The Government is highly supportive of eInvoicing. It intends to ramp up eInvoicing adoption with government organisations and businesses.
In February 2024 Minister for Small Business and Manufacturing, Hon Andrew Bayly, announced the Government’s intention to repeal the Business Payments Practices Act 2023.
Instead, the Government intends to pursue non-regulatory measures to improve payment times to small businesses.
As part of this the Government is proposing to:
- Require more government agencies to send and receive eInvoices and
- Introduce a 5 working day payment target for them to pay eInvoices.
- Consult with Crown Entities on extending the current ‘pay 95% of invoices within 10 days’ requirement for Central Government agencies’ to them.Â
- Publish government agency payment times.
Businesses who trade with government organisations can expect eInvoicing to become the norm, and these proposals provide an extra cash flow incentive to send eInvoices to Government.
These proposals will provide further confidence for businesses to adopt eInvoicing and realise the benefits it is already providing many NZ organisations.
The more businesses who send and receive eInvoices, the more they’ll benefit from time-savings, no lost invoices, faster payment, and reduced risk of invoice fraud.
Are you or your clients ready?
If your clients trade with government, these proposed changes mean they will need to know about eInvoicing.
