I am pleased to release the Commonwealth Procurement Rules which reflect the Australian Government’s policies and expectations for procuring officials. They will simplify the way Australian Government procurement works, ensuring more opportunities are available to small and medium enterprises.
I have made these Commonwealth Procurement Rules under section 105B(1) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). The previous Commonwealth Procurement Rules (No. 2) - 1 July 2022 (F2022L00874) are repealed when this instrument commences on 13 June 2023.
The Commonwealth Procurement Rules are the foundation of the Commonwealth procurement framework. The Rules are supported by a range of tools, guidance material and templates developed and maintained by the Department of Finance to provide assurance, accountability and transparency into Government procurement activities, and make it easier for businesses to participate in the economy and grow their business through contracting to the Australian Government.
Achieving value for money is the core rule of the Commonwealth Procurement Rules as it is critical in ensuring that public resources are used in the most efficient, effective, ethical and economic manner. Price is not the only factor when assessing value for money, and these Rules require officials to consider a range of other relevant financial and non-financial costs and benefits. Broader economic and social benefits can be realised through normalising consideration of environmental sustainability and climate change impacts, the use of recycled materials in public projects and through more diversity and competition in our supplier base and workforces. This will provide greater opportunities for small, regional and Indigenous owned businesses to contribute to the Australian economy and create more jobs for local communities.
The Commonwealth procurement framework is a major economic lever, and the Government will use its significant purchasing power to support all businesses to deliver better value for money, grow the local economy and strengthen our domestic industry and manufacturing capability to build a better future for all Australians.
Small business is the backbone of the Australian economy and the Government is committed to maximising small business participation in Commonwealth procurement, providing greater opportunities for local businesses to create more jobs for Australians. These Commonwealth Procurement Rules deliver a commitment to help business grow and provides them with more confidence and certainty to plan for the future.
Katy Gallagher
Minister for Finance
