In late 2024 the Government introduced requirements around prompt payments and eInvoicing into the Government Procurement Rules.  They require government agencies sending or receiving more than 2,000 invoices annually to adopt eInvoicing and pay eInvoices within 5 business days by January 2026.

Some further changes have been made that aim to improve payment times and ramp up eInvoicing adoption. It means the government will continue to lead by example in supporting improved cashflow and fairer payment practices for suppliers and subcontractors.

Under the Rules government agencies will be required to:

• ensure suppliers pay subcontractors on government contracts on terms no less favourable than those they receive from government.
• from 1 January 2027, ensure large suppliers send eInvoices. Large suppliers are defined as entities (including subsidiaries) with total annual revenue exceeding $33 million.

The rule change provides further confidence for businesses to adopt eInvoicing and realise the benefits it is already providing many New Zealand 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. The economy will perform better.