Australia Budget 2024: Fighting fraud and increasing cash flow through eInvoicing

In 2023, total losses from reported scams reached $2.74 billion, according to the ACCC’s Scamwatch. In response to this, we saw the recent Australian federal government budget announcement include significant funding for digital technology and fraud reduction. eInvoicing is one of the way the government sees businesses, government and the wider economy can benefit from digital technology and achieve a reduction in fraud. Here’s how the budget announcement impacts eInvoicing.

Improved cash flow

The government is looking to fund initiatives that improve payment times to small businesses. They have committed $25.3 million over 4 years to improve cash flow and boost productivity by supporting the Payment Times Reporting Scheme. This adds to the existing policy introduced by the government of 5 days payment terms for all invoices where Peppol compliant eInvoicing capability exists.

Increased eInvoicing adoption

The Australian Taxation Office (ATO) will receive $23.3 million to continue operating the nation’s eInvoicing network. This funding will also be used to increase eInvoicing adoption in the economy to improve cash flow, disrupt payment redirection scams and boost productivity for small businesses.

As part of this funding the government will be:

1. Continuing the operation of the Australia Peppol Authority and the eInvoicing network, including specifications, accreditation, and network governance.
2. Working with DSPs, business, and government to ensure the eInvoicing environment is ready to expand at scale:
   • Increasing federal agency readiness to send and receive eInvoices.
   • Working with industry to resolve implementation issues.
   • Increasing DSP readiness.
3. Targeted activities to increase adoption:
   • Working with DSPs to explore further opportunities to proactively register customers onto the eInvoicing network.
   • Securing more large business champions who will actively promote and onboard business partners.
4. Develop policy:
   • to help embed eInvoicing as a default channel for sending and receiving invoices in government.
   • to increase economy-wide adoption of the technology.
   • To developing eInvoicing branding.

Fighting digital scams

Small and medium businesses are among the potential beneficiaries of a $67.5 million funding package to help fight digital scams. The government will give $37.3 million to develop mandatory industry codes and enforce them to guard against scams through a Scams Code Framework.

Want to learn how eInvoicing help your business against scams and improve efficiency? Get in touch with our team by completing the form below.