Over $1m

If you have come to this page directly, please go to the BuyRight home page. This contains conditions that you need to first consider when conducting your procurement.

Key Policies that apply to procurements valued at over $1 million are:

This page highlights items that require consideration for procurements over $1m.

Review the steps below to inform your actions

F.1. Considerations when purchasing over $1m

There are additional policy requirements that you need to consider when contracting for large values.

Addressing Modern Slavery in Procurement
You should consider if there are risks of modern slavery within the potential supplier's operation or in their supply chain when planning your procurement. The Australian Border Force has produced a modern slavery procurement toolkit to assist in identifying, assessing and addressing modern slavery risks in procurement activities. This is for use in procurements over $200,000. (see https://modernslaveryregister.gov.au/resources/)

Economic Benefit to the Australian Economy
You must assess the economic benefit to the Australian economy for all contracts over $4m (see CPRs 4.7-4.8).

Black Economy Procurement Connected Policy- Increasing the integrity of Commonwealth Government procurement
You must assess if suppliers and first tier subcontractors have a valid and satisfactory Statement of Tax Record (STR) for all contracts over $4m (see the Department of the Treasury website)

Indigenous Procurement Policy (IPP) mandatory minimum requirements for indigenous employment
Mandatory minimum requirements of the Indigenous Procurement Policy (IPP) apply when contracts delivered in Australia are valued at $7.5m or more, where the majority of goods or services are in a specified industry.

► Check the National Indigenous Australians Agency   to see if IPP requirements apply to your procurement. If your procurement is affected by these requirements, it will need to comply with the mandatory minimum requirements for Indigenous employment within the contract and the supplier’s organisation.

Commonwealth funded building works
There are a range of requirements that apply during the procurement of Commonwealth funded building work and during the actual conduct of the works. 

  • The procurement threshold for construction services is $7.5m. You only need to go to open tender for these services if they are at or above this threshold (CPRs 9.7).

Australian Industry Participation Policy
Australian Industry Participation is linked to the Commonwealth Procurement Framework via a procurement-connected policy. Some requirements exist for procurements over $20m (see the Department of Industry, Science and Resources website).

● Payment Times Procurement Connected Policy

The policy requires, 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. For further information see Payment Times Procurement Connected Policy | Treasury.gov.au.

● Disaggregation of large projects

To maximise competition, officials should consider the disaggregation of large projects into smaller packages, where appropriate (refer paragraph 5.5 of the CPRs). Further guidance on disaggregation can be found on the Finance website.

● Disclosure of country of Tax Residency

You must include a requirement for tenderers to disclose their ultimate parent entity’s country of tax residency in their tender submission for procurements greater than $200,000 (GST inclusive) (see the Department of the Treasury website).


F.2. Conduct of the procurement

Large procurements may be complex with a high risk profile that may impact your entity’s ability to achieve its strategic outcomes or may just be the result of large volumes or longer timeframes for routine goods or services.

You need to determine the complexity of your procurement:

  • if it is for routine goods or services and is just a large volume then you may wish to apply the BuyRight process for procurements valued at $200k - $1m
  • if it is complex or has strategic implications it may be appropriate to seek professional procurement assistance from your central procurement area.

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