Procurement Connected Policies

The Skills Guarantee will introduce new national targets for apprentices, trainees, paid cadets, and women on eligible Commonwealth-funded procurements. Targets will apply to new Commonwealth tender processes for major building and construction and maintenance services (construction) and information and communications technology (ICT) procurements with a total contract value of $10 million or more, from 1 July 2024.

The Skills Guarantee will use government investment in major projects to help train the next generation of skilled workers and is a key commitment under the Australian Government’s Secure Australian Jobs Plan.

For policy enquiries: asg@dewr.gov.au

For further information on the Australian Skills Guarantee: https://www.dewr.gov.au/australian-skills-guarantee

The Environmentally Sustainable Procurement Policy will reduce the environmental impacts associated with Australian Government procurements. It takes a principles-based approach to buy goods and services that achieve climate, environmental and circularity outcomes.

By generating demand for these products, we will facilitate Australia’s transition to a net zero and circular economy.

From 1 July 2024, the policy applies to all construction services procurements at or above $7.5 million.

From 1 July 2025, the policy applies to all procurements at or above $1 million for:

• Furniture, fittings and equipment
• ICT Goods
• Textiles.

Tenderers must submit a Supplier Environmental Sustainability Plan (SESP) with their tender. Successful tenderers must report against the metrics identified in the SESP.

All non-corporate and prescribed corporate Commonwealth entities must comply with the Policy. Other entities are encouraged to adopt the Policy as best practice.

For policy enquiries and support, email
Sustainable.Procurement@dcceew.gov.au

For guidance visit  www.dcceew.gov.au/sustainable-procurement.

The policy requires, from 1 October 2021, large businesses (Reporting Entities under the Payment Times Reporting Act 2020) that are awarded Australian Government procurement contracts valued over $4 million (GST inclusive) to pay their subcontracts valued up to $1 million within 20 calendar days.

The policy was developed to improve payment times to suppliers operating in the supply chains of Australian Government procurement contracts.

All non-corporate Commonwealth entities must comply with this policy. Other Commonwealth entities are encouraged to use their best endeavours to apply the policy.

For policy enquiries: ptpcp@treasury.gov.au

For information on the definition of a Reporting Entity.
Payment Times Report.

The original policy commenced on 1 July 2019. This revised policy applies to new and existing approaches to market which close on or after 1 October 2024, for procurements valued at $4 million or more (including Goods and Services Tax (GST)) for all goods and/or services, including for construction services. This policy does not require Commonwealth entities to amend existing contracts or deeds of standing offer that are in place prior to this policy’s commencement date.

The policy was developed to increase the integrity of government procurement, as recommended in the Black Economy Taskforce’s final report published in December 2017.

All non-corporate Commonwealth entities must comply with the policy.
 

For policy enquiries: ShadowEconomyPCP@treasury.gov.au.

For information on how to apply for a statement of tax record: www.ato.gov.au/str

The IPP, intended to stimulate Indigenous entrepreneurship and business development, providing Indigenous Australians with more opportunities to participate in the economy, has three key components:

1. A target for purchasing from Indigenous enterprises;
2. A mandatory set-aside to direct some Commonwealth contracts to Indigenous enterprises; and
3. Minimum Indigenous participation requirements for certain Commonwealth contracts

The policy applies to all non-corporate Commonwealth entities subject to the Commonwealth Procurement Rules. Other entities are encouraged to adopt the policy as best practice.

The Australian Industry Participation (AIP) National Framework applies to major Commonwealth Government procurements ($20 million and more).

Successful tenderers for certain Commonwealth procurements are required to prepare and implement an AIP Plan.