Government Procurement Review (International Free Trade Agreements) Act 2019
In Force
TAS
Jurisdiction
Tasmania
Act Number
27 of 2019
Collection
act
Plain English Summary
6/10 complexity
This Act makes parts of international procurement agreements enforceable in Tasmania by turning specified Treasurer’s Instructions and Department guidelines into binding "enforceable procurement provisions" for nominated agencies. Suppliers can complain, suspend procurements, and apply to the Supreme Court for declarations, injunctions or limited compensation.
Procurements may proceed if a public interest certificate is issued; contracts remain valid despite contraventions; compensation is limited to reasonable tendering and complaint costs. The Act applies only to agreements the State agrees with the Commonwealth and generally excludes contraventions before commencement.
This Act sets out a statutory process by which suppliers can challenge Tasmanian government procurement that, by reference to specified international procurement agreements and implementing instruments, must comply with particular procurement provisions. It does four mechanical things.
First, it creates the statutory categories and definitions that determine coverage: "applicable international procurement agreement", "enforceable procurement provision", "covered procurement", "relevant government agency", "accountable authority" and "excluded category" (section 3). The Act ties those concepts to external instruments: Treasurer's Instructions made under the Financial Management Act 2016 and guidelines specified in those Instructions (section 5). The State's agreement with the Commonwealth about which international agreements apply to Tasmania determines which international obligations are in scope (the definition of "applicable international procurement agreement" in section 3).
Second, it creates a two-step administrative-judicial complaint and remedy pathway for suppliers. A supplier who believes a relevant government agency has contravened an enforceable procurement provision may complain in writing to the accountable authority of the agency (section 7). The accountable authority must investigate and prepare a report (section 8). While a complaint is live and there is no public interest certificate, the accountable authority must suspend the procurement (section 9). The supplier may then apply to the Supreme Court for declarations and interlocutory or interim injunctions (section 10), or for compensation (section 14). The Act prescribes procedural limits on when the Court may entertain declarations and injunctions (section 11), and gives the Court discretion to prefer an order for compensation where issuing a declaration would cause significant delay (section 12).
Third, the Act defines the remedies and limits. The Supreme Court may declare that conduct is or would be in contravention of an enforceable procurement provision and may grant interlocutory or interim injunctions (section 10). The Court can order compensation for suppliers up to specified heads of reasonable expenditure: tender preparation costs, complaint-related costs, and costs of attempts to resolve the complaint (section 14(2)). The Act expressly preserves the validity of contracts despite contraventions (section 17) and is not retrospective except that preservation of contract validity applies to pre-commencement contraventions (section 18 and section 17).
Fourth, it allocates powers and administration. The Governor may declare by order additional relevant government agencies and accountable authorities (section 4), and regulations may be made (section 19). Until administrative arrangements are otherwise made, the Treasurer and the Department of Treasury and Finance administer the Act (section 20). The Act binds the Crown in right of Tasmania (section 6).
The Act therefore sets a complaint-triggered suspension power that can interrupt a procurement, a statutory investigation duty for accountable authorities, an avenue to court relief including injunctions and compensation limited to reasonable costs, and an administrative architecture that relies on Treasurer's Instructions and guidelines to determine what procurement rules are "enforceable" for the purposes of the Act (section 5). The interplay between mandatory suspension (section 9), the narrow heads of compensable loss (section 14), the preservation of contract validity (section 17), and the Treasurer/Secretary-driven instruments that define enforceable procurement provisions (section 5) are the Act's core mechanical features.
Main concepts
The Act establishes a small set of interlocking legal concepts that determine who is covered, what rules apply, and what relief is available. These are defined in section 3 and given operative effect in Part 2 and Part 3.
Relevant government agency and accountable authority: A "relevant government agency" is primarily an entity specified in Part 1 of Schedule 1 to the Financial Management Act 2016, plus entities identified in an applicable international procurement agreement as falling within its scope, and any entity declared by Governor's order under section 4. The "accountable authority" is generally the accountable authority under the Financial Management Act 2016 for that entity, or a person specified by order if that does not apply (section 3). The Governor may also declare additional agencies or appoint accountable authorities by order (section 4). Those definitions determine who is subject to the investigation, suspension and judicial remedies in the Act.
Applicable international procurement agreement and enforceable procurement provision: The Act recognises that international procurement obligations may be applied to Tasmanian procurements where the State has agreed with the Commonwealth. However, the textual route by which international obligations become actionable under this Act is not automatic treaty incorporation. Instead, Treasurer's Instructions made under the Financial Management Act for the purpose of giving effect to applicable international procurement agreements may include or refer to guidelines that the Secretary of the Department of Treasury and Finance specifies in those Instructions to be "enforceable procurement provisions" (section 5(1)). Those guidelines can be specified to apply to agencies not otherwise bound by the Treasurer's Instructions (section 5(2)). In short, enforceable procurement provisions are implemented by a State administrative instrument chain: Treasurer's Instructions and Secretary-specified guidelines made under Finance Act authority.
Covered procurement and excluded category: A "covered procurement" is a procurement to which an enforceable procurement provision applies (section 3). The Act excludes certain categories from its procurement definition, including health and welfare services, education services, advertising services, plasma fractionation services, and any goods and services specified in an enforceable procurement provision as excluded (section 3). The procurement definition itself is broad and includes identifying the need, supplier selection, and disposal of unserviceable goods, plus intangibles and construction and works, but expressly excludes real property (section 3(2)).
Who it affects
This Act's instrument targets a narrow set of actors and touches others indirectly through procurement disruption risk.
Relevant government agencies and accountable authorities: The primary parties directly affected are "relevant government agencies" as defined in section 3. Those include entities listed in Part 1 of Schedule 1 to the Financial Management Act 2016, entities falling within classes specified in applicable international procurement agreements, and any entity declared by Governor's order under section 4. Accountable authorities of those entities are responsible for statutory investigative duties (section 8) and suspension obligations (section 9). Where an entity is not a corporation sole or body corporate, interlocutory injunctions may be addressed to the accountable authority (section 10(4)).
Suppliers and potential suppliers: Suppliers, meaning persons who supply or could supply goods and services (section 3), gain standing rights. A supplier with an affected interest who believes a relevant government agency has contravened an enforceable procurement provision may make a written complaint to the accountable authority (section 7). Suppliers can trigger suspension of a procurement (section 9), pursue judicial declarations and injunctions in the Supreme Court (section 10), and seek compensation limited to specified heads of reasonable expenditure (section 14). Suppliers thereby acquire both an administrative route and a judicial route to challenge procurement conduct.
The State (Tasmania) and corporate agencies: The Act binds the Crown in right of Tasmania (section 6). The Supreme Court’s power to order compensation is framed to be enforceable against the State where the agency is not a corporation sole or body corporate, or against the relevant corporate agency where it is a corporation sole or body corporate (section 14(1)). The administration of the Act is initially with the Treasurer and the Department of Treasury and Finance (section 20). The Governor has order-making powers to declare additional relevant agencies and accountable authorities (section 4) and the capacity to make regulations (section 19), which means executive decisions can expand or clarify who is within scope.
Officials who set implementing instruments: The Secretary of the Department of Treasury and Finance and the Treasurer have practical control over what becomes an "enforceable procurement provision" because the mechanism is that Treasurer's Instructions may include or refer to guidelines that the Secretary may specify to be enforceable procurement provisions under the Financial Management Act framework for the purpose of giving effect to applicable international procurement agreements (section 5). Consequently, procurement officers and those who draft Treasurer's Instructions and the Secretary’s guidelines are indirectly but materially affected because their instruments determine substantive obligations subject to complaint and Court scrutiny.
Key duties and rights
The Act creates express duties for accountable authorities and rights for suppliers, and it allocates decision-making power to the Treasurer, Secretary and the Governor.
Accountable authority duties: The accountable authority of a relevant government agency must investigate any written complaint made by a supplier which claims the agency has engaged, is engaging, or proposes to engage in conduct contrary to an enforceable procurement provision, and must prepare a report of the investigation (section 8(1)). Where a complaint is made and there is no public interest certificate, the accountable authority must suspend the procurement until the "relevant time" (section 9(1) and (2)). The accountable authority is also empowered to discontinue the investigation in specified circumstances: supplier withdrawal, supplier informing the authority the complaint is resolved, relevant Supreme Court findings in proceedings under the Act, or where continuation would prejudice the proper administration of justice (section 8(2)-(3)). These are mandatory duties and permitted discontinuation conditions.
Supplier rights and obligations: A supplier whose interests are affected has the right to submit a written complaint to the accountable authority (section 7(1)). The supplier also has the right to withdraw a complaint (section 7(2)). After complaint and investigation, a supplier whose interests are affected can apply to the Supreme Court for declarations, interlocutory or interim injunctions (section 10), and make an application for compensation for contraventions or proposed contraventions (section 14). The Court will not issue declarations unless the applicant has made the statutory complaint and, where reasonable, has attempted to resolve it (section 11(1)). There are strict time limits on initiating court applications: generally 10 days from the later of contravention occurrence or awareness, for past contraventions; 10 days from awareness for ongoing contraventions; and 10 days from awareness for proposed contraventions, subject to extension only for reasons linked to attempts to resolve or special circumstances (section 11(2)-(5)). Thus suppliers have rights but must comply with procedural prerequisites and tight timeframes.
Court powers and constraints: The Supreme Court may declare conduct to be, or would be, in contravention (section 10(1)-(2)), grant interlocutory or interim injunctions pending determination (section 10(3)), and make compensation orders against the State or the agency depending on corporate form (section 14(1)). The Court must observe the statutory limitations on issuing declarations, notably complaint prerequisite and the 10-day rules (section 11). It must also, when compensation has been applied for and a public interest certificate exists and the procurement has not reached contract stage, consider whether a declaration or injunction would cause significant delay and whether an order for compensation would be a more appropriate remedy (section 12). The Court has broader equitable discretion to grant relief (section 16) and may discharge or vary interlocutory injunctions (section 10(5)).
Penalties and enforcement
This Act does not create criminal offences or monetary fines in the traditional penal sense. Its enforcement model is civil and quasi-equitable, implemented through administrative obligations, suspension mechanics, and judicial relief in the Supreme Court.
Administrative enforcement: Accountable authorities are subject to mandatory administrative duties. On receipt of a valid written complaint from a supplier, the accountable authority must investigate and prepare a report (section 8(1)). If a complaint is made and there is no public interest certificate in relation to the procurement, the accountable authority must suspend the procurement until the "relevant time" specified in the Act (section 9(1)-(2)). The accountable authority may discontinue the investigation only under specified circumstances, such as supplier withdrawal, supplier advice that the complaint is resolved, determinative Supreme Court findings, or where continuation would prejudice the proper administration of justice (section 8(2)-(3)). Those duties are enforceable by judicial review and are preconditions to the Court's remedial jurisdiction.
Judicial remedies: The Supreme Court is the enforcement forum. Its remedies are declaratory relief, interlocutory and interim injunctions, and monetary compensation subject to statutory caps and heads of recoverable loss. Section 10 permits the Court to declare that conduct is or would be in contravention of an enforceable procurement provision and to grant interim injunctions pending determination. The Court may address injunctions to the accountable authority where the agency is not a corporation sole or body corporate (section 10(4)). The Court may also discharge or vary interlocutory or interim injunctions (section 10(5)).
Compensation regime: The Court's power to order compensation is limited by section 14. Compensation orders are available against the State where the agency is not a corporation sole or body corporate, or against the corporate agency where it is. The "relevant amount" recoverable is capped by statute at an amount not more than the sum of three heads: reasonable expenditure incurred in preparing a tender, reasonable expenditure in connection with making the statutory complaint, and reasonable expenditure incurred in connection with making a reasonable attempt to resolve the complaint (section 14(2)). The Act therefore precludes awards of general damages, lost profits, or speculative consequential losses; enforceable recovery is defined narrowly.
Limitations, procedural constraints and timing: The Court's power to issue declarations or injunctions is subject to procedural prerequisites in section 11. The applicant must have first made a complaint to the accountable authority, and, where it would have been reasonable to do so, must have made a reasonable attempt to resolve the complaint (section 11(1)). The Act imposes strict filing time limits for applications to the Court: generally 10 days to bring an application concerning past or present contraventions, and 10 days from awareness for proposed contraventions (section 11(2)-(4)), with extensions only where delay is attributable to reasonable attempts to resolve or special circumstances (section 11(5)). Section 12 further requires the Court to consider delay to procurement when compensation has been applied for and a public interest certificate exists, potentially steering the Court toward monetary rather than injunctional remedies where injunctions would cause significant procurement delay.
How it interacts with other laws
This Act is designed to operate in a legal ecology that includes the Financial Management Act 2016, the Administrative Arrangements Act 1990, and other instruments made under those Acts. The text itself links directly to those statutes and makes several dependencies explicit.
Financial Management Act 2016 and Treasurer's Instructions: The Act relies on the Financial Management Act 2016 for two critical operational elements. First, the definitions of "accountable authority" and "relevant government agency" refer to entities and roles identified in the Financial Management Act 2016 (section 3). Second, the substantive instrument that makes procurement obligations "enforceable" under this Act is the Treasurer's Instructions made under the Financial Management Act. Section 5(1) provides that Treasurer's Instructions made for the purpose of giving effect to applicable international procurement agreements may include or refer to guidelines specified by the Secretary to be enforceable procurement provisions. That means that the content, scope and reach of the enforceable procurement obligations under this Act are determined by instruments produced under the Financial Management Act 2016. The Act thus complements and depends on that statutory framework rather than establishing substantive procurement rules within its text.
Administrative Arrangements Act 1990: The Act contemplates that administrative assignment of the Act may be made under the Administrative Arrangements Act 1990. Until such an order is made, section 20 assigns administration to the Treasurer and the Department of Treasury and Finance. Once an Administrative Arrangements Act order is made, section 4 of that Act may reallocate administration. Section 4 of this Act empowers the Governor to declare entities to be relevant government agencies and to appoint accountable authorities if the Financial Management Act's usual arrangements do not apply, which is a use of executive order-making power within the system of administrative arrangements.
Commonwealth-State agreement and applicable international procurement agreements: The concept of "applicable international procurement agreement" in section 3 is expressly tied to international agreements that apply to procurements by Australian Governments and which the State has agreed with the Commonwealth to apply to Tasmania. The Act does not itself incorporate international agreements directly into Tasmanian law; it focuses on ensuring that State administrative instruments give effect to those agreements. The Act therefore interacts with intergovernmental agreements by enabling domestically issued Treasurer's Instructions and Secretary's guidelines to carry the enforcement consequences within the Tasmanian legal order.
Amendment history
The text provided contains no express amendment schedule, previous amending acts, or recorded amendment entries within the Act itself. The Act's internal structure makes several temporal provisions and locks that are relevant when considering later changes.
Commencement and non-retrospectivity: The Act commences on a day to be proclaimed (section 2). Section 18 provides a transitional rule: the Act, apart from section 17, does not apply to a contravention of an enforceable procurement provision that occurred before the commencement of this Act. Therefore any future amendments to commencement or retroactivity must be read against that transitional provision. Section 17, which preserves the validity of contracts notwithstanding contraventions, applies even to contraventions before commencement. That is an internal saving provision which future amendments ought to respect or expressly override.
Delegation to executive instruments: The Act puts considerable substantive content outside its four corners by making enforceable procurement provisions the product of Treasurer's Instructions and Secretary-specified guidelines (section 5). Consequently, amendments to the Financial Management Act 2016 or to Treasurer's Instructions and guidelines will materially change how this Act operates. The Act also gives the Governor regulation-making power (section 19) and order-making power to declare additional relevant government agencies and accountable authorities (section 4). Amendment to jurisdictional coverage may therefore occur by executive instrument in addition to parliamentary amendment.
Administration and assignment: Section 20 assigns administration initially to the Treasurer and Department of Treasury and Finance until an Administrative Arrangements Act order is made. An amendment to administrative arrangements through that Act or through executive order would change who administers the Act without statutory amendment. Section 4 likewise allows the Governor to declare agencies as relevant government agencies; that is an order-making power that can expand or contract the set of covered entities.
Amendment mechanisms available: The Act explicitly anticipates regulatory detail and delegated decision-making. Section 19 allows regulations to be made that apply differently according to time or circumstance and to authorise matters to be determined by other persons or bodies. That provides a flexible mechanism to change operational details without amending this Act’s primary text. However, substantive changes to core civil remedies, the compensation heads in section 14, complaint prerequisites in section 11, or the preservation of contract validity in section 17 would require primary legislative amendment unless implemented via delegated instruments that fall within the scope of section 19 and the Financial Management Act framework.
Litigation history
The Act text itself contains no record of judicial decisions or litigation history. It does, however, create a defined litigation pathway and sets clear procedural preconditions and judicial powers that will govern future litigation brought under the statute.
Court forum and remedies: Part 3 establishes the Supreme Court as the exclusive judicial forum referenced by the Act for declarations, injunctions and compensation arising under the Act (section 10 and section 14). The Court may issue declarations that conduct is or would be in contravention of an enforceable procurement provision, may grant interlocutory or interim injunctions, and may order compensation against the State or the corporate agency depending on the agency’s legal form (section 10 and section 14).
Procedural preconditions likely to be litigated: Section 11 establishes litigation prerequisites that are ripe for dispute in initial filings and interlocutory applications. The Court must not grant a declaration unless the applicant has made a complaint to the accountable authority and, if reasonable, made a reasonable attempt to resolve the complaint (section 11(1)). The Act places 10-day time limits on applications for declarations relating to past contraventions, ongoing contraventions and proposed contraventions (section 11(2)-(4)), subject to extensions only if the applicant’s delay is attributable to attempts to resolve the complaint or special circumstances (section 11(5)). Those statutory conditions will be focal points in litigation, as respondents will contest whether the complaint precondition and time limits were met.
Interplay between injunctions and compensation: Section 12 provides that where a supplier has applied for compensation and a public interest certificate exists and the procurement has not reached contract stage, the Court must weigh whether issuing a declaration or injunction would significantly delay the procurement and whether compensation would be a more appropriate remedy. That statutory direction will be a flash point in litigation where applicants seek urgent injunctions and agencies assert procurement delay and public interest certificates to shift the remedy to compensation.
Suspension and public interest certificate disputes: Section 9 requires suspension of procurement on receipt of a complaint unless there is a public interest certificate (section 15). Litigation may therefore involve interlocutory contests over whether a procurement was properly suspended, whether a public interest certificate was validly issued, and whether suspension should be lifted. Section 10(3) permits the Court to grant interlocutory or interim injunctions pending determination.
Gotchas
The Act contains several provisions that create traps for the unwary; these are concrete legal mechanics rather than policy judgements. Practitioners must note the following precise points rooted in the text.
Complaint prerequisite and time bars: The Court may not issue a declaration unless the applicant has made the statutory complaint and, where reasonable, attempted to resolve it (section 11(1)). The Act imposes strict 10-day time limits for filing applications in relation to contraventions, ongoing contraventions, and proposed contraventions (section 11(2)-(4)). Extensions are narrowly available only where delay is attributable to reasonable attempts to resolve the complaint or special circumstances (section 11(5)). Failure to file within these windows risks dismissal. That means suppliers must act quickly and document attempts to resolve complaints to preserve judicial remedies.
Mandatory suspension and public interest certificate exception: Upon a complaint and absence of a public interest certificate, the accountable authority must suspend the procurement (section 9(1)). A single supplier complaint can therefore halt procurement activity unless the agency issues a public interest certificate under section 15. Agencies may use that certificate to continue procurement, but suppliers must be alert to the certificate’s existence because it alters the suspension mechanics and the Court’s remedial calculus under section 12.
Narrow compensation heads: Compensation is limited to reasonable expenditure for tender preparation, complaint-related expenditure, and expenditure in attempting to resolve the complaint (section 14(2)). The Act does not provide for loss of profits, opportunity costs, or broader consequential losses. Suppliers seeking full economic remediation will not find it in this Act; they must be prepared to prove and cap claims within those heads.
Contract validity preserved: Section 17 states that contravention does not affect the validity of a contract, and section 18 makes the Act inapplicable to pre-commencement contraventions apart from that preservation. Practically, this means that even successful challenges may not lead to contract voiding; the remedy is limited to declarations, injunctions, or the narrow compensation permitted, not contract rescission. Parties must therefore calibrate expectations regarding the practical effect of successful litigation.
Enforceable procurement provisions delegated outside the Act’s text: The substantive rules that suppliers may claim have been violated are not listed in the Act itself. They are created by Treasurer's Instructions and Secretary-specified guidelines under section 5. Suppliers and agencies must therefore determine which Treasurer's Instructions and guidelines are in force and specified as enforceable procurement provisions. This delegation means that the source of an enforceable obligation may be an administrative instrument rather than primary legislation.
How to comply
Compliance requires two distinct playbooks: one for relevant government agencies and accountable authorities, and one for suppliers who participate in procurement processes.
For accountable authorities and agencies
Know which instruments apply: Identify whether your agency is a "relevant government agency" under section 3 by checking Part 1 of Schedule 1 to the Financial Management Act 2016, any applicable international procurement agreement classes, and any Governor’s order under section 4. Confirm whether any Treasurer's Instructions and Secretary-specified guidelines have been made enforceable for your agency (section 5(1)-(2)). Documentation of these instruments should be centrally maintained.
Operationalise Treasurer’s Instructions and guidelines: Because enforceable procurement provisions are created under section 5 by Treasurer's Instructions and Secretary-specified guidelines, ensure procurement policies, templates and training reflect those instruments. Keep a compliance register mapping procurement steps to the relevant enforceable provisions.
Prepare for complaints and investigations: Establish a written complaints intake process that directs supplier complaints to the accountable authority and logs receipt dates and content, because complaint timing triggers duties and strict 10-day time limits in section 11. Build an investigation protocol that complies with section 8(1): investigation and a prepared report. Track and preserve evidence relevant to the investigation.
Suspension and public interest certificate protocol: Put in place decision-making procedures for procurement suspension under section 9 and for issuing public interest certificates under section 15. Because section 9 mandates suspension while a complaint is live and no public interest certificate exists, your agency must have a rapid mechanism to decide whether to suspend and whether to issue a public interest certificate, and to record reasons for issuing such a certificate.
Record-keeping for compensation exposure: Maintain contemporaneous records of tendering costs, complaint-related costs and any costs incurred in attempts to resolve complaints. Section 14(2) limits compensable losses to these heads. Accurate record-keeping will assist in defending compensation claims and in calculating potential exposure.
Litigation preparedness: Understand the Supreme Court’s powers under Part 3. Be ready to respond quickly to applications for declarations or injunctions. Because interlocutory relief can be addressed to the accountable authority (section 10(4)), have legal counsel and operational staff prepared to liaise with the Court on short notice.
Current sections
Direct links to the current provisions in Government Procurement Review (International Free Trade Agreements) Act 2019.
(1) In this Act, unless the contrary intention appears –
accountable authority means –
(a) in relation to an entity to which paragraph (a) of the definition of relevant government agency applies – the accountable authority, under the Financial Management Act 2016 , in relation to that entity; and
(b) in relation to an entity to which paragraph (b) or (c) of the definition of relevant government agency applies –
(ii) if subparagraph (i) does not apply in relation to the entity – the person specified in an order under section 4 to be the accountable authority in relation to that entity;
applicable international procurement agreement means an international agreement that –
(a) applies to procurements by Australian Governments; and
(b) the State has agreed with the Commonwealth to apply to Tasmania;
covered procurement means a procurement to which an enforceable procurement provision applies;
enforceable procurement provision – see section 5 ;
excluded category means –
(a) health and welfare services; and
(b) education services; and
(c) advertising services; and
(d) plasma fractionation services; and
(e) any goods and services specified in an enforceable procurement provision to be an excluded category for the purposes of this paragraph;
goods includes a right, interest or thing that is legally capable of being owned;
procurement, in relation to goods and services, means the process of acquiring goods and services by –
(a) identifying the need to purchase goods and services; and
(b) selecting suppliers for goods and services –
and includes the disposal of goods that are unserviceable or no longer required but does not include any process, or part of a process, in relation to goods and services within an excluded category;
public interest certificate, in relation to a procurement, means a certificate issued under section 15 in relation to the procurement;
(b) an entity, to which paragraph (a) does not apply, that is within a class of entities that is specified in an applicable international procurement agreement as a class of entities to which that agreement is to relate; and
(c) an entity declared in an order under section 4 to be a relevant government agency for the purposes of this Act –
and includes a person acting on behalf of such an entity;
supplier means a person who supplies, or could supply, goods and services.
(2) A reference in this Act to goods and services includes a reference to –
(a) goods or services; and
(b) physical objects and intangibles such as intellectual property, contract options or goodwill; and
(c) construction and works –
but does not include real property.
4
Orders may declare relevant government agencies and accountable authorities
4 Orders may declare relevant government agencies and accountable authorities
(1) The Governor, by order, may declare a person, statutory authority or entity to be a relevant government agency for the purposes of this Act.
(2) The Governor, by order, may declare a person to be, for the purposes of this Act, the accountable authority of a relevant government agency specified in the order, if there is not an accountable authority in relation to the entity by virtue of paragraph (a) of the definition of accountable authority in section 3(1) or paragraph (b)(i) of that definition.
5
Enforceable procurement provisions
5 Enforceable procurement provisions
(1) Treasurer's Instructions made under the Financial Management Act 2016 for the purpose of giving effect to applicable international procurement agreements may include or refer to guidelines, made by the Secretary of the Department of Treasury and Finance, that are specified in those Treasurer's Instructions to be enforceable procurement provisions for the purposes of this Act.
(2) Guidelines referred to in subsection (1) may specify that they apply to a relevant government agency even though the agency is not otherwise required under the Financial Management Act 2016 to comply with the Treasurer’s Instructions that include or refer to the guidelines.
6
Act binds Crown
6 Act binds Crown
This Act binds the Crown in right of Tasmania and, so far as the legislative power of Parliament permits, in all its other capacities.
Part 2
Complaints
Part 2 Complaints
7
Supplier may make complaint
7 Supplier may make complaint
(1) A supplier who has reason to believe that a relevant government agency has engaged, is engaging, or is proposing to engage, in relation to a covered procurement, in conduct in contravention of an enforceable procurement provision may, if the interests of the supplier are affected by the conduct or proposed conduct, make to the accountable authority of the relevant government agency a written complaint about the conduct.
(2) A supplier may withdraw a complaint made by the supplier under subsection (1) .
8
Investigation of complaint
8 Investigation of complaint
(1) If a supplier makes a complaint under section 7 to the accountable authority of a relevant government agency, the accountable authority must –
(a) investigate the conduct that is the subject of the complaint; and
(b) prepare a report in relation to the investigation.
(2) The accountable authority of the relevant government agency to which a complaint is made may discontinue the investigation in relation to the complaint if –
(a) the supplier withdraws the complaint; or
(b) the supplier informs the accountable authority that the supplier considers the complaint to be resolved; or
(c) in proceedings instituted under this Act in the Supreme Court in relation to the conduct that is the subject of the complaint, the Supreme Court makes either of the following findings:
(i) that the conduct was in contravention, in relation to a covered procurement, of an enforceable procurement provision;
(ii) that the conduct was not in contravention, in relation to a covered procurement, of an enforceable procurement provision.
(3) If –
(a) proceedings are instituted under this Act in the Supreme Court in relation to conduct that is the subject of the complaint; and
(b) the continuation of the investigation would be likely to result in prejudice to the proper administration of justice –
the accountable authority must discontinue the investigation.
9
Suspension of procurement where complaint made
9 Suspension of procurement where complaint made
(1) If –
(a) a supplier makes under section 7 a complaint to the accountable authority of a relevant government agency about conduct in relation to a procurement; and
(b) when the complaint is made, there is no public interest certificate in relation to the procurement –
the accountable authority must suspend the procurement until the relevant time.
(2) For the purposes of subsection (1) , the relevant time is the earliest of the following times:
(a) the time, if any, when the supplier informs the accountable authority that the supplier considers the complaint in relation to the conduct to be resolved;
(b) the time when the supplier withdraws the complaint, if at all;
(c) the time, if any, when the accountable authority issues a public interest certificate in relation to the procurement;
(d) the time, if any, when the Supreme Court, in proceedings under this Act in relation to the conduct, makes either of the following findings:
(i) that the conduct was in contravention of an enforceable procurement provision;
(ii) that the conduct was not in contravention of an enforceable procurement provision.
Part 3
Declarations, Injunctions and Compensation
Part 3 Declarations, Injunctions and Compensation
10
Declarations and injunctions
10 Declarations and injunctions
(1) If a relevant government agency has engaged, is engaging, or is proposing to engage, in conduct in contravention, in relation to a covered procurement, of an enforceable procurement provision, the Supreme Court may, on the application of a supplier whose interests are affected by the conduct or proposed conduct, declare that the conduct is or would be in contravention of the enforceable procurement provision.
(2) If –
(a) a relevant government agency has refused or failed, is refusing or failing, or is proposing to refuse or fail, to do an act or thing; and
(b) the refusal or failure is or would be conduct in contravention, in relation to a covered procurement, of an enforceable procurement provision –
the Supreme Court may, on the application of a supplier whose interests are affected by the refusal or failure, declare that the conduct is or would be in contravention of the enforceable procurement provision.
(3) Pending determination of an application under subsection (1) or (2) in relation to a relevant government agency, the Supreme Court may grant an interlocutory or interim injunction restraining the agency from engaging or proposing to engage in conduct that is or would be in contravention of an enforceable procurement provision.
(4) If the relevant government agency is not a corporation sole or body corporate, the interlocutory or interim injunction may be addressed to the accountable authority in relation to the agency.
(5) The Supreme Court may discharge or vary an interlocutory or interim injunction granted by it under this section.
11
Limitation on power to issue declaration
11 Limitation on power to issue declaration
(1) The Supreme Court must not issue a declaration under section 10 in relation to a contravention, or a proposed contravention, in relation to a covered procurement, by a relevant government agency unless –
(a) the Court is satisfied that the applicant for the declaration has made a complaint under section 7 in relation to the contravention or proposed contravention; and
(b) if the Court considers that it would have been reasonable for the applicant to have attempted to resolve the complaint – the Court is satisfied that the applicant has made a reasonable attempt to resolve the complaint.
(2) The Supreme Court must not issue a declaration under section 10 in relation to a contravention that has occurred unless the Court is satisfied that the application for the declaration was made –
(a) within 10 days after the later of –
(i) the day on which the contravention occurred; or
(ii) the day on which the applicant became aware, or ought reasonably to have become aware, of the contravention; or
(b) within a longer period that the Court allows.
(3) The Supreme Court must not issue a declaration under section 10 in relation to a contravention that is occurring unless the Court is satisfied that the application for the declaration was made –
(a) within 10 days after the day on which the applicant became aware, or ought reasonably to have become aware, of the contravention; or
(b) within a longer period that the Court allows.
(4) The Supreme Court must not issue a declaration under section 10 in relation to a proposed contravention unless the Court is satisfied that the application for the declaration was made –
(a) within 10 days after the day on which the applicant became aware, or ought reasonably to have become aware, of the proposed contravention; or
(a) the applicant's failure to make the application within the 10-day period referred to in subsection (2)(a) , subsection (3)(a) , or subsection (4)(a) , respectively, is attributable to the applicant's reasonable attempt to resolve the complaint referred to in subsection (1)(a) ; or
(b) there are special circumstances that warrant allowing a longer period.
12
Determination of application for declaration where alternative remedy of compensation applied for
12 Determination of application for declaration where alternative remedy of compensation applied for
(1) Subsection (2) applies to an application under section 10 to the Supreme Court for a declaration made by a supplier in respect of a contravention, or a proposed contravention, in relation to a covered procurement, if –
(a) the supplier has made an application for an order under section 14 in relation to the contravention or proposed contravention; and
(b) there is a public interest certificate in relation to the procurement; and
(c) the procurement has not reached the stage where a contract, or other arrangement, in relation to the covered procurement has been entered into with a supplier.
(2) If this subsection applies to an application in respect of a contravention, or a proposed contravention, in relation to a covered procurement, the Supreme Court must consider –
(a) whether the issue of the declaration, or the grant of an interlocutory or interim injunction, would result in a significant delay to the covered procurement; and
(b) if so, whether the making of an order under section 14(1) in relation to the contravention would be a more appropriate remedy for the contravention, or proposed contravention, than the issue of the declaration.
(3) If the Supreme Court, after considering under subsection (2) whether the making of an order under section 14(1) in relation to the contravention, or proposed contravention, in respect of which an application under that section is made would be a more appropriate remedy for the contravention or proposed contravention than the issue of the declaration to which the application relates, is satisfied that –
(a) the issue of the declaration, or the grant of an interlocutory or interim injunction, would result in a significant delay to the procurement to which the contravention, or proposed contravention, relates; and
(b) the making of an order under section 14(1) in relation to the contravention would be a more appropriate remedy for the contravention, or proposed contravention, than the issue of the declaration –
the Supreme Court may refuse to issue the declaration or to grant an interlocutory or interim injunction.
(4) Nothing in this section is to be taken to limit the power of the Supreme Court to issue a declaration or the grant of an interlocutory or interim injunction.
13
Certain limitations on issue or grant of declarations or injunctions not to apply
13 Certain limitations on issue or grant of declarations or injunctions not to apply
(1) The power of the Supreme Court to issue a declaration or to grant an interlocutory or interim injunction under section 10 in relation to a contravention, or a proposed contravention, of an enforceable procurement provision may be exercised –
(a) if the Court is satisfied, to the degree that is applicable to the making of a declaration or an interlocutory or interim injunction, as the case may be, that the agency has engaged in conduct of a kind that constitutes, or may constitute, the contravention or proposed contravention – whether or not it appears to the Court that the agency intends to engage again, or to continue to engage, in conduct of that kind; or
(b) if it appears to the Court that, if a declaration is not issued or an interlocutory or interim injunction is not granted, it is likely that the agency will engage in conduct of that kind –
(i) whether or not the agency has previously engaged in conduct of that kind; and
(ii) whether or not there is an imminent danger of substantial damage to any person if the agency engages in conduct of that kind.
(2) The power of the Supreme Court to issue a declaration under section 10 in relation to conduct that constitutes, or may constitute, a contravention or proposed contravention of an enforceable procurement provision may be exercised –
(a) if the Court is satisfied that the agency has refused or failed to do an act or thing – whether or not it appears to the Court that the agency intends to refuse or fail again, or to continue to refuse or fail, to do that act or thing; or
(b) if it appears to the Court that, if a declaration is not issued, it is likely that the agency will refuse or fail to do that act or thing –
(i) whether or not the agency has previously refused or failed to do that act or thing; and
(ii) whether or not there is an imminent danger of substantial damage to any person if the agency refuses or fails to do that act or thing.
14
Compensation for contravention
14 Compensation for contravention
(1) If a relevant government agency has contravened, is contravening, or is proposing to contravene, in relation to a covered procurement, an enforceable procurement provision, the Supreme Court may, on the application of a supplier whose interests are affected by the contravention or proposed contravention, make an order –
(a) if the relevant government agency is not a corporation sole or a body corporate – against the State; or
(b) if the relevant government agency is a corporation sole or body corporate –against the relevant government agency –
to pay to the supplier, by way of compensation, the relevant amount in respect of the contravention, or proposed contravention, in relation to a covered procurement.
(2) For the purposes of subsection (1) , the relevant amount in respect of a contravention or proposed contravention, in relation to a covered procurement, is an amount that is not more than the sum of –
(a) reasonable expenditure incurred by the supplier in preparing a tender for the procurement; and
(b) reasonable expenditure incurred by the supplier in connection with making a complaint under section 7 about the contravention or proposed contravention; and
(c) reasonable expenditure incurred by the supplier in connection with making a reasonable attempt to resolve the complaint.
Part 4
Miscellaneous
Part 4 Miscellaneous
15
Public interest certificate
15 Public interest certificate
A relevant government agency may issue a written certificate stating that it is not in the public interest for a procurement specified in the certificate to be suspended while –
(a) an application for a declaration under section 10 is being considered; or
(b) a complaint under section 7 is being investigated.
16
Other powers of Supreme Court unaffected
16 Other powers of Supreme Court unaffected
The powers conferred on the Supreme Court under this Act are in addition to, and not in derogation of, any other powers of the Court to grant relief to a party in proceeding before it otherwise than under this Act.
17
Contravention of enforceable procurement provision does not affect validity of contract
17 Contravention of enforceable procurement provision does not affect validity of contract
(1) A contravention of an enforceable procurement provision does not affect the validity of a contract.
(2) For the purposes of subsection (1) , it is immaterial whether the contravention occurred before, at or after the commencement of this Act.
18
Transitional
18 Transitional
This Act, apart from section 17 , does not apply to a contravention of an enforceable procurement provision that occurred before the commencement of this Act.
19
Regulations
19 Regulations
(1) The Governor may make regulations for the purposes of this Act.
(2) The regulations may be made so as to apply differently according to matters, limitations or restrictions, whether as to time, circumstance or otherwise, specified in the regulations.
(3) The regulations may authorise any matter to be from time to time determined, applied or regulated by any person or body specified in the regulations.
(a) the administration of this Act is assigned to the Treasurer; and
(b) the department responsible to the Treasurer in relation to the administration of this Act is the Department of Treasury and Finance.
Source text: opening excerpt
Sourced from Tasmanian Legislation Online (legislation.tas.gov.au), CC BY 4.0.
Part 1 Preliminary
Part 1 Preliminary
1 Short title
1 Short title
This Act may be cited as the Government Procurement Review (International Free Trade Agreements) Act 2019 .
2 Commencement
2 Commencement
This Act commences on a day to be proclaimed.
3 Interpretation
3 Interpretation
(1) In this Act, unless the contrary intention appears –
accountable authority means –
(a) in relation to an entity to which paragraph (a) of the definition of relevant government agency applies – the accountable authority, under the Financial Management Act 2016 , in relation to that entity; and
(b) in relation to an entity to which paragraph (b) or (c) of the definition of relevant government agency applies –
(i) if the entity is specified in Part 2 of Schedule 1 to theFinancial Management Act 2016 – the accountable authority, under the Financial Management Act 2016 , in relation to that entity; or
(ii) if subparagraph (i) does not apply in relation to the entity – the person specified in an order under section 4 to be the accountable authority in relation to that entity;
applicable international procurement agreement means an international agreement that –
(a) applies to procurements by Australian Governments; and
(b) the State has agreed with the Commonwealth to apply to Tasmania;
covered procurement means a procurement to which an enforceable procurement provision applies;
enforceable procurement provision – see section 5 ;
excluded category means –
(a) health and welfare services; and
(b) education services; and
(c) advertising services; and
(d) plasma fractionation services; and
(e) any goods and services specified in an enforceable procurement provision to be an excluded category for the purposes of this paragraph;
goods includes a right, interest or thing that is legally capable of being owned;
procurement, in relation to goods and services, means the process of acquiring goods and services by –
(a) identifying the need to purchase goods and services; and
(b) selecting suppliers for goods and services –
and includes the disposal of goods that are unserviceable or no longer required but does not include any process, or part of a process, in relation to goods and services within an excluded category;
public interest certificate, in relation to a procurement, means a certificate issued under section 15 in relation to the procurement;
relevant government agency means –
(a) an entity specified in Part 1 of Schedule 1 to theFinancial Management Act 2016 ; and
(b) an entity, to which paragraph (a) does not apply, that is within a class of entities that is specified in an applicable international procurement agreement as a class of entities to which that agreement is to relate; and
(c) an entity declared in an order under section 4 to be a relevant government agency for the purposes of this Act –
and includes a person acting on behalf of such an entity;
supplier means a person who supplies, or could supply, goods and services.
(2) A reference in this Act to goods and services includes a reference to –
(a) goods or services; and
(b) physical objects and intangibles such as intellectual property, contract options or goodwill; and
(c) construction and works –
but does not include real property.
4 Orders may declare relevant government agencies and accountable authorities
4 Orders may declare relevant government agencies and accountable authorities
(1) The Governor, by order, may declare a person, statutory authority or entity to be a relevant government agency for the purposes of this Act.
(2) The Governor, by order, may declare a person to be, for the purposes of this Act, the accountable authority of a relevant government agency specified in the order, if there is not an accountable authority in relation to the entity by virtue of paragraph (a) of the definition of accountable authority in section 3(1) or paragraph (b)(i) of that definition.
5 Enforceable procurement provisions
5 Enforceable procurement provisions
(1) Treasurer's Instructions made under the Financial Management Act 2016 for the purpose of giving effect to applicable international procurement agreements may include or refer to guidelines, made by the Secretary of the Department of Treasury and Finance, that are specified in those Treasurer's Instructions to be enforceable procurement provisions for the purposes of this Act.
(2) Guidelines referred to in subsection (1) may specify that they apply to a relevant government agency even though the agency is not otherwise required under the Financial Management Act 2016 to comply with the Treasurer’s Instructions that include or refer to the guidelines.
6 Act binds Crown
6 Act binds Crown
This Act binds the Crown in right of Tasmania and, so far as the legislative power of Parliament permits, in all its other capacities.
Part 2 Complaints
Part 2 Complaints
7 Supplier may make complaint
7 Supplier may make complaint
(1) A supplier who has reason to believe that a relevant government agency has engaged, is engaging, or is proposing to engage, in relation to a covered procurement, in conduct in contravention of an enforceable procurement provision may, if the interests of the supplier are affected by the conduct or proposed conduct, make to the accountable authority of the relevant government agency a written complaint about the conduct.
(2) A supplier may withdraw a complaint made by the supplier under subsection (1) .
8 Investigation of complaint
8 Investigation of complaint
(1) If a supplier makes a complaint under section 7 to the accountable authority of a relevant government agency, the accountable authority must –
(a) investigate the conduct that is the subject of the complaint; and
(b) prepare a report in relation to the investigation.
(2) The accountable authority of the relevant government agency to which a complaint is made may discontinue the investigation in relation to the complaint if –
(a) the supplier withdraws the complaint; or
(b) the supplier informs the accountable authority that the supplier considers the complaint to be resolved; or
(c) in proceedings instituted under this Act in the Supreme Court in relation to the conduct that is the subject of the complaint, the Supreme Court makes either of the following findings:
(i) that the conduct was in contravention, in relation to a covered procurement, of an enforceable procurement provision;
(ii) that the conduct was not in contravention, in relation to a covered procurement, of an enforceable procurement provision.
(3) If –
(a) proceedings are instituted under this Act in the Supreme Court in relation to conduct that is the subject of the complaint; and
(b) the continuation of the investigation would be likely to result in prejudice to the proper administration of justice –
the accountable authority must discontinue the investigation.
9 Suspension of procurement where complaint made
9 Suspension of procurement where complaint made
(1) If –
(a) a supplier makes under section 7 a complaint to the accountable authority of a relevant government agency about conduct in relation to a procurement; and
(b) when the complaint is made, there is no public interest certificate in relation to the procurement –
the accountable authority must suspend the procurement until the relevant time.
(2) For the purposes of subsection (1) , the relevant time is the earliest of the following times:
(a) the time, if any, when the supplier informs the accountable authority that the supplier considers the complaint in relation to the conduct to be resolved;
(b) the time when the supplier withdraws the complaint, if at all;
(c) the time, if any, when the accountable authority issues a public interest certificate in relation to the procurement;
(d) the time, if any, when the Supreme Court, in proceedings under this Act in relation to the conduct, makes either of the following findings:
(i) that the conduct was in contravention of an enforceable procurement provision;
(ii) that the conduct was not in contravention of an enforceable procurement provision.
Part 3 Declarations, Injunctions and Compensation
Part 3 Declarations, Injunctions and Compensation
10 Declarations and injunctions
10 Declarations and injunctions
(1) If a relevant government agency has engaged, is engaging, or is proposing to engage, in conduct in contravention, in relation to a covered procurement, of an enforceable procurement provision, the Supreme Court may, on the application of a supplier whose interests are affected by the conduct or proposed conduct, declare that the conduct is or would be in contravention of the enforceable procurement provision.
(2) If –
(a) a relevant government agency has refused or failed, is refusing or failing, or is proposing to refuse or fail, to do an act or thing; and
(b) the refusal or failure is or would be conduct in contravention, in relation to a covered procurement, of an enforceable procurement provision –
the Supreme Court may, on the application of a supplier whose interests are affected by the refusal or failure, declare that the conduct is or would be in contravention of the enforceable procurement provision.
(3) Pending determination of an application under subsection (1) or (2) in relation to a relevant government agency, the Supreme Court may grant an interlocutory or interim injunction restraining the agency from engaging or proposing to engage in conduct that is or would be in contravention of an enforceable procurement provision.
(4) If the relevant government agency is not a corporation sole or body corporate, the interlocutory or interim injunction may be addressed to the accountable authority in relation to the agency.
(5) The Supreme Court may discharge or vary an interlocutory or interim injunction granted by it under this section.
11 Limitation on power to issue declaration
11 Limitation on power to issue declaration
(1) The Supreme Court must not issue a declaration under section 10 in relation to a contravention, or a proposed contravention, in relation to a covered procurement, by a relevant government agency unless –
(a) the Court is satisfied that the applicant for the declaration has made a complaint under section 7 in relation to the contravention or proposed contravention; and
(b) if the Court considers that it would have been reasonable for the applicant to have attempted to resolve the complaint – the Court is satisfied that the applicant has made a reasonable attempt to resolve the complaint.
(2) The Supreme Court must not issue a declaration under section 10 in relation to a contravention that has occurred unless the Court is satisfied that the application for the declaration was made –
(a) within 10 days after the later of –
(i) the day on which the contravention occurred; or
(ii) the day on which the applicant became aware, or ought reasonably to have become aware, of the contravention; or
(b) within a longer period that the Court allows.
(3) The Supreme Court must not issue a declaration under section 10 in relation to a contravention that is occurring unless the Court is satisfied that the application for the declaration was made –
(a) within 10 days after the day on which the applicant became aware, or ought reasonably to have become aware, of the contravention; or
(b) within a longer period that the Court allows.
(4) The Supreme Court must not issue a declaration under section 10 in relation to a proposed contravention unless the Court is satisfied that the application for the declaration was made –
(a) within 10 days after the day on which the applicant became aware, or ought reasonably to have become aware, of the proposed contravention; or
(b) within a longer period that the Court allows.
(5) The Supreme Court must not allow a longer period under subsection (2)(b) , subsection (3)(b) or subsection (4)(b) , unless the Court is satisfied that –
12 Determination of application for declaration where alternative remedy of compensation applied for
12 Determination of application for declaration where alternative remedy of compensation applied for
(1) Subsection (2) applies to an application under section 10 to the Supreme Court for a declaration made by a supplier in respect of a contravention, or a proposed contravention, in relation to a covered procurement, if –
(a) the supplier has made an application for an order under section 14 in relation to the contravention or proposed contravention; and
(b) there is a public interest certificate in relation to the procurement; and
(c) the procurement has not reached the stage where a contract, or other arrangement, in relation to the covered procurement has been entered into with a supplier.
(2) If this subsection applies to an application in respect of a contravention, or a proposed contravention, in relation to a covered procurement, the Supreme Court must consider –
(a) whether the issue of the declaration, or the grant of an interlocutory or interim injunction, would result in a significant delay to the covered procurement; and
(b) if so, whether the making of an order under section 14(1) in relation to the contravention would be a more appropriate remedy for the contravention, or proposed contravention, tha
This is an opening excerpt, not the complete document.
Complaints, investigation and suspension mechanics: A supplier whose interests are affected may make a written complaint to the accountable authority if they have reason to believe the agency has engaged, is engaging, or is proposing to engage in conduct contrary to an enforceable procurement provision (section 7). On receiving a complaint, the accountable authority must investigate and prepare a report (section 8(1)). While a complaint is outstanding and no public interest certificate exists, the accountable authority must suspend the procurement until resolution or specified events occur (section 9). The accountable authority may discontinue an investigation if the supplier withdraws or considers the complaint resolved, or if related Supreme Court proceedings lead to a determinative finding, or if continuing the investigation would prejudice proper administration of justice (section 8(2)-(3)).
Judicial relief and limitations: Suppliers can apply to the Supreme Court for declarations and interlocutory or interim injunctions about contraventions or proposed contraventions of enforceable procurement provisions (section 10). The Court must not issue a declaration unless the applicant made the statutory complaint and, if the Court considers it reasonable, the applicant attempted to resolve the complaint (section 11(1)). The Act places tight time limits on applications to the Court for contraventions, current contraventions and proposed contraventions (section 11(2)-(4)), subject to extensions only where the applicant's delay is attributable to reasonable attempts to resolve the complaint or there are special circumstances (section 11(5)). The Court is given discretion to decline declarations where issuing one or an injunction would significantly delay the procurement and an order for compensation would be a more appropriate remedy (section 12).
Remedies and limits: The Court may order compensation against the State or a corporate agency, but the recoverable "relevant amount" is limited to reasonable tender preparation expenditure, complaint-related expenditure and reasonable expenditure in attempting to resolve the complaint (section 14). The Act also makes clear that a contravention does not affect the validity of a contract (section 17), and that, except for the contract-validity rule, the Act does not apply to contraventions occurring before commencement (section 18).
Administrative instruments and control: The Governor may make regulations (section 19), and while the Act binds the Crown (section 6), its administration is assigned to the Treasurer and the Department of Treasury and Finance until other arrangements are made (section 20). Overall, the main concepts form a regime where administrative implementing instruments define the substantive procurement obligations, suppliers have a statutory right to complain and seek court relief, accountable authorities have investigation and suspension duties, and the Supreme Court has declaratory, injunctive and limited compensatory powers subject to procedural constraints.
Other stakeholders: Entities and activities explicitly excluded from the procurement definition will be unaffected by the Act in respect of those excluded categories: health and welfare services, education services, advertising services, plasma fractionation services, and goods and services that an enforceable procurement provision specifies as excluded (section 3). The Act also does not apply to contraventions occurring before commencement, except that a contract's validity is preserved for pre-commencement contraventions (section 18 and section 17). That limits retrospective exposure.
In short, accountable authorities and agencies carry statutory duties and potential financial exposure (in the form of ordered compensation), suppliers gain complaint and judicial routes with the power to suspend procurements, and officials who shape Treasurer's Instructions and Secretary-specified guidelines determine what procurement rules will be enforceable. The State remains legally bound and may be ordered to pay compensation in the prescribed circumstances.
Treasurer/Secretary powers: Substantive procurement obligations become "enforceable procurement provisions" through Treasurer's Instructions and Secretary-specified guidelines made under the Financial Management Act framework for the purpose of giving effect to applicable international procurement agreements (section 5(1)). Guidelines so specified can be made to apply to agencies not otherwise required to comply with the Treasurer's Instructions (section 5(2)). That gives the Treasurer and Secretary operational control over the content and scope of enforceable procurement provisions.
Governor and regulation powers: The Governor may by order declare additional relevant government agencies and accountable authorities (section 4). The Governor may make regulations for the Act's purposes, with provision for different application by time or circumstance and authorising matters to be determined by persons or bodies specified in the regulations (section 19). Until other arrangements are in place, administration lies with the Treasurer and the Department of Treasury and Finance (section 20). The Act binds the Crown (section 6).
Constraints and limits on relief: Compensation is limited in scope to reasonable expenditure in tender preparation, complaint-related expenditure and reasonable costs of attempts to resolve the complaint (section 14(2)). A contravention does not affect the validity of a contract (section 17). The Act does not apply to contraventions before commencement, apart from the savings about contract validity (section 18).
In effect, accountable authorities must investigate and may be required to suspend procurements; suppliers have process rights but must meet complaint and time-limit prerequisites to pursue Court relief; the Treasurer and Secretary determine what rules are enforceable via administrative instruments; the Governor and regulations can adjust institutional coverage; and the Court has declaratory, injunctive and limited compensatory powers subject to statutory constraints.
Contract stability and Crown binding: The Act expressly states that a contravention of an enforceable procurement provision does not affect the validity of a contract (section 17). The Act binds the Crown in right of Tasmania (section 6). These two provisions mean that the State cannot be compelled to invalidate contracts in consequence of contravention, and potential monetary exposure is channelled through section 14's limited compensation regime, rather than orders voiding contracts.
Regulatory reach: Enforceable procurement provisions are created by Treasurer's Instructions and Secretary-specified guidelines (section 5). That makes the content of enforceable norms subject to administrative rule-making and extension to agencies otherwise outside the Treasurer’s Instruction regime (section 5(2)). Regulations under section 19 may add further procedural or substantive implementation detail.
In short, enforcement is civil and court-centred, with administrative suspension mechanics and tight judicial procedural controls. Remedies are declaratory, injunctive and narrowly compensatory. There are no criminal penalties or broad damage exposures in the Act itself. The binding of the Crown and section 17's preservation of contract validity limit the forms of relief available against public contracting decisions.
Judicial process and Supreme Court powers: The Act routes enforcement to the Supreme Court for declarations, injunctions and compensation (Part 3). Section 16 clarifies that the Act's powers are additional to other powers of the Supreme Court to grant relief in proceedings outside the Act. That means affected parties may have alternative judicial avenues or remedies outside this Act, and the Court retains its general jurisdictional powers.
Crown binding and contractual law: Section 6 binds the Crown in right of Tasmania, meaning the Crown cannot rely on sovereign immunity under this Act's enforcement architecture. Section 17 states that contraventions do not affect the validity of a contract, which interacts with general contract law: a contract entered into in the face of a contravention remains valid and enforceable. Section 18 clarifies non-retrospectivity, except for preservation of contract validity for pre-commencement contraventions. Therefore, general contract annulment or rescission doctrines are constrained in the procurement context by this Act’s preservation of contract validity.
Regulations and delegated legislation: Section 19 authorises the Governor to make regulations, including regulations that apply differently by time or circumstance and regulations that authorise matters to be determined by specified persons or bodies. That creates potential for delegated instruments to interact with both the Treasurer's Instructions and the administrative processes required by the Act.
Interaction summary: The Act is a procedural overlay that imports substantive content from Treasurer's Instructions and Secretary-specified guidelines made under the Financial Management Act 2016. Its procedural prerequisites and remedies interact with Supreme Court jurisdiction and general contract law by restricting contract invalidation and channeling public accountability into investigative duties, procurement suspension, judicial relief and limited compensation. Administrative orders (Governor’s orders, regulations, and Administrative Arrangements Act orders) can calibrate which entities are in scope and who administers the Act. Parties should therefore consult the Financial Management Act 2016 instruments and any Treasurer's Instructions or Secretary's guidelines that the State has specified as enforceable procurement provisions, since the Act’s substantive effect depends on those instruments (section 5).
What the Act itself records: The Act records no past amendments in the material supplied. It does include cross-references to the Financial Management Act 2016 and the Administrative Arrangements Act 1990, and delegates substantive policy content to Treasurer's Instructions and Secretary's guidelines (section 5), thereby making its operational effect contingent on those other instruments. Any practical "amendment" to how the Act works is therefore likely to come through changes to those instruments, Governor's orders under section 4, or regulations under section 19, unless Parliament enacts an amendment to this Act.
Practical note when tracking amendments: Because enforceable procurement provisions are supplied by delegated instruments and because the Act contemplates administrative orders that can alter the set of relevant government agencies and accountable authorities, practitioners should monitor (1) amendments to this Act in Parliament, (2) regulations made under section 19, (3) orders made by the Governor under section 4, (4) Treasurer's Instructions and Secretary-specified guidelines under the Financial Management Act 2016, and (5) Administrative Arrangements Act orders reallocating administration. The Act’s structure concentrates substantive rule-change capacity outside this Act’s primary text.
Compensation scope and quantification: Section 14 limits recoverable compensation to reasonable tender preparation costs and complaint-related costs. Disputes will arise over what is "reasonable", whether particular expenses are compensable, and whether suppliers have the necessary documentary evidence. The Act’s limit on heads of recoverable loss will shape litigation strategies and valuation arguments in any compensation claim.
No historical decisions in the text: The supplied Act text contains no case law references, outcomes, or examples of litigated matters. Section 16 preserves the Court’s other powers to grant relief outside the Act, which means parties might combine Act-based claims with common-law or equitable causes of action in other proceedings, but again the Act text contains no litigation history to record.
Practical implication: Because the Act channels disputes into the Supreme Court and prescribes procedural preconditions and 10-day time bars, early and rapid litigation activity is likely where suppliers seek injunctions. Agencies may assert public interest certificates and argue for compensation instead of injunctive relief. The Act’s litigation architecture therefore defines a tight, high-tempo enforcement environment even though no actual litigation history is recorded in the Act as provided.
Potential expansion by order or regulation: The Governor may declare additional relevant government agencies and accountable authorities (section 4). Regulations can tailor application by time or circumstance and authorise matters to be determined by others (section 19). The set of covered entities and operational rules can therefore change by executive instruments; practitioners must monitor such orders and regulations.
Investigation discontinuation and prejudice to administration of justice: The accountable authority must discontinue investigations if continuation would likely prejudice the proper administration of justice in related Supreme Court proceedings (section 8(3)). That can create strategic considerations for suppliers and agencies: timing a complaint to avoid prejudicial effects may influence whether an investigation proceeds. The Act therefore enables tactical interaction between administrative and judicial processes.
Extension-of-coverage power: Section 5(2) allows guidelines specified to be enforceable procurement provisions to apply to a relevant government agency even though the agency is not otherwise required under the Financial Management Act to comply with the Treasurer's Instructions. This means an agency that would otherwise be outside the Treasurer's Instructions may be brought within the reach of enforceable procurement provisions by the guidelines mechanism. Agencies should check whether that has occurred.
Administration allocation pending orders: Until the Governor makes orders under the Administrative Arrangements Act, the Treasurer administers the Act (section 20). If responsibilities transfer later, parties must track any changes in administrative responsibility.
No criminal penalties: The Act provides only civil remedies and administrative duties; there are no criminal sanctions or broad pecuniary penalties for agencies in the text. Parties seeking broader sanctions cannot rely on this Act to provide them.
These "gotchas" are explicit in the Act’s text. They concentrate on procedural timing, the suspension mechanism, limited heads of compensation, the administrative origin of enforceable procurement provisions, and the Governor/Regulation powers that can change actors and coverage. Each one affects strategy and risk allocation in procurement disputes.
Administrative oversight: Keep an eye on Governor’s orders and regulations under sections 4 and 19 that may alter who is a relevant government agency or expand obligations. Also monitor Treasurer's Instructions and Secretary guidelines, since these determine enforceable procurement provisions (section 5).
For suppliers and bidders
Monitor enforceable procurement provisions: Because the rules that can be enforced against agencies are defined by Treasurer's Instructions and Secretary-specified guidelines (section 5), ensure you review those instruments to determine what obligations agencies must follow. You cannot rely solely on the Act’s text to identify substantive procurement rules.
Make complaints promptly and in writing: If you believe an enforceable procurement provision is being contravened, make a written complaint to the accountable authority (section 7(1)). The complaint sets in motion the investigation, mandatory suspension in the absence of a public interest certificate (section 9), and creates the precondition for Court applications (section 11). Keep copies and proof of delivery.
Document attempts to resolve: If an attempt to resolve the complaint is reasonable, document it carefully. Section 11(1) may require a reasonable attempt to resolve the complaint before the Court issues a declaration, and extensions to time limits are available where delay is attributable to resolution attempts (section 11(5)(a)). Evidence of reasonable negotiations will preserve judicial remedies.
Preserve evidence of costs: If you anticipate seeking compensation under section 14, maintain robust records of reasonable expenditure on tender preparation, complaint-related costs, and expenditure spent on attempting resolution. The Act limits compensation to those heads (section 14(2)).
Act fast on Court applications: Time limits for Court applications are tight. For past contraventions an application must be made within 10 days after the later of the contravention date or the date of becoming aware; similar 10-day rules apply for ongoing and proposed contraventions (section 11(2)-(4)). Failing to file within these periods risks losing the right to declaratory or injunctive relief. Seek legal advice immediately upon forming the belief of a contravention.
Expect suspension outcomes and public interest certificates: A complaint will typically trigger procurement suspension unless the accountable authority issues a public interest certificate (section 9 and section 15). Strategise whether suspension is the outcome you want, and prepare to contest a public interest certificate if you believe it is misused; however, be ready to litigate quickly given section 12’s direction that courts weigh procurement delay and may prefer compensation orders where appropriate.
Consider remedies realistically: The Act does not allow contract invalidation (section 17) and limits compensation to the specific heads in section 14. If your commercial aim is to prevent contract award, plan quickly to seek interlocutory relief; if your aim is monetary recovery, document eligible costs.
Cross-cutting compliance activities
Governance and training: Agencies should train procurement officers about the complaint mechanism, suspension duty, public interest certificates, and the role of Treasurer's Instructions and guidelines. Suppliers should train commercial teams and bid managers to spot and document potential enforceable-provision breaches and to make timely complaints.
Legal oversight of delegated instruments: Monitor the development and specification of enforceable procurement provisions in Treasurer's Instructions and Secretary guidelines (section 5). Changes to these instruments change the legal standards that will be enforced.
Administrative record discipline: Both agencies and suppliers should maintain contemporaneous records concerning procurement processes, communications, tendered documents, and costs. Those materials will be central to investigations, Court applications, and compensation quantification.
Timetable management: Because complaints can suspend procurement and 10-day Court time bars apply, build escalation protocols and rapid legal advice channels to respond to complaints or to prepare litigation within statutory windows.
Implementing these steps aligns domestic administrative practice with the Act’s procedural and remedial framework as laid out in sections 5, 7-9, 10-14, 15, and 20.
(a) the applicant's failure to make the application within the 10-day period referred to in subsection (2)(a) , subsection (3)(a) , or subsection (4)(a) , respectively, is attributable to the applicant's reasonable attempt to resolve the complaint referred to in subsection (1)(a) ; or
(b) there are special circumstances that warrant allowing a longer period.