Australian federal procurement in one paragraph
Federal entities buy under the Commonwealth Procurement Rules (CPRs), issued under the Public Governance, Performance and Accountability Act 2013. The current edition took effect on 17 November 2025 and made the biggest changes in two decades:
- A higher threshold: $125,000, up from $80,000.
- A new rule: below the threshold, only Australian businesses may be invited.
- A formal definition of an Australian business.
The core test is value for money, which now includes ethical conduct. Above $1 million ($7.5 million for construction), entities must also consider the benefit to the Australian economy. States and territories have their own rules and portals, and the CPRs don’t apply to them. Defence accounts for more than half of federal procurement value.
Where Australian tenders are published
| Where | What’s on it |
|---|---|
| AusTender (tenders.gov.au) | Every federal open tender, each entity’s annual procurement plan, and every contract and standing offer of $10,000 or more. Registration is free and gives email alerts. |
| Panels (standing offers) | Much federal buying goes through panels, such as the Management Advisory Services Panel and the People Panel. Buying from a panel isn’t an open tender, so getting onto a panel is often the way in. |
| State and territory portals | buy.nsw (NSW), Tenders VIC, QTenders (Queensland), Tenders WA, and portals for SA, Tasmania, the ACT and the NT. |
Limited tenders are by direct invitation and don’t appear as open approaches to market.
The thresholds in 2026
| Entity | Threshold (including GST) |
|---|---|
| Non-corporate Commonwealth entities (departments and most agencies) | $125,000 |
| Prescribed corporate Commonwealth entities | $400,000 |
| Construction services, all entities | $7,500,000 |
At or above the threshold, the full rules apply: an open tender unless a listed exemption applies, the 25-day minimum, and non-discrimination.
Below the threshold, from $10,000, non-corporate entities must invite only Australian businesses, after meeting the Indigenous Procurement Policy, unless an official decides in writing that the rule doesn’t apply. New Zealand businesses count as Australian for this rule. Since 1 July 2026, entities must report on AusTender why they didn’t contract an Australian business where the rule required one. Some panels are also reserved for SMEs below $125,000.
An Australian business must, including any parent company:
- be at least 50% Australian-owned, or principally traded on an Australian stock exchange;
- be an Australian tax resident; and
- have its principal place of business in Australia.
How contracts are procured
- Open tender: anyone can respond, including multi-stage tenders with an open first stage.
- Limited tender: above the threshold only in listed cases, such as no acceptable bids, extreme urgency, a sole source or additional deliveries, and always reported on AusTender.
- Minimum time: at least 25 days for an open tender at or above the threshold, plus 5 days each if documents or bids aren’t electronic. It can drop to 10 days for purchases flagged in the annual procurement plan 40 days to a year ahead, for commercial goods and services, or in urgency.
- Late bids are rejected unless the entity mishandled them.
SME targets. Entities aim for at least 25% of contract value from SMEs for contracts up to $1 billion, and 40% for contracts up to $20 million. In 2024–25 they reached 20.7% and 51.9%. An SME is an Australian or New Zealand business with fewer than 200 full-time staff. Purchases from an SME up to $500,000 are exempt from open-tender rules.
Indigenous Procurement Policy. Contracts of $80,000 to $200,000 delivered wholly in Australia, and all remote contracts, must first be offered to Indigenous businesses. Larger contracts of $7.5 million or more in specified industries carry minimum Indigenous participation requirements. The target is 3% of contracts in 2025–26, rising to 4% by 2029–30.
What you need to bid
- AusTender registration is free, and you need it to download documents and lodge bids.
- ABN: not mandatory to bid, but highly recommended. Without an Australian Business Number, payers must withhold part of each payment.
- Tax residency: tenders over $200,000 must disclose your country of tax residency and your ultimate parent’s. Buyers can’t exclude you on that basis.
- Statement of Tax Record: for procurements of $4 million or more, bidders need a satisfactory Statement of Tax Record from the Australian Taxation Office.
- Workplace gender equality: employers with 100 or more staff in Australia must provide a compliance letter for contracts at or above the threshold.
- Other policies:
- Australian Industry Participation plans for contracts of $20 million or more.
- The Payment Times policy for large suppliers on contracts over $4 million.
- Sustainability plans for construction of $7.5 million or more, and some goods of $1 million or more.
- The Australian Skills Guarantee for construction and ICT of $10 million or more.
- Security: sensitive and defence work needs security clearances through AGSVA and, for defence, membership of the Defence Industry Security Program.
- Insurance is generally needed only before signing, not to bid.
- Contracts: non-corporate entities use the Commonwealth Contracting Suite for contracts under $200,000, and every contract includes the Commonwealth Supplier Code of Conduct.
How bids are assessed and challenged
Contracts go to the bid offering the best value for money, judged on price, quality, fitness for purpose, whole-of-life costs and the supplier’s ethical conduct. Entities must promptly tell bidders the outcome and give a debriefing on request.
Complaints and court action (Government Procurement (Judicial Review) Act 2018):
- Complaint: complain first to the entity’s accountable authority. It must investigate, and generally suspend the procurement while it does.
- Court: apply to the Federal Court or the Federal Circuit and Family Court for an injunction within 10 days of the breach, or of when you knew or should have known of it.
- Compensation: limited to reasonable tender-preparation and complaint costs. A breach doesn’t invalidate a signed contract.
Getting paid
- Payment: within 20 calendar days of acknowledged delivery and a correctly rendered invoice, for contracts of any value.
- E-invoices: within 5 days for Peppol e-invoices, where both sides agree.
- Late payment: interest is paid on late payments.
Bidding from outside Australia, including from India
Above the threshold, Australia doesn’t discriminate. The CPRs’ non-discrimination rule protects all potential suppliers, regardless of foreign ownership, location or the origin of goods. It isn’t limited to treaty partners. Overseas suppliers won 6.2% of federal contracts and 11.7% of their value in 2024–25.
Below the threshold, you won’t be invited unless you are an Australian or New Zealand business, since November 2025.
India has no treaty procurement rights in Australia:
- The WTO Government Procurement Agreement: Australia joined in 2019, but India is only an observer.
- The Australia–India ECTA (in force 29 December 2022) has no government procurement chapter.
- The Australia–India CECA, the broader agreement, is still being negotiated. Leaders recommitted to concluding it in July 2026, and procurement is one of the open issues. Nothing official shows a procurement chapter has been agreed.
In practice, for an Indian company:
- Target open tenders at or above the threshold on AusTender. They are open to you on equal terms.
- Don’t count on a subsidiary for small contracts. An Indian-owned Australian subsidiary usually fails the 50% Australian-ownership test, so it won’t be invited below the threshold either.
- Get an ABN if you’re entitled to one, and be ready to disclose tax residency (over $200,000) and get a Statement of Tax Record ($4 million or more).
- Get onto panels in your field, since much buying happens there.
- Expect hurdles in defence and security work, which needs Australian security clearances.
What changed in 2025–2026
- 1 July 2025: sustainability plans extended to some goods contracts of $1 million or more, and the Indigenous target rose to 3%.
- 17 November 2025: new Commonwealth Procurement Rules. The threshold rose to $125,000, invitations below it were limited to Australian and New Zealand businesses, and ethical conduct was added to value for money.
- 6 May 2026: prescribed corporate entities must assess their compliance with the rules in their annual reports.
- 1 July 2026: entities must report why they didn’t use an Australian business where required. A stricter test for Indigenous businesses (51% owned and controlled) began, with a transition year.
- July 2026: Australia and India recommitted to concluding the CECA. No date has been set.
askTender currently lists a small selection of Australian tenders. Here are some that are open now:
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Questions
Can Indian companies bid for Australian government contracts?
Yes, for federal procurements at or above the thresholds: $125,000 for most non-corporate entities, $400,000 for prescribed corporate entities and $7.5 million for construction. There, the Commonwealth Procurement Rules forbid discrimination by foreign ownership, location or origin, whatever country you’re from. Below those values, since 17 November 2025, federal buyers must invite only Australian (or New Zealand) businesses. Neither the WTO agreement nor the Australia–India ECTA gives India procurement rights, and the CECA under negotiation isn’t concluded.
What counts as an Australian business?
Since November 2025, a business, including any parent company, that is at least 50% Australian-owned or principally traded on an Australian stock exchange, is an Australian tax resident, and has its principal place of business in Australia. An Indian-owned Australian subsidiary usually fails the ownership test, because the parent counts.
Do I need an ABN to bid on AusTender?
No, but it is highly recommended. Without an Australian Business Number, the payer must withhold part of each payment. Registering on AusTender is free and lets you download documents, get alerts and lodge bids.
How long is an Australian open tender open?
At least 25 days for procurements at or above the threshold, plus 5 days each if documents or bids aren’t electronic. It can drop to as little as 10 days for purchases listed in the annual procurement plan, for commercial goods and services, or in genuine urgency.
How do I complain about an Australian government tender?
Complain first to the entity’s accountable authority, which must investigate and generally suspend the procurement. You can also seek an injunction from the Federal Court or the Federal Circuit and Family Court within 10 days of the breach, or of when you knew of it. Compensation is limited to reasonable tender and complaint costs.
How quickly does the Australian Government pay?
Within 20 calendar days of acknowledged delivery and a correctly rendered invoice, or 5 days for Peppol e-invoices where both sides agree. This applies to contracts of any value.
Sources
- Commonwealth Procurement Rules, 17 November 2025 (F2025L01263)
- PGPA Amendment (Procurement Reporting Measures) Rules 2026
- Government Procurement (Judicial Review) Act 2018
- Department of Finance: procurement-connected policies
- Department of Finance: statistics on Australian Government procurement contracts
- Selling to Government: minimum requirements
- Selling to Government: using AusTender
- Selling to Government: getting paid
- NIAA: Indigenous Procurement Policy guidelines (12 May 2026)
- DFAT: Australia–India Comprehensive Economic Cooperation Agreement negotiations
- WTO: parties and observers to the Government Procurement Agreement
This guide explains the rules in plain English; it isn’t legal advice. Procurement rules change, and each tender document sets its own conditions — it always prevails.