There’s a quiet revolution happening in Australian business finance, and it’s picking up incredible speed. If you thought e-invoicing was just a buzzword for big corporations, think again. In 2022, only 16,000 Australian businesses were registered on the Peppol e-invoicing network. As of January 2025, that number has exploded to over 410,000. That’s a 2,463% increase in just three years.
This isn’t just a minor tech upgrade. It’s a fundamental shift in how money moves, driven by massive cost savings, faster payments, and an urgent need to combat crippling invoice scams. So, how popular is Peppol e-invoicing in Australia? It’s rapidly becoming the new standard. Here’s why your business can’t afford to ignore it.
What Is Peppol, and Why Is It Better Than Email?
We all send invoices. For most, that means attaching a PDF to an email and hitting send. But that process is slow, insecure, and shockingly expensive. Peppol (Pan-European Public Procurement Online) is not an app or a piece of software. It’s a highly secure, global network built specifically for exchanging business documents.
Think of it this way:
- Emailing a PDF is like sending a postcard. Anyone can intercept it, read it, or even alter it (like changing your bank details!) before it reaches its destination.
- Peppol E-Invoicing is like using a secure diplomatic pouch. The invoice is sent as structured data (not a file) through an encrypted, closed network. It goes directly from your accounting system into your customer’s, with no chance for human error or criminal interception.
This network uses a “four-corner model.”
- You send the invoice from your system.
- Your Peppol Service Provider (your “Access Point”) securely receives it.
- They send it to your customer’s Access Point.
- Your customer receives the invoice data directly in their accounting system.
The $22.5 Billion Reason: The Hard Numbers
The switch to Peppol isn’t just for security; the business case is overwhelming. The Australian government estimates that full adoption could add $22.5 billion to the economy annually. For your business, the savings are more immediate.
- Slash Processing Costs by 70%: The ATO calculates that processing a paper invoice costs an average of $30.87. A PDF invoice isn’t much better at $27.67 (thanks to all the manual data entry). An e-invoice on the Peppol network? Just $9.18. For a business sending 150 invoices a month, that’s over $3,000 in savings every month.
- Get Paid 2.5 Days Faster: Because e-invoices arrive instantly and are pre-validated, they skip the “lost in the inbox” black hole. On average, Australian businesses using e-invoicing get paid 2.5 days sooner, a 15% improvement that’s critical for cash flow.
- Save 10+ Hours a Week: Forget manual data entry. Research from MYOB found that over 60% of small businesses believe they could save up to 10 hours every week by automating their invoicing—that’s 260 hours a year back to focus on growing your business.
The $152 Million Scam You Can Finally Avoid
Here’s the most urgent reason to switch.
In 2024, Australian businesses lost a staggering $152.6 million to payment redirection scams. This is where a fraudster intercepts a PDF invoice, changes the BSB and account number, and resends it to your customer. The customer pays the scammer, and you’re left empty-handed.
Peppol e-invoicing makes this scam virtually impossible.
Because the invoice is encrypted data sent directly from system to system, it can’t be intercepted or altered. The bank details you have in your system are the only details your customer’s system will receive. It’s one of the single best security upgrades a modern business can make.
Is E-Invoicing in Australia Mandatory?
This is the most common question, and the answer is “yes and no.”
- For Government: Yes. As of July 1, 2022, all Commonwealth government agencies must be able to receive Peppol e-invoices. The government is leading by example and has mandated adoption targets for all its entities.
- For Businesses (B2B): No. The government has not (yet) mandated B2B e-invoicing. The current strategy is to encourage voluntary adoption by highlighting the massive cost, efficiency, and security benefits.
However, the “network effect” is in full swing. With the government and over 410,000
How Do I Get Started? It’s Easier Than You Think
You don’t need to replace your existing accounting software (like Xero, MYOB, or QuickBooks). You just need to connect it to the network.
1. Find a Peppol Service Provider in Australia:
You connect to the network via an accredited Peppol Service Provider. These are ATO-approved companies that act as your secure “Access Point.” Many accounting software providers are already accredited or have seamless integrations.
2. Get Your Peppol ID:
Your provider will register you and give you a unique Peppol ID, which is typically just your ABN.
3. Check the “Phonebook”:
You can use the peppol directory australia to see which of your customers and suppliers are already on the network (using their ABN). This directory is the central “phonebook” that lets systems find each other.
4. Enjoy Seamless Invoice Sending:
Once you’re connected, your workflow barely changes. You create an invoice in your software as usual, but instead of “Email,” you’ll see a “Send as e-invoice” button. That’s it. Your Peppol Service Provider handles all the secure, technical work in the background.
Don’t Get Left Behind
E-invoicing in Australia has passed the tipping point. It’s no longer a “future” technology; it’s a mainstream tool being adopted at an exponential rate.
While 90% of invoices are still processed manually, this just represents a massive, untapped opportunity for businesses willing to modernise. The benefits are clear: you’ll cut costs, get paid faster, and protect your business from the most
FAQ’s
1. What happens if I send an invoice to a customer who isn’t on the Peppol network?
This recipient is not enabled to receive Peppol e-invoices
Your accounting software is smart enough to check first. When you try to send, it will check the Peppol directory (the network’s phonebook) for your customer’s ABN.
- If they are registered, it goes via Peppol.
- If they are not registered, your software will simply tell you it can’t be sent as an e-invoice, and you can send it as a regular PDF email, just as you do today.
You can (and will) use both methods—Peppol for registered partners, and email for everyone else.
2. How do I find a “Peppol Service Provider”?
You may not need to. As mentioned, your accounting software provider (like Xero) often is your Peppol Service Provider.
If you have a custom or older system, the ATO maintains an official register of accredited Peppol Service Providers in Australia. These are the only companies certified to connect you to the secure network.
3. Is it really that much more secure than email?
Yes, and the difference is night and day.
- Email (PDFs): Unsecure and easy to intercept. Scammers can stop your email, download the PDF, change your bank details, and forward it to your customer. This is the $152 million “payment redirection scam.”
- Peppol Network: A closed, encrypted network. Only certified providers can access it. Your invoice data is sent in a way that cannot be intercepted or tampered with. It’s one of the most effective ways to stop invoice fraud cold.
The takeaway: The Peppol network is 410,000 businesses strong and growing. The question is no longer if your business should join, but when.