Procurement Connected Policies


Resource Management Guide 415 (RMG 415) 'Commonwealth Grants and Procurement Connected Policies' applies to all non-corporate Commonwealth entities.

RMG 415 outlines the administrative framework to ensure future Grants-Connected Policies (GCPs) and Procurement-Connected Policies (PCPs) are applied effectively at a whole-of-government level. RMG 415 details the steps a Commonwealth entity must take to establish a recognised GCP or PCP.

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Procurement Connected Policies

  1. The following table 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.
  2. Policy departments (the entity originating the respective policies) are responsible for the implementation of all aspects of their policy (or policies) listed in the table.
  3. 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.
  4. For further information and advice on policies that interact with procurement, consult the relevant policy department shown in the table below.
  5. Corporate Commonwealth entities are subject to policies where applied under a Government Policy Order.
Procurement Connected Policies - Payment Times
Policy / GuidancePolicy DescriptionPolicy DepartmentContact
Payment Times Procurement Connected Policy

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.

The Department of the Treasury

For policy enquiries:

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

Procurement Connected Policies - Satisfactory Tax Records
Policy / GuidancePolicy DescriptionPolicy DepartmentContact
Shadow Economy – increasing the integrity of government procurement 

The policy requires, from 1 July 2019, businesses seeking to tender for Australian Government procurement contracts over $4 million (including GST) to provide a statement from the Australian Taxation Office showing they have a satisfactory tax record.

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.

The Department of the Treasury

For policy enquiries:

For information on how to apply for a statement of tax record:


Procurement Connected Policies - Social Inclusion
Policy / GuidancePolicy DescriptionPolicy DepartmentContact
Indigenous Procurement Policy

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.

National Indigenous Australians
Workplace Gender Equality Procurement Principles and User GuideTo be considered for Australian Government procurement contracts valued at or above the relevant procurement thresholds, certain tenderers (employers with 100 or more employees in Australia) must be able to demonstrate they are compliant with the Workplace Gender Equality Act 2012 by supplying a letter of compliance either with their submission to an approach to market or before entering into a contract.Department of the Prime Minister and CabinetWorkplace Gender Equality Agency
(02) 9432 7000


Procurement Connected Policies - Australian Industry Participation
Policy / GuidancePolicy DescriptionPolicy DepartmentContact
Australian Industry Participation Plans for Government Procurement

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.

Department of Industry, Innovation and ScienceAustralian Industry Participation Policy Team
02 6213 6404


Procurement Connected Policies - Building Codes
Policy / GuidancePolicy DescriptionPolicy DepartmentContact

The Code for the Tendering and Performance of Building Work 2016 (Building Code 2016), as well as the Building Code 2013 have been repealed by the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (SJBP Act). 

As a result of these changes, Commonwealth entities are no longer required to apply the Building Code 2016 and Building Code 2013. These changes are retrospective, meaning that the requirements of these codes do not apply to any active procurements, contracts, expressions of interest or requests for tender that commenced or were entered into prior to their repeal.  


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