Pagero was approved by both Australian and New Zealand Peppol authorities on 17 March 2020. Australian, New Zealand and global companies can now make use of Peppol’s eDelivery Network in the Trans-Tasman region.

Many governments around the world now recognise digitalisation as an effective mechanism to increase efficiency in business processes between trading partners. Peppol enables an automated and systematic exchange of e-invoices, purchase orders and other business documents.

Peppol is a framework that standardises interoperability between service providers in terms of communication protocols, message types, data formats and more. As such, the Australian and New Zealand Governments are now opening capabilities for any supplier to connect to an accredited Service Provider of their choice, giving them the ability for instant set up of electronic invoices when trading with government agencies.

Peppol Business Interoperability Specifications (BIS) and the Peppol eDelivery Network receive millions of electronic invoices from businesses (B2G), as well as enabling businesses to invoice each other (B2B).

Peppol in Australia and New Zealand

Australia and New Zealand implemented Peppol in 2019 after much collaboration between the ATO, the MBIE and the e-invoicing industry. With the decision to join OpenPEPPOL, Australia and New Zealand are now taking part in a truly global framework spanning 33 countries worldwide, with registered Service Providers in 26 countries. By having a homogenised e-invoicing system in place, suppliers will garner benefits such as improved cash flow and decreased risk for incurred debt.

Adoption of Peppol is swiftly coming into place. Australian Peppol Authorities have already accredited eleven Service Providers and New Zealand nine, with several more still in the approval process.

Pagero in Australia and New Zealand

Pagero is active in over 120 countries with over 4.5M connected businesses to the Pagero Network. The company, with its cloud-based business network, is dedicated to making the buying and selling process easy. Pagero helps customers connect with any business partner, anywhere in the world, through a single connection to a global, open, cloud-based network.

From their Melbourne-based office, Pagero offers full coverage of Peppol needs for Australia and New Zealand. Services cater to all B2B trading requirements, as well as B2G through Peppol.

“Use of Peppol will help give businesses an advantage over competitors maintaining old practices with paper and PDF. The development of Peppol e-invoicing in Australian and New Zealand will benefit all businesses both domestically and those operating internationally,” comments Pagero Peppol Analyst Trent Targa.

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Five-day payment policy

As incentive for suppliers to adopt Peppol, government agencies will start paying e-invoices within five days or pay interest on any late payments (see Department of Finance’s website for more information). The policy will come into effect starting 1 January 2020 and will apply to e-invoices issued, via Peppol, for contracts under $1M AUD. The ATO states that by this date some of the largest federal government agencies will be onboarded and ready to begin using Peppol.

As the Australian Government is aiming to be the leader and driving force for private businesses to use Peppol, it may continue to introduce incentives for suppliers over the coming months. Businesses, especially SMEs, will see immediate benefits such as getting paid faster from government agencies, reducing day-to-day manual labour, and adding value to the customer experience.

What’s next?

Beyond e-invoicing, Peppol supports further message types, including e-orders. Countries around the world are taking advantage of these capabilities as a logical step to standardise their initial e-invoicing implementations and mandates. Similar measures will likely occur for Australia and New Zealand. More importantly, this is a crucial first step to ignite fully-electronic B2B trading, ultimately improving purchase-to-pay and order-to-cash processes across the entire A/NZ market.

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Get in touch with our Australian team!

Bertrand Gauch – Account Director, Australia & New Zealand
+61 4 87 26 73 72

Pontus Hanson – Business Development Manager, Australia & New Zealand
+61 4 55 59 11 10