Government partnership to guide invoicing initiative

In releasing the consultation paper, both governments are seeking public views to help establish an independent, fair and equitable governance structure for the day-to-day operation of e-invoicing in both Australia and New Zealand.

It notes that operational governance will include the ongoing management of the Trans-Tasman e-Invoicing Interoperability Framework, as well as work to continue to drive adoption of e-Invoicing.

Assistant Treasurer Stuart Robert said e-invoicing helps businesses save time and money by allowing the direct exchange of invoices between suppliers' and buyers' financial systems.

"E-invoicing is an important tool to modernise the way we do business, and increase efficiency and productivity,” Mr Robert said.

“We have a clear opportunity to realise the benefits of going digital, and that's why we are committed to supporting this initiative.”

The Australian Small Business and Family Enterprise Ombudsman, Kate Carnell, supported the release of the consultation, saying it makes small businesses more productive by streamlining payments and improving cash flow.

“Around 1.2 billion invoices are exchanged in Australia every year; the potential benefit to the Australian economy in switching to e-invoicing is $28 billion over 10 years,” Ms Carnell said.

“The benefits of e-invoicing are significant for small businesses – it means quicker payments and reduced administration costs.

“Research shows it costs $30.87 to process a paper invoice, $27.97 per PDF invoice and only $9.18 per e-invoice; a significant saving.”

Ms Carnell also said e-invoicing helps to eliminate processing errors as your core business details are stored online and can include a direct link to your bank account for payments.

“Research reports around 20 per cent of invoices today are sent to the wrong person and 30 per cent contain incorrect information – delaying payment,” she said.

“E-invoicing also reduces the time from creating an invoice to getting paid as the sending and payment is automatic, which increases business productivity.

“We will continue to advocate digitalisation, and its many applications, so small businesses can realise the benefits of participating competitively in the digital economy.”