E-invoicing allows invoices to flow from system to system through a shared network. It’s fast, connected, and built for a software-driven world. In Australia, the e-invoicing market size grew to 445.2 million US dollars (USD) in 2024 and is projected to reach over 1.8 billion USD by 2033. Australia’s approach to e-invoicing is ambitious and efficient, and the shift from standard invoicing practices to e-invoicing comes with certain expectations for businesses, platforms, and government suppliers.

Below is a clear, detailed guide to e-invoicing in Australia, what’s changing, and how to stay ahead of it.

What’s in this article?

• What is e-invoicing in Australia?
  
• What’s the difference between e-invoicing and digital invoices?
  
• Why is Australia adopting e-invoicing?
  
• How does the Peppol framework function in Australia?
  
• What types of businesses need to comply with e-invoicing rules in Australia?
  
• What is the process for sending and receiving e-invoices?
  
• What does e-invoicing mean for B2B platforms and payment providers?
  
• How Stripe Invoicing can help
  

What is e-invoicing in Australia?

E-invoicing is how businesses exchange invoices without email, PDFs, or paper. Instead of sending a document, a business sends structured data, including invoice details that flow directly from one accounting system to another.

Unlike emailed PDFs, an e-invoice is machine-readable. The receiving system actually understands the details directly. That means no manual data entry and no copy-and-paste errors. You send the invoice from your software and it arrives in your customer’s system, fully formatted and ready to be paid.

In Australia, e‑invoicing means exchanging invoice data directly between systems using the Peppol network—a secure, global framework that connects businesses through a shared standard.

The Australian Taxation Office (ATO) manages Peppol in the country. It sets the rules, accredits providers, and ensures e‑invoicing meets Australia’s goods and services tax (GST) standards. But it doesn’t monitor or store invoices; the data goes straight from seller to buyer.

E‑invoices sent through Peppol must follow a specific format: Peppol International (PINT) A‑NZ, the invoicing standard used across Australia and New Zealand. It includes all the essentials, such as the Australian Business Number (ABN), GST, and payment terms, structured in a way both countries’ systems understand.

What’s the difference between e-invoicing and digital invoices?

A PDF invoice might be digital, but it still needs a human to open it, read it, and enter the data into a system. E‑invoicing skips all of that.

PDFs are documents, whereas e‑invoices are data. A PDF is built for people, since it shows the information but doesn’t do anything with it. An e‑invoice is structured for software. It arrives as machine-readable data and drops straight into the buyer’s system, with no attachments or retyping needed.

Because the e-invoice data format is standardized through the Peppol network, systems can automatically validate, record, and queue e‑invoices for payment. That means a reduced risk of errors, less back-and-forth, and cleaner audit trails.

Why is Australia adopting e-invoicing?

Australian businesses exchange an estimated 1.2 billion invoices every year, with about 90% of these still processed using traditional methods. That’s a staggering amount of retyping, copying and pasting, and chasing down payment errors, all of which cost businesses in administrative overhead.

Moving to e‑invoicing offers serious efficiency gains:

• Cost savings: Full adoption could mean significant savings for the Australian economy, with individual businesses logging annual savings just by reducing admin and error correction.

• Faster payments: E‑invoices reach buyers instantly and show up directly in their accounts payable systems, which cuts down on processing time. On average, e-invoices in Australia are paid 2.5 days faster than traditional invoices.

• Better accuracy and fewer disputes: Because e‑invoices are structured data, there’s less room for typos, mismatched line items, or missing fields.

• Lower fraud risk: E‑invoicing routes data through a verified network. That makes it harder for scammers to hack invoice emails or tamper with bank details; these are problems that plague PDF-based workflows.

• Improved compliance: Peppol e‑invoices include all the fields required by the ATO for a valid tax invoice. They’re easier to archive and audit.

How does the Peppol framework function in Australia?

Peppol is the network that makes e‑invoicing possible. It standardizes how invoice data is formatted and delivered so businesses that use different software can still connect.

Peppol uses a decentralized setup known as the “four-corner model”:

1. The seller creates an invoice in their software.

2. It’s handed off to a certified access point.

3. The invoice travels securely through the Peppol network.

4. It’s delivered to the buyer’s access point and routed into their software.

Peppol makes invoicing interoperable. Once you’re on the network, you can exchange invoices with any other registered business or government agency. No integration work is required.

To send an invoice, you need the recipient’s ABN (or New Zealand Business Number), which acts like a network address. The system uses this to route the invoice automatically, with no need to manage email contacts or double-check delivery.

What types of businesses need to comply with e-invoicing rules in Australia?

As of December 2025, there’s no across-the-board mandate for private businesses to use e‑invoicing in Australia.

If you invoice the Commonwealth government, it’s required to accept e‑invoices via Peppol. Non-corporate Commonwealth entities (NCEs) began receiving them as of July 1, 2022, and all NCEs will be expected to enable automated processing and sending of e-invoices by December 2026. That enables faster payments for suppliers, often within five business days.

For B2B transactions, e‑invoicing is still optional. But the trajectory is clear: the Treasury has proposed a Business e‑Invoicing Right (BER) to gradually make it standard, especially among larger businesses. The advantages of e-invoicing, including faster payments, lower processing costs, and fewer disputes, are driving adaptation. In its 2024–2025 budget, the Australian federal government committed 23.3 million AUD in funding to help small businesses adopt e‑invoicing, a signal that broader adoption is expected.

What is the process for sending and receiving e-invoices?

All you need is software that can connect your finance and accounting stack with the Peppol network.

These are the steps.

Connect to the Peppol network

To send or receive e‑invoices in Australia, you need to be registered on the Peppol network. Businesses typically do so through a certified service provider or a Peppol access point. That’s the channel your invoice travels through securely and directly.

Use the correct format

E‑invoices in Australia must follow the PINT A‑NZ format, which includes all the data required by the ATO. This format became mandatory for B2G e‑invoicing across Australia and New Zealand in November 2024.

Identify your business

Your ABN acts as your e‑invoicing address. When you register, your ABN is linked to your business on the Peppol network so others can send you invoices without needing your email or contact details.

Let software do the difficult work

If your accounting system already supports e‑invoicing, the setup might be as simple as enabling a feature or entering your ABN. The best tools handle formatting, delivery, and validation in the background; all you have to do is click “send.”

Keep records

You’ll still need to store e-invoices for at least five years, just as with any other tax document. Software platforms tend to handle this automatically, but it’s worth checking.

What does e-invoicing mean for B2B platforms and payment providers?

E‑invoicing is becoming an important product feature. Payment providers that handle billing or payments are building Peppol integration into their workflows—some natively, others through app partnerships.

For example, Stripe users can connect apps from the Stripe App Marketplace to generate and send Peppol-compliant e‑invoices directly from their Stripe data. Embedding e‑invoicing into your B2B product helps your customers stay compliant, get paid faster, and future-proof their operations without leaving your system.

How Stripe Invoicing can help

Stripe Invoicing simplifies your accounts receivable (AR) process—from invoice creation to payment collection. Whether you’re managing one-time or recurring billing, Stripe helps businesses get paid faster and streamline operations:

• Automate accounts receivable: Easily create, customize, and send professional invoices—no coding required. Stripe automatically tracks invoice status, sends payment reminders, and processes refunds, helping you stay on top of your cash flow.

• Accelerate cash flow: Reduce days sales outstanding (DSO) and get paid faster with integrated global payments, automatic reminders, and AI-powered dunning tools that help you recover more revenue.

• Enhance the customer experience: Deliver a modern payment experience with support for 25+ languages, 135+ currencies, and 100+ payment methods. Invoices are easy to access and pay through a self-serve customer portal.

• Reduce back-office workload: Generate invoices in minutes and reduce time spent on collections through automatic reminders and a Stripe-hosted invoice payment page.

• Integrate with your existing systems: Stripe Invoicing integrates with popular accounting and enterprise resource planning (ERP) software, helping you keep systems in sync and reduce manual data entry.

Learn more about how Stripe can simplify your accounts receivable process, or get started today.