Australia Takes First Steps Toward National B2B E-Invoicing Mandate

In addition to mandating e-invoicing for Commonwealth government agencies by 2022, Australia is now exploring options to introduce mandatory e-invoicing in the private sector.

Amid ongoing economic challenges, many Australian businesses are seeking greater automation to reduce costs and improve cash flow. Expanding e-invoicing into B2B transactions is seen as a logical next step within the country’s broader digital recovery strategy.

Mandatory E-Invoicing by 1 July 2022 for Government

The Australian Government has already issued an e-invoicing mandate for Federal Agencies and Departments, with activation set for 1 July 2022. Discussions are also underway with State Governments and territories to align mandates across all levels of government.

The anticipated B2B framework is expected to follow a similar timeline, supporting broader adoption across supply chains.

Consultation on Mandatory B2B E-Invoicing

The Australian Treasury has released a consultation paper outlining three possible approaches to accelerating e-invoicing adoption:

Option 1: A phased requirement for all businesses to adopt Peppol e-invoicing, without banning paper invoices.

Option 2: A mandate applying only to large businesses.

Option 3: Non-regulatory measures, such as a voluntary e-invoicing code and promotional initiatives to increase Peppol adoption.

Stakeholders were invited to provide feedback on the proposed options, with submissions accepted until 18 January 2021.

A Step Toward Broader Digitalization

These developments signal that Australia is moving beyond public-sector adoption and considering a structured national B2B e-invoicing mandate. While no final model has been confirmed, the consultation marks a significant step toward wider digital transformation of invoice exchange across the economy.