E-invoice boost for small businesses

In October, the federal government announced all Commonwealth agencies must adopt e-invoicing by July 2021, as part of its COVID-19 recovery plan.

The Department of Treasury has now officially adopted a fully integrated electronic invoicing solution, enabling businesses to be paid within five days.

Council of Small Business Organisations of Australia CEO, Peter Strong, who speaks on behalf of over one million small businesses, said e-invoicing had the potential to make the lives of business owners easier.

“Now, more than ever, Australian small businesses need e-invoicing” he said. “Last year, we were saying e-invoicing was the future. It’s now the present, and it’s great to see the Treasury is truly leading by example. E-invoicing is about less stress for small business folk and more time to run the business or spend time with family.”

Assistant Treasurer Michael Sukkar, who has launched a consultation paper (with submissions closing in January), on the proposed options to accelerate e‑invoicing adoption by businesses, said: “In Australia, over 1.2 billion invoices are exchanged annually with almost 90% of small and medium business still processing paper-based invoices.

“When an e-invoice replaces a paper invoice, the businesses involved could share savings of up to $20 per invoice.

"These reforms have the potential to deliver significant economic benefits for businesses and the wider Australian economy."

December 2020

Date published 10 Dec 2020 | Last updated 10 Dec 2020