Procurement Connected Policies

The Australian Skills Guarantee (Skills Guarantee), introduced on 1 July 2024, uses the Australian Government's purchasing power to address skills shortages and improve gender diversity in the construction and ICT sectors.

The Skills Guarantee Procurement Connected Policy (PCP) sets national targets for apprentices, trainees, learning workers and women on eligible Australian Government-funded construction and ICT procurements with an estimated individual value of $10 million or more. The policy applies to new procurement processes and is a key commitment under the Secure Australian Jobs Plan.

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

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 Commonwealth entities 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. Other Commonwealth entities are encouraged to adopt the Policy as best practice.
 

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 Indigenous procurement Policy (IPP), intends to stimulate Indigenous entrepreneurship and business development, providing Indigenous Australians with more opportunities to participate in the economy. It 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

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

For policy enquiries: indigenousprocurement@niaa.gov.au

For IPP reporting, system and data enquiries: IPPRS@niaa.gov.au

To 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 WGEA certificate of compliance either with their submission to an approach to market or before entering into a contract.

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

Commonwealth Australian Industry Participation (CAIP) policy helps maximise Australian industry participation, capability and jobs through Australian Government procurements valued at $20 million or more (GST inclusive).

Successful tenderers may need to prepare and implement a CAIP plan.

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