2027 - Large suppliers (annual revenue over NZD 33 million) must send eInvoices when contracting with government agencies.

These changes align with the Government’s Digital Economy Strategy and aim to reduce manual processing, improve accuracy, and accelerate payment times.   More information can be found here.

The Ministry of Business, Innovation, and Employment (MBIE) is leading eInvoicing initiatives, ensuring that businesses and government entities benefit from faster payments and reduced processing costs.

Why eInvoicing matters for Australian & NZ businesses

eInvoicing is more than just a compliance requirement - it’s a crucial step in digital transformation for governments, councils and businesses across Australia and New Zealand.

Ed Chung, CEO of TechnologyOne, previously described eInvoicing as a game-changer, saying it has the potential to ‘grow exponentially’ once it has a sufficiently wide user base.

When eInvoicing was first implemented back in 2021, 89% of small and medium businesses processed invoices manually via paper or PDFs, and there were about 1.2 billion invoices exchanged in Australia alone annually.

eInvoicing is already proving to be a powerful tool for modernising the business ecosystem, and as more businesses and governments around the world make the switch, those without will risk being left behind.

Is eInvoicing mandatory?

While not yet compulsory for all businesses, eInvoicing is becoming increasingly prevalent. Organisations that transact with government agencies will benefit from early adoption, as government entities are required to pay eInvoices within five days.

Businesses that proactively implement eInvoicing will be better positioned to meet future regulatory requirements and avoid potential disruptions as eInvoicing becomes the new standard.

What are the benefits of eInvoicing?

The shift to eInvoicing is not just about compliance—it delivers tangible business benefits, such as:

• Cost savings: According to the ATO, processing paper and PDF invoices can cost between $27 and $30 per invoice, while eInvoicing reduces this to less than $10 per invoice. By removing manual handling, businesses can save thousands annually.
• Faster payments: Government agencies using eInvoicing commit to paying invoices within five days, drastically improving cash flow for businesses, particularly small enterprises.
• Error reduction: Automating invoice processing eliminates manual data entry errors, reducing disputes, delays, and incorrect payments.
• Stronger security: eInvoicing reduces the risk of invoice fraud and email-based phishing scams by ensuring transactions occur via secure, verified channels.
• Environmental benefits: Eliminating paper invoices contributes to sustainability goals by reducing businesses' carbon footprint and waste.

How does TechnologyOne support eInvoicing?

TechnologyOne’s eInvoicing module, a part of our Financials product, is designed to help businesses and government agencies seamlessly transition to digital invoicing. With Financials, you can start sending invoices to your customers, and receiving invoices from our suppliers, directly with their accounting systems.

Upgrade to TechnologyOne’s CiA  if you haven’t already started using eInvoicing.

You can also watch our webinar, ‘See eInvoicing in action’, to learn more about how you can automatically receive and process eInvoices with TechnologyOne.