Menu
NZ Government stumps up $5.8M to join Australia in drive for e-invoicing

NZ Government stumps up $5.8M to join Australia in drive for e-invoicing

E-invoicing projected to deliver $500 million a year in productivity benefits

Prime Minister's Malcolm Turnbull and Jacinda Ardern meeting in March 2018

Prime Minister's Malcolm Turnbull and Jacinda Ardern meeting in March 2018

Credit: Office of Malcolm Turnbull

The Government is investing $5.8 million in a trans-Tasman drive to push e-invoicing, minister for small business Stuart Nash says.

Nash told Parliament last week the operating funding will support the trans-Tasman project, which aims to drive direct invoicing between a supplier’s and a buyer’s online accounting software, over the next two years.

In March, the Prime Ministers of both New Zealand and Australia committed to advancing work on a common approach as to e-invoicing as part of the trans-Tasman single economic market agenda, he said.

In June, the Australian Government, on the urging of accounting software vendors such as Xero, adopted a framework for digital invoicing.

"The commitment by the Australian Government and our Government confirms that we are on track to fundamentally change the way Government to business and business to business connections are made," he said.

Nash said he had been working with Australian ministers Kelly O’Dwyer, minister for revenue and financial services; Craig Laundy, minister for small and family business, the workplace and deregulation; and the New South Wales minister of finance, Victor Dominello to progress the work.

In addition, Nash said e-invoicing creates economic benefits through faster payments and reduced transaction costs.

"My officials advise me, based on comparable Australian research, that they estimate that a 15 per cent uptake of e-invoicing by New Zealand businesses and Government agencies could save up to $500 million a year," he added.

Meanwhile in Australia, Deloitte Access Economics estimated that digital invoicing could deliver economic benefits of up to A$28 billion over 10 years.

In an April blog post, Xero said e-invoicing formats are readable by both humans and machines, allowing invoices to be automatically entered into accounting software.

"This is a huge timesaver at both ends of the transaction," the provider said. "There is a hitch, though.

"Many e-invoicing solutions require the sender and recipient to use the same invoicing software. For that reason, the private sector has urged the government to develop a single low-cost e-invoicing standard that all businesses can use.

"The governments of Australia and New Zealand recently agreed to do just that. The countries are fine-tuning a prototype developed over the last several years by the Digital Business Council, which is a collaboration between the Australian Taxation Office and businesses such as Xero."

Nash said e-invoicing can deliver significant productivity improvements and savings from fewer invoice errors and less time spent resolving errors.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags governmente-commerceaccounting softwaree-invoicingdigital invoicing

Featured

Slideshows

EDGE 2018: Kiwis kick back with Super Rugby before NZ session

EDGE 2018: Kiwis kick back with Super Rugby before NZ session

New Zealanders kick-started EDGE 2018 with a bout of Super Rugby before a dedicated New Zealand session, in front of more than 50 partners, vendors and distributors on Hamilton Island.​

EDGE 2018: Kiwis kick back with Super Rugby before NZ session
EDGE 2018: Kiwis assess key customer priorities through NZ research

EDGE 2018: Kiwis assess key customer priorities through NZ research

EDGE 2018 kicked off with a dedicated New Zealand track, highlighting the key customer priorities across the local market, in association with Dell EMC. Delivered through EDGE Research - leveraging Kiwi data through Tech Research Asia - more than 50 partners, vendors and distributors combined during an interactive session to assess the changing spending patterns of the end-user and the subsequent impact to the channel.

EDGE 2018: Kiwis assess key customer priorities through NZ research
Show Comments