How New e-Invoicing Rules Will Impact Government Agencies and Businesses by 2026
New Zealand is set to transform its government procurement landscape with a series of expanded e-Invoicing requirements and faster payment timelines designed to benefit the business community. Announced on November 5, 2024, by Economic Development Minister Hon Melissa Lee and Small Business Minister Hon Andrew Bayly, this reform marks a strategic update to Rule 51 in the Government Procurement Rules, paving the way for a digitally-integrated government procurement process.
Broader Mandate and Accelerated Payment Requirements
The update mandates that by January 1, 2026, a larger network of government agencies—including ACC, Waka Kotahi, Health NZ, and NZ Police—must have the capability to issue and receive e-Invoices, as per the Peppol PINT standard established in cooperation with Australia. Additionally, these agencies will be required to pay 95% of domestic trade e-Invoices within just five business days, enhancing cash flow predictability for New Zealand businesses, particularly SMEs.
The procurement rule update will roll out in two phases:
- Phase One: Beginning January 1, 2025, approximately 135 government agencies will aim to settle 90% of all domestic trade invoices within 10 business days.
- Phase Two: By January 1, 2026, these agencies will escalate their commitment to settle 95% of invoices within a five-day window.
This reform complements existing commitments by New Zealand’s public sector to streamline payment processes, reinforcing a more consistent, transparent framework for financial transactions across government entities.
Supporting Broader Adoption through Business Consultations
As part of this transition, New Zealand’s government will consult with businesses on the potential of requiring specific government suppliers to adopt e-Invoicing as part of procurement standards. These consultations, expected to conclude by February 2025, could further shape the adoption framework and encourage greater e-Invoicing uptake among businesses working with the public sector.
To support this shift, the Ministry of Business, Innovation, and Employment (MBIE) has provided a directory of eligible public agencies, enabling businesses to better align their invoicing practices with the updated requirements.
Driving Digital Transformation and Economic Benefits
This broad commitment to e-Invoicing and rapid settlement aligns with New Zealand’s goal of fostering a digitally advanced and transparent government. By prioritizing efficient payment processes, New Zealand aims to create tangible economic benefits for the business sector and lay the groundwork for a streamlined, technologically-forward government procurement process.
