Overview
From 17 November 2025, the Commonwealth Procurement Rules (CPRs) require non-corporate Commonwealth entities (NCEs) to only invite Australian businesses to make submissions for certain procurements.
CPRs Paragraph 5.4
5.4. For procurements with an expected value at or above $10,000 and below the relevant procurement threshold, excluding procurements from a standing offer, non-corporate Commonwealth entities must invite only Australian businesses to make submissions.
a. Where relevant, the requirements under the Indigenous Procurement Policy must first be satisfied, before an Australian business is approached.
b. If there are no submissions, or no submissions represent value for money, the procuring entity may undertake a procurement using a relevant procurement method.
c. An official responsible for a procurement may determine that approaching an Australian business, or Australian businesses is not appropriate for the procurement and that paragraph 5.4 does not apply. The basis for this decision must be documented.
For goods and services (excluding construction services), the relevant procurement threshold is $125,000.
For construction services, the relevant procurement threshold is $7.5 million.
The CPRs also require NCEs to only invite Small and Medium Enterprises (SMEs) to make a submission when conducting a procurement with an expected value below $125,000 from the Management Advisory Services Panel, the People Panels or any standing offer managed by the Digital Transformation Agency. Please contact your panel manager, if you have additional questions on the application of this policy.
This guidance has been developed to support suppliers with understanding of how Australian businesses are defined, identified and considered in the context of the CPRs.
Please note that the definition of an Australian business is not to be automatically applied to other policies, including Procurement Connected Policies. Please refer to the specific policy guidance to understand the definition of Australian businesses that is used for that policy.
For the full policy, please refer to paragraphs 5.4 and 5.5 of the CPRs and other relevant guidance available on the CPRs page.
Definition of an Australian business
Appendix B of the CPRs provides the following definition:
An Australian business:
- is a business, including any parent business, that:
- has 50% or more Australian ownership, or is principally traded on an Australian equities market; and
- is an Australian resident for tax purposes; and
- is a business that has its principal place of business in Australia.
For the purpose of paragraph 5.4 only, an Australian business also includes a New Zealand business.
Please refer to the Guidance on the definition of an Australian and New Zealand business page for detailed guidance on how the elements of the definition should be interpreted and applied to businesses.
Identifying as an Australian business
Where a business meets the criteria in the definition, they may choose to self-declare their status as an Australian business for procurement purposes. A director, partner, trustee or appropriate officer, with the relevant authority and understanding of the business structure and operations, will need to make the declaration on behalf of the business.
Ahead of an approach to market for a relevant procurement, a procuring entity may ask suppliers to declare that the supplier meets the definition of an Australian business.
Where a supplier is invited to tender for a procurement that is only open to Australian businesses, the approach to market documentation will make this clear. This includes all notices inviting potential suppliers to participate, including requests for quote. The supplier, in submitting their response (whether it is a tender, quote, etc) will be required to confirm that the supplier meets the definition of an Australian business and may be required to provide a declaration.
An optional Australian Business Declaration form is available for this purpose. New Zealand businesses may also use this form, should they wish.
If a supplier is invited to make a submission, but cannot declare its status as an Australian business, it will not be eligible for participation in the procurement and will be set aside from consideration. If you have been invited to participate, and are not an Australian business, it is recommended that you make the procuring entity aware as soon as possible. False declarations may result in actions being taken under the Commonwealth Supplier Code of Conduct, including remedial action and/or termination in accordance with the contractual provisions. The provision of false or misleading information to the Commonwealth is also an offence under section 137.1 of the Criminal Code Act 1995 (Cth).
While being an Australian business will be a pre-requisite to making a submission in relevant procurement processes, it will not be a factor in the decision to award the contract. Submissions will be assessed based on the evaluation criteria specified in the approach to market and tender documentation. Consistent with the core rule of the CPRs, procuring officials must be satisfied that the procurement achieves a value for money outcome.
Supplier Portal
The Supplier Portal is being progressively rolled out for use by suppliers and procuring entities. The Supplier Portal will enable suppliers to the Australian government to actively manage their business information. The Supplier Portal will also allow suppliers to identify the key characteristics of their business, such as being an Australian business, a First Nations business, a women-owned business, an SME and/or a New Zealand business.
The Supplier Portal will assist procuring entities in identifying Australian and New Zealand businesses. Recognising suppliers are being progressively invited to register on the Supplier Portal, businesses are encouraged to include text on your website to raise awareness of your business's capabilities and identifiers.
For detailed information and guidance on the Supplier Portal, please visit the Supplier Portal on the AusTender website.
Interaction with the Indigenous Procurement Policy (IPP)
The primary purpose of the IPP is to stimulate Indigenous entrepreneurship, business and economic development, providing Indigenous Australians with more opportunities to participate in the broader economy. The IPP is intended to significantly increase the rate of purchasing from Indigenous businesses.
The Mandatory Set Aside (MSA), as part of the IPP, provides Indigenous SMEs the opportunity to demonstrate value for money before a general approach to market. The MSA applies to remote procurements, and other procurement wholly delivered in Australia where the estimated value of the procurement is between $80,000 and $200,000, with some exemptions.
For detailed information about the IPP, including the eligibility criteria, please refer to the National Indigenous Australians Agency website.
A procurement may be subject to both the MSA and the consideration of Australian businesses. In these circumstances, the MSA must be applied first. If, in applying the IPP, no suitable Indigenous SME is identified for the procurement, the procuring entity must then approach Australian business/es. This is the responsibility of the procuring entity to determine, and suppliers should not need to take any action.
FAQ
Will a self-declaration of Australian business status be reviewed?
Self-declaration by a potential supplier does not preclude a procuring entity from doing their own due diligence and making reasonable enquiries. This might include, for example, checking directly with the potential supplier or reviewing information on a business’s website.
Can procuring entities use the Australian business definition to preference Australian businesses in open tenders for higher value procurements?
No. Australia’s international government procurement commitments, which are given effect through the CPRs, contain non-discrimination commitments. For open tenders for procurements valued at or above the procurement thresholds, the CPRs require that suppliers must not be discriminated against due to their size, location, degree of foreign affiliation or ownership, or the origin of their goods and services.
What data will be publicly available regarding the consideration of Australian businesses?
Data will progressively become available on contracts awarded to Australian businesses for procurements. Reporting on AusTender will become mandatory for relevant entities from 1 July 2026. This will include, where relevant, the reason as to why an Australian business or businesses were not contracted for a procurement where there was a requirement to do so.
If, during a contract period, my business’s status as an Australian business changes, will the contract be cancelled?
No. Following the initial signing of a contract, a business is not required to confirm its status as an Australian business, during the term of that contract, including where that contract is varied or an extension option has been exercised.
However, if a business falsely represents that it is an Australian business in its tendering process, the contract may be cancelled or other remediation action taken.
How does my business access the Supplier Portal and identify as an Australian business?
For detailed information on the Supplier Portal, including how to register your business and identify as an Australian business, please visit the Supplier Portal Home page.
How does the consideration of Australian businesses apply to New Zealand businesses?
The CPRs specify that references to Australian businesses in paragraph 5.4 include New Zealand businesses. In effect, procuring officials must invite only Australian or New Zealand businesses to make submissions for relevant procurements.
The definition of a New Zealand business for the purposes of the CPRs is as defined in New Zealand’s Government Procurement Rules, available on the New Zealand Government Procurement website.
The New Zealand business definition also applies to the New Zealand element of the SME definition.
For more information on the definition of a New Zealand business, please contact the New Zealand Government through the website linked above.
I am an Australian business, but I wasn’t approached for a particular contract. What do I do?
The requirement to invite only Australian businesses to make a submission applies to procurements valued at or above $10,000 and below the relevant procurement thresholds. These procurements are generally undertaken through limited tender, meaning only a limited number of potential suppliers are invited to tender.
There is no requirement that all relevant Australian businesses are invited to tender for these procurements.
In addition to identifying your business as an Australian business on the Supplier Portal (when invited), you may also wish to undertake promotional activities, such as including text on your website or communicating with relevant departments, to raise awareness of your business's capabilities.
I am an Australian business, but I have been excluded from an approach to market because the entity considers I am not. What should I do?
Complaints regarding a procurement processes, including the consideration of Australian businesses, should be referred to the government entity managing the process.
Information regarding how to make a complaint to an Australian Government entity is available on the entity’s website.
If your issue is not resolved, you can consider raising your complaint with the Australian Government Procurement Coordinator or the Commonwealth Ombudsman.
I am an Australian business who could provide the goods or services, but the contract was awarded to a business that does not identify as Australian. What should I do?
If a procuring entity invites Australian businesses to make submissions, but there are no submissions for the procurement, or no submissions are assessed as representing value for money, the procuring entity may invite other potential suppliers to make submissions, including businesses that do not identify as Australian.
A procuring entity may also determine that approaching an Australian business, or Australian businesses is not appropriate for a particular procurement. The basis for this decision must be documented. By 1 July 2026, AusTender will report the reasons an Australian business was not engaged.
Questions regarding a procurement process should be referred to the government entity managing the process.
I am an Australian business and responded to an approach to market. However the entity has cancelled the process without appointing an Australian business. What should I do?
A government entity may cancel a procurement process for various reasons, such as a change in their business needs resulting in the goods or services no longer being required, or if there is a significant change in the scope of the goods and services that are required.
A procuring entity may also cancel a procurement process if there are no submissions that are assessed as representing value for money.
Questions regarding a procurement process should be referred to the government entity managing the process.
If a company is listed on the ASX, does the nationality of the individual shareholders need to be assessed for the company to be considered an Australian business?
No, the definition of an Australian business in the CPRs requires, amongst other criteria, that the business, including any parent business, has 50% or more Australian ownership, or is principally traded on an Australian equities market.
Do I need verification from the ATO that my business is an Australian resident for tax purposes?
No. Businesses will provide a self-declaration regarding their status as an Australian business, and this will include their status as an Australian resident for tax purposes.
Does the Australian business definition interact with the SME definition in the CPRs?
Yes, the Australian business definition applies to the Australian element of the SME definition.
Further questions
If you have any further questions regarding the Consideration of Australian and New Zealand businesses, please email Sellingtogov@finance.gov.au.
