Government Procurement Amendment Act 2026

Procurement remains the central concept: in section 5(1) of the Act, the removal of "contractual" broadens it to cover non-contractual acquisitions. This means that arrangements such as deeds, licences or bare agreements may now fall within the statutory definition even if not strictly contractual, expanding the range of transactions subject to procurement rules.

Standing-offer arrangement is a key concept used throughout the regulation. The Act’s dictionary now explicitly includes "panel arrangement" as an example, and the separate regulation definition is omitted. This clarifies that arrangements where multiple suppliers are pre-qualified to provide goods or services on an ongoing basis (i.e. panel arrangements) are treated as standing-offer arrangements.

Confidential text is redefined in section 16 of the Act. It now covers an individual’s name and personal information, except for suppliers trading in their own name. This expands the scope of confidentiality beyond commercial information to privacy protection. For legal services contracts, all text is confidential, creating a complete blackout for such contracts.

Limited tender procurement is a procurement method governed by section 7 of the regulation. The amendments create a bifurcated rule: the default is 3 written quotations, but single written quotations are permitted from certified Aboriginal/Torres Strait Islander entities or local small/medium business entities. This establishes a preference for certain suppliers, not just a procedural alternative.

Exemption reasons under section 9 of the regulation allow departure from open tender requirements. The new section 9(1A) clarifies that the "additional goods or services" exemption can apply to either amended original contracts or new contracts. Section 10 now allows the CEO to grant a written exemption from the 3-quotation rule based on reasonable grounds.

Board review under section 14(1) of the regulation is substantially expanded. The board (presumably the Government Procurement Board) must now review not only high-value procurements ($7M+) but also certain ICT projects, multi-entity standing-offer arrangements, scope changes, probity concerns, and any matter referred or considered appropriate. This increases the board’s oversight reach.

Certified Aboriginal or Torres Strait Islander entity is a new defined concept with a 50% ownership/control requirement and certification by bodies such as Supply Nation. The entity must be at least 50% owned and operated by an Aboriginal or Torres Strait Islander person.

Entity based in the ACT or surrounding region is defined by reference to specific NSW local government areas under the Local Government Act 1993 (NSW), creating a geographic zone for preferential treatment. The entity must be permanently and primarily located there.

Small or medium business entity is defined as employing fewer than 200 people, without reference to revenue or other criteria. This is a simple headcount test.

Oral quotation is introduced as a permissible method for procurements under $500, but only if used from a supplier (singular). It is not a full exemption from procurement rules; it is a specific low-value method.

Compliance reporting is alleviated by new section 44(2A) which exempts details about compliance with the secure local jobs code, guidelines, rules and practices. This reduces the scope of what must be reported annually.

Suppliers to the ACT Government are directly affected. Small and medium businesses based in the ACT or surrounding region (the defined NSW areas) gain a potential advantage in limited tender procurements: a single written quotation can satisfy the quota requirement, whereas other suppliers must compete in a 3-quotation process. This reduces the competitive pool for those other suppliers and may shift contract awards towards local SMEs. Certified Aboriginal or Torres Strait Islander entities similarly benefit from the single-quotation pathway. However, suppliers that are not local, not small, or not certified may find it harder to win limited tender work because the preference restricts the number of bids required.

Large businesses that employ 200 or more people are excluded from the local SME definition and must rely on the 3-quotation route or open tenders. They may face increased competition from SMEs in limited tenders and may need to adjust bidding strategies.

Indigenous businesses that obtain certification from Supply Nation or similar bodies gain a distinct advantage. The definition requires 50% ownership and operation by an Aboriginal or Torres Strait Islander person. This may encourage more Indigenous entrepreneurs to seek certification to access the streamlined limited tender process.

Territory entities (government departments, agencies, and prescribed entities) bear the compliance burden of the new rules. They must assess whether a procurement falls under $500 (oral quotation permissible), $500+ (written contract required), or limited tender thresholds. They must also determine whether a supplier qualifies as a certified Indigenous entity or local SME to invoke the single-quotation option. The board review expansion means that more procurements will be scrutinised, requiring additional documentation and justification.

The Government Procurement Board gains a broader review mandate. Its workload will increase as it must review ICT procurements with system development, multi-entity standing-offer arrangements, scope changes, probity concerns, and discretionary referrals. The omission of the board’s annual report obligation (section 20 omitted) reduces its transparency obligation to the public and Assembly, but may reduce administrative overhead.

The responsible chief executive officers of Territory entities acquire new powers. Under new section 10 of the regulation, they can exempt the entity from the 3-quotation requirement if satisfied on reasonable grounds that an exemption reason applies. This vests significant discretion in a single officer, potentially leading to inconsistent application. They also have power to refer procurements to the board.

Certifying entities such as Supply Nation and NACCHO become gatekeepers for the Indigenous preference. Their certification decisions determine which entities qualify for the streamlined path. This creates a dependence on third-party certification.

Legal services providers face complete confidentiality of their contracts when providing legal services to the Territory. All text is deemed confidential text, meaning no details of legal services contracts (including supplier name) are publicly accessible. This may reduce transparency but protect solicitor-client privilege.

Individuals whose personal information appears in procurement contracts gain privacy protection: their names and personal details are now confidential text, except for individuals supplying goods or services in their own name. This protects employees and other individuals from public exposure.

The NSW local government areas listed (Bega Valley, Eurobodalla, etc.) are effectively treated as part of the ACT procurement region for SME preference. Businesses in these areas gain an advantage over businesses in other parts of NSW or Australia.

Territory entities have a duty to ensure that any procurement contract with an estimated total consideration of $500 or more is in writing and signed (section 10 of the Act, as amended). Below that threshold, written form is not required. They also have a duty to seek at least 3 written quotations for limited tender procurements (regulation section 7(2)(a)), unless they rely on the single-quotation alternative for a certified Indigenous entity or local SME (regulation section 7(2)(b)). They may obtain an oral quotation for procurements under $500 (regulation section 6(3)).

The responsible CEO has a discretionary power to exempt the entity from the 3-quotation requirement under new section 10 of the regulation, provided at least one exemption reason under section 9 applies and the CEO is satisfied on reasonable grounds. This is not a duty but a right to deviate from standard procedure.

Territory entities must ensure that any procurement that falls within the expanded board review categories is referred to the board unless an exemption applies (regulation section 14(1) and (1A)). This includes high-value ($7M+) procurements, ICT with system development, multi-entity standing-offer arrangements, scope changes, probity concerns, referrals, and discretionary reviews. The board is not required to review a procurement that qualifies under the section 9(1)(i) exemption (additional goods or services) if the CEO has granted an exemption under section 10 or 10A.

Suppliers have a right to participate in limited tender processes. Certified Indigenous entities and local SMEs have the right to be considered under a single-quotation pathway, which may give them a competitive advantage. However, they do not have an automatic right to a contract; the Territory entity must still evaluate the quotation and decide.

Individuals have a right to have their personal information protected as confidential text under section 16, unless they are supplying goods or services in their own name. This privacy right does not extend to corporate suppliers, only natural persons.

The public has a right to access certain procurement information, but the expansion of confidential text for legal services and for personal information reduces transparency. The omission of the board’s annual report also reduces the public’s ability to scrutinise board performance.

The Minister has a right to refer procurements to the board for review (regulation section 14(1)(e)(i)). Similarly, the responsible CEO, administrative unit, and probity investigators can refer matters.

The board has a right to review any procurement it considers should be reviewed, even if not otherwise captured by the categories (regulation section 14(1)(f)). This gives the board broad discretion to intervene.

Duty to report compliance is reduced: Territory entities no longer need to include details about compliance with the secure local jobs code, guidelines, rules, and practices in annual compliance reports (new section 44(2A) of the Act). This reduces their reporting burden but also reduces accountability for those specific instruments.

The amendment act itself does not create new penalties. Penalties for breaches of the Government Procurement Act 2001 and regulation remain unchanged. However, by widening definitions and obligations, the amendments may expose more conduct to existing penalty provisions.

The expanded board review under regulation section 14(1) acts as an enforcement mechanism: the board can review procurements and presumably recommend action or refer matters for investigation. Non-compliance with board review requirements could lead to consequences under the Act, such as invalidity of procurement contracts or disciplinary action against officers.

The omission of the board’s annual report (regulation section 20) removes a transparency mechanism but does not affect enforcement directly. However, it may reduce external oversight of the board’s own activities.

The ability of a CEO to grant exemptions under new section 10 of the regulation is subject to "reasonable grounds". If a CEO grants an exemption without reasonable grounds, that could be challenged administratively or judicially, but the amendment does not specify a review mechanism.

The expansion of confidential text for legal services means that any disclosure of legal services contract text could be a breach of confidentiality, potentially giving rise to civil liability or disciplinary action against officers who disclose it.

Procurement under $500 is now expressly exempt from the written contract requirement (section 10 of the Act, as amended) and oral quotations are permitted (regulation section 6(3)). This reduces the compliance burden for low-value purchases but also removes a safeguard. There are no specific penalties for obtaining oral quotations above $500, but doing so would be non-compliant and could be treated as a breach of procurement rules.

The definitional changes to "standing-offer arrangement" (including panel arrangements) and the omission of the separate definition in the regulation may have transitional implications. Existing panel arrangements that were not previously standing-offer arrangements may now be captured, affecting review requirements and other obligations.

The requirement to seek written quotations from certified Indigenous entities or local SMEs is not a soft target: it is a mandatory alternative. Failing to comply with this requirement could constitute a breach of the regulation. However, the regulation does not specify a penalty for non-compliance; the Act’s general penalty provisions (likely in section 44 or elsewhere) would apply.

The late tenders amendment (omitting "the last day of" from section 10D(1)(c)) changes the timing for acceptance or rejection of late tenders. The exact effect depends on context. Previously, late tenders could be accepted only if submitted by "the last day of" some period (likely the closing date). Now, the reference to "the last day of" is removed, which may allow acceptance of late tenders submitted after the closing date in certain circumstances. This could reduce the certainty of tender deadlines and increase the risk of challenges from other bidders.

The amendment explicitly references the Local Government Act 1993 (NSW) to define the "surrounding region" for the purpose of entity location (regulation section 7(3)). This means that ACT procurement law incorporates NSW local government boundaries. Changes to NSW local government areas could automatically affect the definition in ACT procurement regulation, unless the ACT updates its regulation.

The Legislation Act (ACT) governs commencement: the Act commences on a day fixed by the Minister, with automatic commencement after 6 months (notes in section 2). The amendment act is not yet in force.

The secure local jobs code made under section 22M of the Act, the guidelines under section 22U, the government procurement rules, and the government procurement practices are all instruments under the Act. New section 44(2A) exempts compliance reports from covering those instruments, implying that compliance with those instruments is not required to be reported annually. This may affect their enforceability by reducing oversight.

The Indigenous preference provisions interact with federal Indigenous procurement policies (such as the Commonwealth Indigenous Procurement Policy). The ACT definition of "certified Aboriginal or Torres Strait Islander entity" may be aligned with or differ from federal criteria. The reference to Supply Nation suggests alignment with the national certification body, but the requirement of at least 50% ownership and operation may be stricter than some federal provisions.

The confidentiality provisions for legal services interact with solicitor-client privilege and legal professional privilege. By deeming all text of a legal services contract as confidential, the amendment goes beyond usual privacy protections. It may conflict with freedom of information legislation if a FOI request is made for such a contract; the confidentiality provision would likely override, but the interaction is not specified.

The board review provisions interact with the Act’s general procurement oversight framework. The board’s expanded discretion to review any procurement (section 14(1)(f)) gives it authority that may overlap with other review bodies, such as the Auditor-General or the Ombudsman. There is no provision in this amendment to resolve potential jurisdictional conflicts.

The omission of the board’s annual report (regulation section 20) removes a statutory reporting requirement. This may interact with the Annual Reports (Government Agencies) Act 2004 (ACT) which requires certain entities to report. If the board is a separate entity, its annual report may be required under that Act regardless. The amendment may reduce duplication but could also reduce the board’s direct accountability.

The definitional changes to "standing-offer arrangement" (including panel arrangement) may interact with contract law. A panel arrangement is typically not a single contract but a framework. Treating it as a standing-offer arrangement may impose procurement obligations on the establishment of the panel, but may also affect how individual call-offs are governed.

The Government Procurement Amendment Act 2026 is a scheduled amendment Act. It originated as the Government Procurement Amendment Bill 2025, presented in the Legislative Assembly on 29 October 2025 (Presentation Speech). It was passed on 3 February 2026 and notified on 16 February 2026. It awaits commencement by Ministerial notice.

The Act amends the principal Act (Government Procurement Act 2001) and the Government Procurement Regulation 2007. It is a single amending instrument, not a consolidation. The next republication of the Act and regulation will incorporate these changes upon commencement.

The amendments target specific sections and provisions. There is no evidence that these amendments respond to a comprehensive review or inquiry; they appear to be incremental adjustments addressing practical issues such as low-value thresholds, board review scope, and transparency for legal services.

The omission of the board’s annual report (regulation section 20) is a notable reversal of transparency. Previously, the board had to report annually; now it does not. This suggests a policy shift away from public accountability for board operations.

The expansion of confidential text for legal services to all text is a significant departure from the general rule that only certain text is confidential. This amendment may have been motivated by concerns about legal professional privilege, but the blanket exclusion of all text is unusual.

The new preference for Indigenous and local SMEs in limited tenders represents a regulatory intervention to favour certain suppliers. This is a departure from the principle of procedural neutrality in procurement.

The Minister has not yet fixed a commencement day. Practitioners should monitor the ACT legislation website for the commencement notice.

At the time of writing, this Act has not yet commenced and therefore there is no litigation history under it. No cases have been reported involving these specific amendments. However, the predecessor provisions have likely generated some administrative reviews or tribunal cases under the ACT Civil and Administrative Tribunal, though none are cited in the source.

The expanded board review categories and the new exemption power for CEOs may generate disputes. For example, a supplier that is not selected after a single-quotation process used for an Indigenous or SME preference may challenge the entity’s classification or the CEO’s exercise of discretion. The "reasonable grounds" test under new section 10 of the regulation could be litigated if a CEO exempts a procurement from the 3-quotation rule.

The confidentiality provisions for legal services may be tested in FOI applications or privacy complaints. If a member of the public or a journalist seeks access to a legal services contract, the Territory may refuse, citing the new deemed confidentiality. An applicant could challenge that refusal in the ACT Civil and Administrative Tribunal or the Supreme Court.

The definition of "entity based in the ACT or surrounding region" may be disputed if a supplier claims to be primarily located in the region but the Territory entity disagrees. The term "permanently and primarily located" is not further defined, so there is scope for interpretive disagreement.

The board’s discretionary power to review any procurement under section 14(1)(f) may be challenged as too broad, but the regulation grants that power expressly.

No judicial consideration of these provisions exists yet. Any future litigation will likely focus on the meaning of "reasonable grounds", "permanently and primarily located", and the scope of confidential text.

Low-value threshold trap: The requirement for a written contract only applies to procurements with an estimated total consideration of $500 or more (section 10 of the Act, as amended). Below $500, oral quotations are expressly permitted (regulation section 6(3)). However, if a Territory entity estimates a procurement at $500 and subsequently the actual cost exceeds that, there is no retroactive requirement for writing if the estimate was reasonable. But if the entity intentionally understates the estimate to avoid the formality, that would be a breach.

Single-quotation preference is not unconditional: The new limited tender rules allow a single written quotation from a certified Indigenous entity or local SME. But the Territory entity must still obtain at least one written quotation from such an entity. If no such entity is available or willing to quote, the entity must seek 3 quotations from others. The preference does not guarantee a contract; it only reduces the number of required quotes.

Certification requirement: To use the single-quotation pathway for Indigenous businesses, the entity must be certified by a third party (e.g. Supply Nation). Self-identification as an Aboriginal or Torres Strait Islander person is not sufficient; the entity must hold certification. Suppliers who are not certified will not qualify.

Entity based in surrounding region: The definition requires the entity to be "permanently and primarily located" in the ACT or listed NSW areas. A business that has a secondary address in the region but is primarily located elsewhere will not qualify. Territory entities must verify location.

Board review exemption trap: The board is not required to review procurements under the $7M+, ICT, or multi-entity standing-offer categories if the procurement is of a kind mentioned in section 9(1)(i) (additional goods or services) and the CEO has granted an exemption under section 10 or 10A. However, this exemption only applies to those categories; it does not extend to probity concerns or referrals. Also, the exemption must be in writing under section 10 or 10A; an oral exemption will not suffice.

Legal services contracts fully confidential: All text of a notifiable contract for legal services is deemed confidential text (section 16(2) of the Act, as amended). This means the public cannot access any details of such contracts, including the identity of the law firm, the scope of services, or the price. This is a broad blackout that goes beyond protecting privilege. It could be abused to conceal high legal fees or questionable appointments.

Omission of board annual report: The board no longer has to produce an annual report (regulation section 20 omitted). This reduces external oversight of the board’s activities, caseload, and decisions. While it reduces administrative burden, it makes it harder for the public to assess the board’s performance.

Incorporated documents excluded from register: Under new section 12A(1)(q) of the regulation, documents applied, adopted or incorporated by reference in a contract amendment do not have to be included in the register entry. This means the register may not contain the full details of a contract if key terms are set out in an external document (e.g. a technical specification). Anyone relying on the register for complete information could miss important terms.

Late tender rule change: The omission of "the last day of" from regulation section 10D(1)(c) likely expands the circumstances in which a late tender can be accepted. Previously, acceptance was limited to tenders submitted by the last day of a period (presumably the closing date). Now, a late tender that arrives after the closing date may still be accepted in some circumstances. This could increase uncertainty for bidders who rely on strict deadlines.

CEO exemption power: New section 10 of the regulation gives the CEO discretion to exempt the entity from the 3-quotation requirement, but only if satisfied on reasonable grounds that an exemption reason applies. The CEO must make the exemption in writing. If the CEO fails to document the reasons, the exemption could be challenged. This power could be exercised inconsistently across different Territory entities.

Dual application of standing-offer arrangement definition: The Act’s dictionary now includes "panel arrangement" as an example of a standing-offer arrangement, while the regulation’s separate definition is omitted. However, the regulation still uses the term "standing-offer arrangement" in various provisions (e.g., section 4(1)(a) note, section 14(1)(b)). This means the Act’s definition applies for the regulation as well. Panel arrangements that were previously not captured may now trigger review requirements.

No transitional provisions: The amendment act does not contain any transitional provisions. It is unclear how existing contracts, standing-offer arrangements, or board review categories are affected upon commencement. For example, a procurement that was in the planning period before commencement but not yet reviewed may become subject to the new expanded review categories. Practitioners should assume immediate effect for all procurements not yet finalised.

Indigenous entity definition: The definition of "Aboriginal or Torres Strait Islander person" in new section 7(3) of the regulation includes a three-part test (descent, identification, acceptance). This is a common but challenging test to verify. Territory entities may need to rely on the certification rather than performing their own assessment, but the regulation does not mandate that. If an entity falsely claims Indigenous status, there is no specific penalty.

SME headcount test: "Small or medium business entity" is defined as employing less than 200 people. This is a simple test but may not reflect economic capacity. A business with 199 employees can be treated as a preferred SME, while a business with 200 employees cannot. This creates a cliff effect.

For Territory entities:

• Review all procurement policies and procedures to incorporate the new definitions and thresholds. Update contract templates to ensure that all procurements with estimated total consideration of $500 or more are in writing and signed. For procurements under $500, document the use of oral quotations carefully to support compliance.
• For limited tender procurements, identify whether suppliers qualify as certified Indigenous entities or local SMEs. Obtain and verify certifications (e.g., from Supply Nation) before relying on the single-quotation pathway. If no such supplier is available or interested, seek at least 3 written quotations from other suppliers. Ensure that the CEO’s exemption under new section 10 of the regulation is in writing and based on reasonable grounds.
• Assess all procurements in the planning period against the new board review categories under regulation section 14(1). Any procurement with estimated value of $7 million or more, ICT with system development or redesign, multi-entity standing-offer arrangement, scope change not provided for, or probity concerns must be referred to the board unless exempted under section 9(1)(i) and section 10/10A. Document the referral or exemption decision.
• For legal services contracts, ensure that all text is treated as confidential text. This means redacting entire contracts from public disclosure, not just specific clauses. Establish internal protocols to prevent inadvertent disclosure.
• Update the procurement register to exclude documents incorporated by reference when entering details of contract amendments. Ensure that the register still contains the essential terms.
• Prepare annual compliance reports without the need to cover the secure local jobs code, guidelines, rules, and practices. However, monitor changes to those instruments as they may still affect substantive compliance.
• Train staff on the new definitions (especially "entity based in the ACT or surrounding region" and "small or medium business entity") and the new oral quotation rule. Maintain records of location verification for SMEs claiming regional preference.

For suppliers:

• If you are an Aboriginal or Torres Strait Islander owned business, obtain certification from Supply Nation or another recognised body to qualify for the single-quotation pathway. Ensure that the certification is current and that the entity meets the 50% ownership and operation test.
• If you are a small or medium business (under 200 employees) based in the ACT or listed NSW areas, document your primary location and ensure it is permanent. Be prepared to provide evidence (e.g., business registration, lease, utility bills) to the Territory entity.
• When responding to limited tender requests, note whether the entity is using the 3-quotation method or the single-quotation method. If the entity uses the single-quotation preference, consider challenging if you believe the preference was wrongly applied (e.g., the selected supplier is not actually certified or located in the region).
• For procurements above $500, ensure that you receive a written contract signed by the Territory entity. Oral agreements are not valid for such procurements.
• If you are a legal services provider, be aware that your contract will be entirely confidential. This may limit your ability to use the contract as a reference or for marketing. Confirm with the Territory entity whether any portions (e.g., payment) can be disclosed with consent, but note the statutory blackout.
• Monitor the commencement date of this Act. Until commencement, the old rules apply.

For certifying entities:

• Ensure that certification processes are robust and that entities meeting the 50% ownership and operation test are properly assessed. The regulation does not prescribe the certification standards, so adopting best practices will reduce challenges.

For the Government Procurement Board:

• Prepare for the expanded review workload. Develop internal guidelines for assessing ICT procurements with system development, multi-entity standing-offer arrangements, and scope changes. The board may also need to exercise its discretionary review power under section 14(1)(f) judiciously to avoid overload.
• Note that the annual report is no longer required, but consider voluntarily publishing aggregated data to maintain transparency.

For all stakeholders:

• Track any Ministerial notice fixing the commencement day. The Act may commence in stages (see section 2 notes). Review the commencement notice to determine which provisions are in effect.
• Seek legal advice if uncertain about the interaction of these amendments with existing contracts or procurement processes. The lack of transitional provisions creates risk for ongoing procurements.
• Participate in any public consultation or guidance issued by the administrative unit responsible for administering the Act. The government may issue new procurement practices or guidelines to clarify the changes.