Home Government Tech Policy Trial completes first delivery of e-invoice by government

Trial completes first delivery of e-invoice by government

Cloud services provider MessageXchange has successfully demonstrated end-to-end transactions between the Australian Government and a private sector recipient, using the new Australian e-invoicing standard.

The test involved delivery of an e-invoice to a government grant recipient which MessageXchange says was the first of its kind to be sent by an Australian Government department.

Department of Industry, Innovation and Science’s chief operating officer, Michael Schwager says, “e-invoicing will deliver benefits to the department’s suppliers, including grant recipients, but it will also allow the department to streamline its internal accounts payable processes. These in turn will generate efficiencies and improve the timeliness of payments to suppliers".

John Delaney, co-founder and managing director of MessageXchange, says e-invoicing offers significant processing and payment time efficiencies over scanned or emailed invoices.

“Many of Australia’s largest and most efficient supply chains already use MessageXchange, which currently processes more than 100 million transactions a year.

“We have demonstrated that both our MessageXchange and Colladium cloud services are ready to securely handle e-invoices using the new Australian standard. Most importantly, we have demonstrated that both government agencies and Industry will be able to very inexpensively and rapidly reap the benefits of e-invoicing.”

Until recently in Australia, e-invoicing and Electronic Data Interchange technologies have been predominantly used in the supply chains of large businesses, with varying standards presenting barriers for small businesses, but according to MessageXchange industry standardisation of e-invoicing is likely to increase adoption, while also reducing costs and complexity.

The new Australian e-invoicing standard has been created through collaboration between government and industry, led by the Digital Business Council which was founded in 2015 to develop, deploy and facilitate the adoption of digital standards in Australia. It has been estimated that widespread adoption of e-invoicing could save Australian businesses between $7 billion and $10 billion annually.

The collaboration between the private sector and the Australian Government achieved through the Council has led to the establishment of regulation, industry standardisation and mechanisms that, it is claimed, instill trust in the e-invoicing framework. The new framework is designed to reduce barriers to entry and provide a level playing field for all Australian businesses that wish to adopt e-invoicing.

Members of the Council include the Australian Taxation Office, Australian Government Department of Finance, NSW Government Department of Finance, and the Australian Local Government Association (ALGA), and industry bodies such as the Australian Business Software Industry Association (ABSIA), the Australian Information Industry Association (AIIA), Chartered Accounts (CA ANZ), and the Chartered Institute of Procurement and Supply (CIPS).


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Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).