The Australian Government is establishing electronic invoicing (e-invoicing) via the Peppol network as the default method for invoice exchange in government procurement. This initiative, announced as part of Budget 2024-25, represents a significant expansion of the country’s digital invoicing adoption strategy.
Key Requirements
The mandate currently applies to Non-Corporate Commonwealth Entities (NCEs). Corporate Commonwealth Entities (CCEs) and Commonwealth Corporations (CCs) are not yet included but are encouraged to adopt e-invoicing voluntarily.
Building on the 2022 mandate requiring NCEs to receive e-invoices, the new policy introduces specific targets:
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By 1 July 2026: Achieve 30% of all received invoices via e-invoicing
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By December 2026: Enable automated processing and sending of e-invoices
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Ongoing: Submit quarterly progress reports to the Australian Peppol Authority (APA)
No Direct Mandate for Suppliers
Importantly, the Australian Government has not imposed a legal requirement for suppliers to use e-invoicing. The compliance obligations fall exclusively on government entities (NCEs), which must meet the specified targets and enable e-invoicing capabilities. Suppliers remain free to choose their invoicing method from a regulatory standpoint. However, businesses should have in mind that ATO encourages the government entities to include e-invoicing as a pre-requisite in contracts.
Market Context
Over 400,000 Australian businesses are currently registered on the Peppol network, with more than 300 state and territory government organisations and local councils already participating. This broad adoption suggests suppliers will increasingly encounter e-invoicing preferences across all levels of government, even without mandatory requirements.
For future updates on Australia and similar developments in other countries, follow our Regulatory Analysis page.
