Published on the 29/01/2026 | Written by Heather Wright
As eInvoicing gains traction on both sides of Tasman…
Kiwi businesses are beginning to embrace eInvoicing, with more than 52,000 businesses now registered and big business, including Fonterra’s FarmSource andBunnings, helping drive adoption.
As of this month, the incentive to switch has become even stronger with new government procurement rules designed to improve business cash flow coming into force, requiring agencies to pay suppliers more quickly and adopt eInvoicing as standard.
“With these businesses receiving telco eInvoices it will help reduce their administration time.”
More than 100 agencies must now pay 95 percent of eInvoices within five business days, with more than 60 now equipped to send or receive invoices and additional agencies expected to follow. All agencies sending or receiving more than 2,000 domestic invoices a year were required to have eInvoicing systems in place by this month.
The New Zealand government adopted the international Peppol interoperability standard in 2019, moving to Peppol International (PINT) A-NZ specification for electronic invoicing and credit notes late last year. Since early 2022, central government agencies have been required to receive eInvoices via Peppol.
eInvoicing, which enables secure sending and receiving of invoices directly between accounting systems without manual intervention, and eliminates the need for paper or emailed PDF invoices. It has been held up as an option to help Australian and New Zealand businesses improve their cash flow, and processing times, and reduce the risk of errors and invoice scams.
Michael Alp, New Zealand Government Procurement general manager and co-chair of the Australian New Zealand eInvoicing Board, says eInvoicing and prompt payment go hand in hand to deliver benefits for businesses.
Alp says the new rules are designed to improve cashflow to businesses, especially small businesses, as well as setting a high standard for financial efficiency and transparency across the public sector.
Slow-paying government agencies have historically been a friction point for many suppliers, especially SMEs who depend on predictable revenue for payroll, inventory and working capital management. The procurement rules also require agencies to pay non-eInvoices within 10 business days.
Deloitte Access Economics has estimated $4.4 billion in productivity savings over the next decade from widespread adoption of eInvoicing.
Alan Carnaby, Ministry of Business Innovation and Employment (MBIE) director smart data economy, says more than 650,000 eInvoices have been exchanged to date. (A public list of businesses already registered to receive eInvoices is available via MBIE for those looking for trading partners able to use the technology.)
While the policy leans heavily on government behaviour, momentum is also building in large corporate players who have already adopted Peppol eInvoicing at scale, including Xero, Bunnings, OfficeMax, Datacom, NXP, FarmSource and Robert Walters.
From January 2027, mandatory business to government eInvoicing will kick in for large suppliers, deemed to be those with revenue of more than $33 million. The rule only applies for invoices related to domestic trade.
Carnaby says energy and telecommunications providers are expected to join in early 2026, delivering ‘immediate operational benefits for SMEs’.
“The telcos and energy sector ramping up their focus on eInvoicing with billing over the next six months will be great for small and medium enterprises. With these businesses receiving telco eInvoices it will help reduce their administration time with no need for manually entering invoice details into their accounting systems,” he says.
Likewise, New Zealand businesses sending eInvoices to large corporates such as Westpac and Woolworths – who are among the top receivers of eInvoices from New Zealand suppliers – will benefit from no lost invoices and less chasing payment, Carnaby says.
“Ultimately, eInvoicing is pivotal to a better future for small businesses in New Zealand as part of a range of Government digitisation initiatives, such as NZ Business Number, Digital Identity, Credentials and the new prompt payments rules. The more businesses and organisations that use it, the more everyone will benefit, particularly our small businesses.”
Aussie moves
Like New Zealand, Australia is establishing eInvoicing as the default method for exchanging invoice information in government procurement for most Australian government entities. Research has suggested full eInvoicing adoption in Australia could deliver up to AU$22.5 billion in annual benefits.
The Australian Taxation Office says non-corporate Commonwealth Entities (NCEs) – who have been mandated since 2022 to be able to receive eInvoices – have clear adoption deadlines. By July 2026, at least 30 percent of supplier invoices must be exchanged via the Peppol network. By December, agencies will be required to fully automate both the sending and receiving of Peppol eInvoices.
“While the 30 percent usage target may seem ambitious, with over 400,000 businesses now on the Peppol eInvoicing network, some NCEs are closing in on this target already,” the ATO says.
Crucially, eInvoices now officially meet tax invoice requirements even if they don’t explicitly state ‘tax invoice’ or GST invoice’ so long as it complies with the A-NZ Invoice Specification under Peppol and includes the required data fields.
Ultimately, the moves to drive eInvoicing in the public sector is expected to drive wider adoption as suppliers start to expect the same ease and simplicity – and five-day turnarounds – from corporates as they do from government agencies.
