Mandatory e-invoicing by 1 July 2021 in Australia
Australia plans to introduce mandatory e-invoicing by 1 July 2021.
E-invoicing will be mandatory for all Commonwealth government agencies. This is part of a new digital business plan to help drive Australia’s economic recovery. Over 1.2 billion invoices are exchanged annually in Australia and the Australian Taxation Office has estimated that this change to e-invoicing will save the economy $28 billion over ten years.
E-invoicing will be used for goods and services up to AUD 1 million. It is expected that by 1 July 2021, more than 80% of invoices will be received electronically
The Australian government is encouraging the use of e-invoicing because of the benefits this has for companies:
- E-invoicing will reduce costs as it will eliminate errors and there will no longer be a need to hold paper documentation or send documents via post;
- Adds security to business transactions; and
- Productivity will be improved and the administrative process will be more efficient.
It has been announced that in New South Wales a mandate has been introduced that will require all NSW government agencies to adopt e-invoicing for goods and services up to $1 million from 1 January 2022.
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