40Period contract

40 Period contract (1) If a council or local government subsidiary obtains supplies under a period contract for a period that is more than one financial year, the threshold amounts for quotations or tenders are taken to be: (a) the highest cost stated in the contract for any given financial year; or (b) otherwise – the council's or local government subsidiary's highest annual budget for the supply in any given financial year. Example for subregulation (1)(a) A council intends to enter into a contract on 1 January 2022 for maintenance services for $180 000 (exclusive of GST) for 2 years. The contract identifies the costs to be: (a) for 1 January 2022 to 30 June 2022 – $45 000; and (b) for 1 July 2022 to 30 June 2023 – $90 000; and (c) for 1 July 2023 to 31 December 2023 – $45 000. The relevant threshold amount is the amount in paragraph (b). Example for subregulation (1)(b) A council intends to enter into a contract on 1 January 2022 for office cleaning services for 2 years up to a spending limit. There is no fixed cost of the contract and the contract is based on a schedule of rates (which includes an hourly rate for cleaning). The schedule must be converted to a budgeted spend for the 2021-2022, 2022-2023 and 2023-2024 financial years. If the council's highest annual budget for the supply is in 2022-2023, the amount for this financial year is the relevant threshold amount. (2) The threshold amount for subregulation (1)(b) is determined by converting a schedule of rates to an annual budget for the supply.

Local Government (General) Regulations 2021 26