Electronic invoicing is the next frontier for micro-economic reform
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The federal government’s guarantee to pay its vendors who use electronic invoices within five days is a good example of government using its purchasing power to driver broader economic reforms.
The Commonwealth pays an estimated $70 billion each year to suppliers and has committed that all agencies will be able to process e-invoices by July 2022.
The Australian Tax Office, Service Australia, and the departments of Employment, Finance, Treasury, Prime Minister and Cabinet are already able to receive e-invoices.
Internationally, the push to digitise vendor payments has been driven by tax issues, with European jurisdictions seeking to close down major leaks from their VAT systems.