In conjunction with this year’s Budget, the Digital Business Plan to Drive Australia’s Economic Recovery was detailed in a press release published on 29 September 2020. The Australian government has allocated almost $800 million in funds to support businesses as they adopt digital technologies to adapt to the post-pandemic world.
“Many businesses moved online quickly when the pandemic hit, undergoing a decade of change in months, finding new customers or new ways of doing things,” said Prime Minister Scott Morrison.
Treasurer Josh Frydenberg echoed the sentiment. “The Governments’ Digital Business plan is targeted at building on this digital transformation of Australian businesses to drive productivity and income growth and create jobs.”
According to the Treasurer, the packaged is estimated to increase Australia’s GDP by $6.4 billion a year by 2024.
One point in the press release stood out to the Exobiz team:
“$3.6 million towards mandating the adoption of electronic invoicing by 1 July 2022 for all Commonwealth government agencies to encourage greater adoption amongst businesses supplying to government and within their supply chains, and to consult on options for mandatory adoption of e-invoicing by businesses.”
The mandate itself wasn’t a surprise to us. We already knew that government agencies and businesses supplying to government agencies were going to begin transitioning to e-invoicing via the Peppol network – the international standard for einvoicing that is in use throughout Europe and Asia and is being adopted in Australia and New Zealand.
The deadline of 1 July 2022 was new to us, but it was the ten words at the very end that stood out the most: “…consult on options for mandatory adoption of e-invoicing by businesses.”
Will e-invoicing become mandatory for businesses across Australia?
At this point, we can only speculate. The government hasn’t given us a straight answer yet, but they have shown that it’s a possibility somewhere down the line.
Let’s suppose that e-invoicing did become mandatory for not only government agencies and related suppliers but all Australian businesses. What would the benefits be?
The benefits of e-invoicing for businesses
1. Reduce processing costs
According to the ATO, it costs businesses about $30 to process a paper invoice. An email PDF invoice isn’t much cheaper at $27. E-invoices are significantly less resource-intensive and cost around $10 to process.
2. Minimise wasted paper
E-invoicing is the most eco-friendly way of sending and receiving invoices. It demands less energy and takes up no physical space.
3. Spend less time fixing errors
Data transferred via e-invoicing is less likely to contain errors than conventional paper and PDF invoices. The common standard for e-invoices makes sure that all important data is submitted accurately prior to sending and the information exchanged is consistent.
Fewer errors mean less time wasted on:
- Making corrections
- Chasing up missing or incomplete information
- Re-keying or scanning invoices
And that means more time to spend running and growing your business.
4. Rest easy with improved security
The e-invoicing network is more secure than email or snail mail. All e-invoices are sent from approved participants, which means there is minimal risk of phishing scams in the form of fake invoice attachments containing nasty malware. Plus, you don’t have to worry about your invoices getting lost or compromised in transit.
Get ahead with e-invoicing
Regardless of whether your business will be mandated to use e-invoicing in the future, you can benefit today.
If you use MYOB Account Right, MYOB Advanced, MYOB Essentials or MYOB Exo, get in touch today. We have developed the first einvoicing integration for these MYOB solutions - see all about the new MYOB-integrated e-invoicing portal here.