Commonwealth entities must undertake their procurements in accordance with the Commonwealth Procurement Rules (CPRs). Significant amendments to the CPRs will apply from 17 November 2025. The changes reflect the Government’s commitment to ensuring Australian businesses are competitive and are prioritised in Commonwealth procurement.

The changes introduce new obligations for non-corporate Commonwealth entities (NCEs) and clarify existing rules. A new Supplier Portal is intended to improve supplier visibility and engagement.

Amendments to the CPRs include:

• Australian and New Zealand businesses must be considered before broader approaches to market if the procurement value is under the relevant procurement thresholds;
• an increase to the procurement thresholds (from $80,000 to $125,000) for NCEs for non-construction procurements;
• clarification that the secondment of staff between government entities is not a procurement;
• new rules for the conduct of negotiations;
• clarification regarding the handling of confidential information obtained through tender processes; and
• new definitions for ‘Australian business’ and ‘New Zealand business’.

Non-corporate Commonwealth Entities (NCEs)

The updated CPRs introduce several important changes for NCEs, aimed at strengthening local supplier engagement and streamlining procurement processes.

First, the procurement threshold for non-construction procurements has been increased from $80,000 to $125,000, with the effect that more procurements can be direct soured, avoiding an open approach to market.

Second, for non-panel procurements below $125,000, NCEs are now required to invite only Australian businesses to quote. To support this, the CPRs have been restructured: references to non-discrimination have been removed from Division 1 and relocated to Division 2, which applies only to procurements above the relevant thresholds. This change makes clear that the non-discrimination obligation no longer applies to below-threshold procurements or Division 2 exempt procurements.

Third, for panel procurements below $125,000 from the Management Advisory Services Panel, the People Panel, or standing offers managed by the DTA, NCEs must invite only SMEs to submit.

NCEs must continue to apply the Indigenous Procurement Policy, where relevant.

Negotiations

The updated CPRs introduce clearer rules on when and how negotiations with tenderers may be conducted.

Entities must indicate their intention to negotiate in the request documentation if negotiations are anticipated. A relevant entity may proceed with negotiations in two circumstances: where their intention to negotiate was clearly stated in the request, or where no tender is assessed as offering providing best value for money based on the essential requirements and evaluation criteria.

If negotiations are conducted, entities must ensure that any elimination of tenderers is based strictly on the published essential requirements and evaluation criteria. Additionally, all remaining participants must be given a common deadline for to submit revised tenders.

Secondments and other ‘non-procurements’

The updated CPRs provide clearer guidance on what does not constitute procurement for the purpose of the rules.

In particular, paragraph 2.9(i) confirms that secondments between and within government entities are not procurements. This includes secondments between Commonwealth entities; secondments from state, territory, and local government entities; and employment engagements under the Public Service Act 1999 (Cth), Parliamentary Service Act 1999 (Cth), or common law employment.

Additional clarifications have also been made to exclude the following from the definition of procurement:

• the purchase of goods and services for resale, or goods and services used in the production or supply of goods and services for resale; and
• arrangements between NCE entities, where no other ‘potential’ suppliers were approached.

Confidential Information

Paragraph 7.25 of the updated CPRs now reinforces the need for officials to balance supplier confidentiality with the Australian Government’s broader transparency and accountability obligations.

Officials are expected to plan for appropriate disclosure of procurement information. This includes incorporating provisions in request documentation and contracts that alert suppliers to the possibility of disclosure – including to Parliament, its committees, or other Commonwealth entities where it serves legitimate, non-commercial purposes such as policy development, compliance monitoring, or research.

Where relevant, contracts should also include clauses enabling ANAO to access to contractor records and premises for audit purposes.

Officials must consider supplier requests for confidentiality on a case-by-case basis and should only enter unto confidentiality commitments where they are appropriate. The updated guidance clarifies that tender information may be shared within government for oversight and accountability, even if not commercially sensitive.

Contact Us

For advice on how the updated Commonwealth Procurement Rules may affect your agency’s procurement processes, contact our Government Corporate and Commercial team.

We can assist with interpreting the new rules, reviewing procurement strategies, and preparing for the 17 November 2025 commencement.

This article was written by Rachel Bannikoff, Partner, Sarah Romanous, Special Counsel, and Ben Adams, Solicitor.