The Australian Government is expanding its commitment to digital procurement by making Peppol eInvoicing the default method for exchanging invoice information across most federal government entities, a move aimed at boosting productivity, improving cash flow and reducing invoice fraud.
The initiative, announced as part of the government’s broader digital transformation agenda, builds on previous efforts to modernise invoicing systems and increase adoption of the Peppol eInvoicing network across Australia.
Government Pushes eInvoicing Adoption
Under the new approach, Non-corporate Commonwealth Entities (NCEs) will be required to increase their use of eInvoicing, with a target of receiving 30% of all invoices through the Peppol network by July 1, 2026.
The Australian Taxation Office (ATO), acting as the Australian Peppol Authority (APA), will provide guidance and support to government agencies as they transition toward greater eInvoicing adoption. Agencies are also expected to enable automated processing and sending of eInvoices by December 2026 and report progress quarterly.
The policy extends the government’s earlier 2022 mandate requiring NCEs to be capable of receiving eInvoices.
Economic and Security Benefits
The federal government says widespread adoption of eInvoicing will deliver significant benefits for both public and private sector organisations.
Officials believe the technology will improve payment times and cash flow for businesses while helping to combat payment redirection scams that have become increasingly common through traditional email-based invoicing systems.
By automating invoice exchange and processing, the government also expects to reduce administrative burdens and increase productivity across the economy.
Strong Growth Across Government
More than 300 state and territory government organisations and local councils have already joined the Peppol network, according to the ATO.
Many government agencies across New South Wales, South Australia, the Australian Capital Territory and Queensland can already receive eInvoices, while several jurisdictions are expanding their capabilities to include both receiving and sending digital invoices.
The Western Australian Government is pursuing a broader implementation program, while Victoria and Tasmania have also committed to expanding eInvoicing across government operations.
Suppliers Encouraged to Transition
Government suppliers are being encouraged to adopt eInvoicing to support the transition.
The ATO noted that more than 400,000 Australian businesses are already connected to the Peppol network, creating opportunities for government agencies to accelerate uptake by prioritising high-volume suppliers and incorporating eInvoicing requirements into new contracts and contract renewals.
Officials are also urging agencies to raise awareness internally and ensure staff involved in procurement understand how eInvoicing differs from traditional email-based invoice processing.
Automation Seen as Key Next Step
While many government entities can already receive eInvoices, officials say automation will be critical to unlocking the full benefits of the system.
The ATO has identified several implementation models ranging from standalone access points connected to enterprise resource planning (ERP) systems through to fully integrated solutions embedded within existing finance platforms.
Government agencies upgrading their accounts payable systems are being encouraged to incorporate automated eInvoice processing as part of broader digital transformation projects.
National Momentum Continues
The latest measures signal a significant step in Australia’s transition toward digital invoicing and procurement.
With growing participation from federal, state and local governments, and hundreds of thousands of businesses already connected to the Peppol network, officials believe Australia is positioned to accelerate adoption of eInvoicing as a standard method of conducting business across the economy.
The Australian Peppol Authority said it will continue working with government entities and suppliers to support the transition and achieve the government’s adoption targets over the coming year.