Commonwealth Procurement Rules 17 November 2025

Administered by Department of Finance

Legislation au F2025L01263 Rules In force Legislative Instrument

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EXPLANATORY STATEMENT

 

Issued by the authority of the Minister for Finance

 

Public Governance, Performance and Accountability Act 2013

 

Commonwealth Procurement Rules 17 November 2025

Purpose:

The Commonwealth Procurement Rules (CPRs) set out the rules that Commonwealth officials from non-corporate Commonwealth entities and certain prescribed corporate Commonwealth entities must follow when performing duties related to procurement. The CPRs are amended as required to give effect to government policy or improve their clarity.

This update to the CPRs reflects the Australian Government’s commitment to improving the competitive capability of Australian businesses participating in Commonwealth procurement, including key changes to give effect to the Government’s election commitment to prioritise Australian businesses in government procurements and contracts. This update to the CPRs also increases the threshold at which non-corporate Commonwealth entities must conduct open tenders for non‑construction procurements. Raising this threshold allows more contracts to prioritise Australian businesses. The updated CPRs will apply to all approaches to market from 17 November 2025.

Background:

The CPRs incorporate the requirements of government policy in procurement and Australia’s international trade obligations, into a set of rules which apply to Commonwealth procurement. The CPRs are written in plain English, reflecting their purpose in being a set of rules procuring officials can and must refer to when undertaking relevant procurements. 

The CPRs apply to procurements conducted by non-corporate Commonwealth entities and certain procurements conducted by prescribed corporate Commonwealth entities as listed in section 30 of the Public Governance, Performance and Accountability Rule 2014.

Changes to the CPRs are detailed at Attachment A below; unless detailed at Attachment A, the previous requirements of the CPRs continue to apply. This update includes:

  • requirements to consider Australian, and New Zealand, businesses prior to broader approaches to market for procurements under the relevant procurement thresholds;
  • an increase to the procurement threshold for non-construction non-corporate Commonwealth entity procurements requiring application of Division 2;
  • clarification that the secondment of staff between and within Commonwealth entities and from state, territory and local government entities is not a procurement;
  • requirements around when and how negotiations may be conducted, and removes duplicative wording from the minimum time limits section;
  • clarification of requirements for handling confidential information provided by tenderers; and
  • new definitions for ‘Australian business’ and ‘New Zealand business’.

The CPRs are supported by guidance available at www.finance.gov.au/government/procurement.

 

Authority

The CPRs are issued by the Minister for Finance under s105B(1) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). As per s105B(2) of the PGPA Act, the instrument is not subject to section 42 (disallowance) of the Legislation Act 2003. This instrument commences on 17 November 2025 and repeals the previous Commonwealth Procurement Rules 1 July 2024 (F2024L00627).

Under subsection 33(3) of the Acts Interpretation Act 1901, where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.

Commencement

The CPRs 17 November 2025 commences on 17 November 2025.

 

Consultation

The CPRs are the operational rules that set out the mandatory requirements for Australian Public Service officials managing procurement in relevant entities. The CPRs implement international obligations related to procurement and government policies relating to public administration. Consultation for amendments to the CPRs is determined based on the nature of the proposed changes.

The changes in the CPRs reflect government policy commitments, including implementing the public commitment made by the Prime Minister during the 2025 federal election, to prioritise Australian businesses in Commonwealth procurement. This involved the adoption of the Australian business definition into the CPRs. This definition was developed as part of an earlier process. Other changes to the CPRs improved the alignment of the CPRs with Australia’s international government procurement obligations.

In accordance with sections 17(1)(a) and (b) of the Legislation Act 2003, the rule-maker considered the following consultation to be appropriate and reasonably practicable.

The Chief Procurement Officer’s Roundtable, comprising: the Departments of Defence (Defence); Health, Disability and Ageing; and Industry, Science and Resources; the Australian Digital Health Agency; the Australian Taxation Office; the Digital Transformation Agency; Services Australia; the Office of Parliamentary Counsel; and the Director of National Parks were consulted on various aspects at different points in time, and on the draft as a whole. Liaison also took place with the Department of Home Affairs (Home Affairs), noting their significant procurement activity. Minor clarifications were adopted with no significant issues raised.

The Department of Foreign Affairs and Trade, and the Office of International Law within the Attorney General’s Department were consulted to ensure the changes align with our international government procurement obligations. Neither entity identified any significant concerns with the proposed changes.

The National Indigenous Australians Agency (NIAA) was consulted on the changes that had interactions with the Indigenous Procurement Policy, including the prioritising of Australian businesses and changes to align Appendix A, Exemption 17 with recent changes to the Indigenous Procurement Policy. Neither entity identified any significant concerns with the proposed changes.

The following entities raised matters they sought to have addressed through the CPRs with their proposals being adopted:

  • The Department of the Treasury (Treasury) sought clarification of the treatment of certain ‘secondments’ for the purposes of the CPRs. The Australian Public Service Commission (APSC) also contributed.
  • Treasury and the Australian Competition and Consumer Commission (ACCC) sought changes to sharing of ‘confidential information’ in submissions.

The Department of Finance (Finance) undertook a public consultation process to support the development of the definition of an Australian business for procurement from 16 September 2024 to 25 October 2024. Finance received a number of submissions, predominantly from peak bodies and industry, and some government entities. Submissions (where consent to publish has been provided) are available on the Finance website -https://www.finance.gov.au/government/procurement/defining-australian-business-commonwealth-procurement/public-consultation.

Finance additionally consulted with the Australian Bureau of Statistics, Australian Taxation Office (ATO), Defence, Department of Employment and Workplace Relations, Department of Industry, Science and Resources, Digital Transformation Agency and Treasury to develop the definition of an Australian business for procurement. 

The submissions were supportive of the development of an Australian business definition for procurement, with strong support to include the business location, tax residency, ownership, being an Australian employer, consideration of parent businesses and having an Australian Business Number (ABN). 

The Minister for Finance approved the CPRs 17 November 2025.


ATTACHMENT A

 

Details of the Commonwealth Procurement Rules 17 November 2025

 

Section 1— Foreword

 

This section provides information from the Finance Minister and states that the Commonwealth Procurement Rules 17 November 2025 are made under section 105B(1) of the PGPA Act, repeal the version made on 1 July 2024 and provide that the CPRs instrument commences on 17 November 2025.

 

Section 2— Procurement Framework

 

This section provides information on the procurement framework and the Commonwealth entities it applies to. This section also includes information on what is considered to be procurement for the purpose of the CPRs and additional policy, guidance and information that must be considered or complied with when procurement for the purposes of the CPRs is undertaken. A reference to Australia’s international obligations is included in this section.

Paragraph 2.9 has had the following changes made:

  • 2.9.e. – clarifies that the procurements of goods and services used in the production or supply of ‘services’ for resale is not a procurement;
  • 2.9.j. – clarifies that arrangements between non-corporate Commonwealth entities where no other ‘potential’ suppliers were approached is not a procurement; and
  • 2.9.i. - amended to include that the secondment of employees between and within Commonwealth entities, and from state, territory and local government entities is not a procurement.

 

The diagram of the legislation and policy environment has been amended to include ‘procurement connected policies’ and ‘ICT procurement policies’.

 

Changes to this section include updating the following footnotes:

  • footnote 1: to reference section 6 of these CPRs; and
  • footnote 3: to amend the reference from the Commonwealth Grants Rules and Guidelines to the Commonwealth Grants Rules and Principles.

 

Section 3— How to use the Commonwealth Procurement Rules   

 

This section explains which entities are covered by the CPRs and advises how officials within those entities must comply with the CPRs. It also sets out the government’s policy regarding ministerial involvement in procurement and the impact of applying an Appendix A exemption on the rules that then apply to that procurement process.

 

A new paragraph has been included in this section to clarify that that all thresholds and values are inclusive of GST. Minor edits have been made throughout the document to remove other references to GST.

 

The procurement thresholds referred to in paragraphs 3.10 and 3.11 have been updated from $80,000 to $125,000, consistent with the updated procurement thresholds in paragraph 9.7.

 

An update to paragraph 3.12 has been made to ensure consistency with the change made to 7.27 and 7.28.

 

Division 1: Rules for all procurements

Section 4— Value for Money  

 

This section sets out the factors that comprise consideration of value for money, and the potential additional consideration of the broader benefits to the Australian economy, depending on the estimated value of the procurement. This section also explains the requirement to apply procurement-connected policies, coordinated procurement and cooperative procurement where appropriate. Information on contract end dates and third-party procurement is also included.

 

Paragraph 4.4.a. has been amended to clarify that competition is encouraged amongst potential suppliers to ensure value for money. Text regarding non-discrimination has been moved to Division 2.

 

Paragraph 4.5.c. has been updated to include ethical conduct as a factor in consideration of value for money.

 

Paragraphs 4.11 and 4.12 (and the related footnote 7) define coordinated procurement and have been amended to introduce the concept of ‘coordinated arrangement’ which is frequently used as an alternative term in commonwealth procurement. A minor edit also clarifies that coordinated procurements refer to Australian government arrangements.

 

Section 5— Encouraging competition  

 

This section establishes the use of competitive procurement processes as a core value of the CPRs. This section also sets out the consideration an official should give regarding the potential impact on small and medium enterprises (SMEs) when establishing a procurement process and undertaking value for money considerations. This section also includes the Australian Government’s commitments to contract with SMEs.

 

A new subsection has been included to give effect to the Government decision to prioritise Australian businesses in Commonwealth procurement.

 

Requirements regarding non-discrimination have been removed from this section and moved to Division 2. Requirements for potential suppliers to be treated equitably based on their commercial, technical and financial abilities are now reflected in paragraph 5.3.

 

Paragraph 5.4 is a new requirement that directs officials from non-corporate Commonwealth entities to invite only Australian businesses to tender for procurements below the relevant procurement thresholds (excluding procurements from standing offers). This paragraph also clarifies that the Indigenous Procurement Policy must first be applied where relevant, that value for money requirements must still be met and that relevant officials may determine that approaching an Australin business is not appropriate for the procurement (and must document the decision). Due to non-discrimination requirements in the Australia New Zealand Government Procurement Agreement, any reference to an Australian business must also include New Zealand businesses, and this is clarified through the new definition of an Australian business.

 

Paragraph 5.5 is a new requirement that directs officials from non-corporate Commonwealth entities undertaking procurements from the Management Advisory Services Panel, the People Panel, or standing offers managed by the DTA, with an expected value of below $125,000, to first invite submissions from SMEs. While this focuses on procurements from select standing offers, it aligns the procurement value with the procurement thresholds in section 9.

 

Section 6— Efficient, effective, economical and ethical procurement  

 

This section sets out the Australian Governments requirement that procurements involve the proper use of public resources. It details the requirements on Commonwealth officials to act ethically throughout a procurement processes, as well as setting out the requirement to include the Supplier Code of Conduct in Commonwealth procurement contracts. It also sets out requirements for the management of procurement complaints by entities and the application of the Government Procurement (Judicial Review) Act 2018 (GPJR Act).

 

Paragraph 6.6 is an existing provision that has been moved from Division 2 into Division 1 to better reflect its intent to be applied to all relevant procurements. This change has been made in response to recommendation 1 of the Australian National Audit Office performance audit Procurement Complaints Handling (Report No. 19 of 2022-23) (ANAO Procurement Complaints Handling Audit).

 

Section 7— Accountability and transparency  

 

This section explains the Australian Government’s commitment to ensuring accountability and transparency in procurement, including record keeping, providing information to the Parliament and public, treatment of confidential information and AusTender reporting.

 

Paragraph 7.23 has been split into 7.23 and 7.24, to assist readability and separate the submission and contract phases.

 

Paragraph 7.25, regarding the treatment of confidential information, has been amended to clarify that submissions and confidential information provided as part of tendering may be shared within the Commonwealth for compliance monitoring and other legitimate, non-commercial purposes.

 

Paragraph 7.27 incorporates provisions regarding standards that were previously included in Division 2. The requirement has removed the focus on Australian standards and instead focuses on where a standard is determined to be applicable, tender responses must be able to demonstrate the capability to meet the standard. This change is in response to recommendation 1 of the ANAO Procurement Complaints Handling Audit.

A minor edit has also been made to paragraph 7.28, due to a minor change to the subheading of this category, to clarify that, where compliance with a standard was required, this should be checked during the contract period.

Section 8— Procurement risk  

 

This section reinforces the existing PGPA Act requirements for entities to manage risk and provides additional requirements and principles related to procurement.

 

Section 9— Procurement method  

 

This section sets out the requirement to estimate the value of a procurement, and the approach or method that must be applied in relation to the value of the procurement depending on the type of procurement being undertaken and entity type. Information regarding the use of standing offers is included in this section.

 

The procurement threshold for non-corporate Commonwealth entities, for non-construction procurements, has been raised from $80,000 to $125,000 in paragraph 9.7.a. The adjustment to the threshold is consistent with Australia’s international trade obligations.

 

Paragraph 9.14 has been clarified to make clear that multiple potential suppliers should be approached when procuring from a standing offer arrangement.

 

Division 2: Additional rules for procurements at or above the relevant procurement threshold

Section 10— Additional rules  

 

This section sets out the additional rules for procurements that meet the thresholds set out in Section 9. These rules including the conditions required for a limited tender to be undertaken, the documentation required for approaches to market including the use of specifications, ability to modify evaluation criteria or specifications, conditions for participation, minimum timeframes for procurement processes, management and acceptance of submissions (tenders) and the awarding of contracts.

 

Paragraph 10.1 and 10.1.a have been reordered and combined, for ease of reading. Paragraph 10.2 has moved from Division 1 to Division 2, as it only applies to above threshold procurements. It clarifies that that for procurements at or above the relevant procurement threshold potential suppliers to government must not be discriminated against.

 


A number of changes have been made in response to recommendation 1 of the ANAO Procurement Complaints Handling Audit. These include:

  • Request documentation:
    • a new requirement at paragraph 10.6.e. that request documentation must include information on the intention to conduct negotiations, where applicable. 
    • a minor change to paragraph 10.8.e to clarify that responses to information requests from potential suppliers should ensure that no other suppliers or potential suppliers gain an advantage in a competitive procurement process.
  • Specifications
    • a minor edit has been made to paragraph 10.9 to clarify that an entity must not use specifications for the purpose or effect of creating unnecessary obstacles;
    • a minor edit has been made to paragraph 10.12 to clarify that entities must not provide an advantage for any supplier over other suppliers.
  • Negotiations
    • New sub-section outlining when and how negotiations with tenderers may be conducted, to provide clarity to entities and suppliers is include at paragraphs 10.18 and 10.19.
  • Handling of submissions and additional information
    • Clarification in paragraph 10.32, and the associate subheading, that procedures to receive, open and handle submissions must be fair and must ensure that submissions and any additional information received is treated in confidence.

 

As outlined in Division 1, Section 6 above, text requiring officials to make reasonable enquires to ensure the procurement is being carried out with regard to relevant regulations and/or regulatory frameworks, has been removed from Division 2 and instead included in Division 1.

 

Text has been removed in paragraph 10.27, to remove any duplication with the new negotiations section outlined above.

 

Appendix A: Exemptions

This section sets out that certain procurements which meet the criteria for one of the exemptions listed in this appendix are exempt from Division 2 of the CPRs, and from paragraphs 4.7, 4.8, 7.27 and 7.28 of Division 1, where the exemption is applied.

 

Exemption 16 has been amended to align the definition of an Indigenous Enterprise with the Indigenous Procurement Policy.

 


Appendix B: Definitions

This section sets out defined terms used with the CPRs.

 

Four new definitions, regarding the definition of an Australian business, the definition of a New Zealand business, the definition of the Management Advisory Services Panel and the definition of the People Panel have been included to give effect to the requirements in paragraphs 5.4 and 5.5.

 

The language in the definition of Small and Medium Enterprises has minor amendments to ensure it aligns with the new Australian business and New Zealand business definitions.


The definition of a ‘standing offer’ has been amended to clarify that this refers only to Commonwealth arrangements.

 

Paragraph numbering and weblinks

Due to the insertion, movement and deletion of paragraphs, there are multiple changes to paragraph numbering which have not been explicitly identified. Some weblinks have also been updated throughout the document, which have not been explicitly identified.

 

External references

The CPRs contain references to legislation, policy and guidance to be considered when undertaking procurement.

 

The following legislation and legislative documents are referenced in the CPRs. These can be readily and freely accessed on the Federal Register of Legislation at www.legislation.gov.au:

  • the Public Governance, Performance and Accountability Act 2013;
  • the Public Governance, Performance and Accountability Rule 2014;
  • the Public Service Act 1999;
  • the Parliamentary Service Act 1999;
  • the Commonwealth Grants Rules and Principles 2024;
  • the Crimes Act 1914;
  • the Government Procurement (Judicial Review) Act 2018;
  • the Freedom of Information Act 1982;
  • the Modern Slavery Act 2018; and
  • the Corporations Act 2001.

 


The following policy and guidance is available on the Finance website and URLs are provided in the CPRs for:

  • the Supplier Pay On-Time or Pay Interest Policy;
  • the Commonwealth Supplier Code of Conduct;
  • Resource Management Guide 420 – Mandatory use of the Commonwealth Contracting Suite for procurement under $200,000;
  • Resource Management Guide 423 – Procurement Publishing and Reporting Obligations;
  • Whole of Australian Government Procurement Management Advisory Servies Panel;
  • Whole of Australian Government Procurement People Panel; and
  • the Commonwealth Risk Management Policy.

 

Additional references and URLs are included in the CPRs for the:

  • Australia-New Zealand Closer Economic Relations Trade Agreement;
  • New Zealand Government Procurement Rules;
  • Government Guidelines for Official Witnesses before Parliamentary Committees and Related Matters;
  • DTA’s standing offer arrangements;
  • Home Affairs’ Australian Government Protective Security Policy Framework; and
  • NIAA’s Indigenous Procurement Policy.

 

 

 

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.