The NSW and Federal Governments have joined forces to embrace the introduction of e-invoicing for public sector purchasing with a pilot to commence in NSW in December.
NSW Minister for Customer Service, Victor Dominello said e-invoicing for supplies would be a game changer for public sector buyers and private sector suppliers by eliminating paperwork and slashing administrative costs while reducing error and making business easier for small and medium sized enterprises (SMEs).
“We are embracing technology to improve the way suppliers and buyers interact when invoicing for goods and services,” Mr Dominello said.
“This pilot will help ensure we get it right here in NSW before rolling it out further,” he said.
Minister for Finance and Small Business, Damien Tudehope said e-invoicing would reduce payment times and improve business cashflow, which would allow small businesses to spend more time running and growing their businesses.
“According to the Australian Taxation Office (ATO), it is estimated that it costs businesses $30.87 to process a paper invoice, $27.67 a PDF invoice, and only $9.18 to process an e-invoice,” Mr Tudehope said.
“This means it is approximately 70 per cent cheaper to process an e-invoice than traditional paper or PDF invoices, saving businesses time spent manually entering invoices,” he said.
Mr Tudehope said the pilot would initially focus on the IT sector to see how the Government could work with the sector to embrace e-invoicing before expanding it to other sectors.
