What the Peppol eInvoicing mandate means for Commonwealth agencies and suppliers

The Australian Government has made its intentions clear: eInvoicing is no longer a future goal — it’s a current mandate. From July 2026, Commonwealth entities must ensure that at least 30% of their supplier invoices are eInvoices, with full automation expected by the end of that year.

For suppliers, partners, and public sector entities — the message is simple: the time to act is now.

What’s changing?

The Australian Peppol Authority (run by the Australian Taxation Office) has confirmed a significant shift in federal policy. All non-corporate Commonwealth entities (NCEs) — think departments like Health, Defence, Education, and Home Affairs — must now:

• Ensure at least 30% of invoices from suppliers are received as Peppol eInvoices by 1 July 2026
• Be able to fully automate the sending and receiving of eInvoices by December 2026
• Report progress quarterly to the ATO and APA

The Treasury and Department of Finance are also exploring ways to bake Peppol into:

• The Commonwealth contract framework
• The Pay On Time or Pay Interest Policy (RMG 417)
• Panel supplier arrangements

What this means for government suppliers

If you supply goods or services to the Commonwealth, your invoices will need to be Peppol-compliant. PDF and paper invoices won’t cut it — and emails don’t meet the standard.

Getting ahead of this now means less friction in your payment process, faster invoice cycles, and fewer compliance headaches in future tenders.

What this means for government departments and agencies

If you’re in procurement, finance, or IT, you’ll need to move beyond pilots and trials. A Peppol Access Point — like Payreq — can help you:

• Receive eInvoices directly into your systems
• Connect securely with your suppliers
• Report and track progress toward your 2026 goals

And if you’re already working with panel suppliers, now’s the time to ask: are they Peppol-ready?

What’s next?

This shift is about more than invoices — it’s about building a more efficient, connected, and digital public sector.

Whether you’re an agency, a supplier, or a tech partner — we can help you get there. As an accredited Peppol Access Point, Payreq helps organisations send, receive, and store eInvoices securely and easily, without overhauling existing systems.

Find out more about Peppol and Payreq’s eInvoicing solution.