Procurement Connected Policies


  1. Procurement by non-corporate Commonwealth entities must not be inconsistent with the policies of the Commonwealth in accordance with sections 15 and 21 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).
  2. Table 1 Procurement Connected Policies lists the policies of the Commonwealth that relate to procurement. It does not preclude officials applying any other Government policy that may relate directly to a specific project or procurement.
  3. Policy Departments (the entity originating the respective policies) are responsible for the implementation of all aspects of their policy (or policies) listed in Table 1.
  4. Officials are responsible for informing themselves of the policies that apply to a specific procurement. They should refer to their entity's Accountable Authority Instructions for guidance and, if needed, approach the relevant Policy Department for further information on a specific policy.
  5. For further information and advice on policies that interact with procurement, consult the relevant Policy Department (refer to the relevant website links in Table 1 in the first instance).
  6. Corporate Commonwealth entities are subject to policies where applied under a Government Policy Order.
Table 1: Procurement Connected Policies
Policy / GuidancePolicy DescriptionPolicy DepartmentContact
Social Inclusion

Indigenous Procurement Policy [External Link]

The Indigenous Procurement Policy will take effect from 1 July 2015. It will require Commonwealth entities to award three per cent of Commonwealth contracts to Indigenous businesses by 2020, with interim targets applying each year from 2015-16. 

In addition, the Indigenous Procurement Policy requires that certain contracts be set aside for Indigenous businesses and that some other contracts include mandatory minimum Indigenous employment or supplier use requirements.

Department of the Prime Minister and Cabinet

Workplace Gender Equality Procurement Principles and User Guide [External Link]

The Workplace Gender Equality Procurement Principles and User Guide (the Principles) require Australian Government agencies to obtain a letter of compliance from certain tenderers (employers with 100 or more employees) which indicates compliance with their obligations under the Workplace Gender Equality Act 2012.
The Principles provide advice to entities, tenderers and suppliers, and procuring officials and officers on their roles and responsibilities under the policy.

Department of Employment

Workplace Gender Equality Agency
(02) 9432 7000

Australian Industry Participation

Australian Industry Participation Plans for Government Procurement [External Link]

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

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

Department of Industry

Australian Industry Participation Policy Section
02 6213 6000


Building Code 2013 incorporating the Supporting Guidelines for Commonwealth Funding Entities [External Link]

Relevant Commonwealth entities are required to apply the Code when managing construction contracts.  The Guidelines assist officials with implementation.
Applies to all Commonwealth construction projects, and indirectly funded projects where the Australian Government's contribution is:

  • at least $5 million and represents at least 50 per cent of the total construction project value; or
  • $10 million or more, irrespective of the proportion of Australian Government funding.

Department of Employment
1300 731 293

Last updated: 28 August 2015