E-Invoicing for GST Reporting in Australia: Towards Mandatory Implementation

Abstract

This article examines the potential implementation of electronic invoicing (e-invoicing) in Australia’s goods and services tax (GST) administration, motivated by a 2024 case in which the Australian Federal Police seized over AUD 500,000 from a Sydney-based entity for issuing false invoices. The fraudulent scheme exploited the input tax credit mechanism by enabling businesses to claim GST credits on invoices that did not correspond to actual tax remittances, thereby undermining the integrity of GST collection. Against this backdrop, the analysis situates the discussion within the broader evolution of digital tax administration, exemplified by the OECD’s Tax Administration 3.0 framework, which advocates for the integration of digital processes to enhance efficiency, compliance and real-time data sharing between taxpayers and tax authorities. The article further contextualises international developments in mandatory e-invoicing, notably within Europe, and considers Australia’s adoption of the Pan European Public Procurement On-Line framework as a precursor to broader e-invoicing initiatives. By critically assessing the regulatory, technical and operational challenges, including issues of interoperability and data verification, the study argues that e-invoicing could serve as a practical tool to mitigate invoicing fraud and enhance GST administration.