Updated Commonwealth Procurement rules commence 17 November 2025 – What do you need to know?

While the revised Commonwealth Procurement Rules place a strong focus on enhancing the competitiveness of Australian businesses, there are several other important changes that warrant your attention.

On 17 November 2025, changes to the Commonwealth Procurement Rules (CPRs) will take effect. The changes are primarily to improve Australian businesses (including small to medium enterprises (SMEs)) access to Commonwealth procurement opportunities.

The changes will not be applied retrospectively and will apply only to approaches to market that are released on or after 17 November 2025. It is therefore essential that Commonwealth entities ensure they have a comprehensive understanding of the changes and update their procurement policies and procedures.

Changes to the CPRs

Commonwealth entities should be aware of the following material changes to the CPRs:

• secondments within governments: amendments that clarify that the CPRs do not apply to secondments within and between government entities (including state, territory and local governments) (paragraph 2.9i).
• increases to the thresholds: the procurement thresholds have been amended for non-construction procurements such that:
  • the threshold for application of the CPRs for specified prescribed corporate Commonwealth entities is now $125,000 (which is increased from $80,000) (paragraphs 3.10 and 3.11); and
  • non-corporate Commonwealth entities are now required to comply with Division 2 of the CPRs for procurements with an estimated value of $125,000 (which is increased from $80,000) (paragraph 9.7).
• emphasis on supplier conduct: ethical conduct is now a factor in assessing value for money (paragraph 4.5c) and updates to Division 1 of the CPRs emphasise the requirement to consider tenderer's regulatory practises (paragraph 6.6). These amendments align with the Commonwealth's increased focus on supplier conduct in recent years.
• encouraged to procure from Australian businesses and SMEs: the most significant change for non-corporate Commonwealth entities (in paragraphs 5.4 and 5.5) is that for procurements:
  • valued between $10,000 and $125,000 (for non construction procurements) or $10,000 and $7.5 million (for construction procurements) entities must only invite Australian businesses to make submissions. Importantly, the Indigenous Procurement Policy must still be applied where relevant (paragraph 5.4a); and
  • from the Management Advisory Service Panel, the People Panel or any standing offer managed by the Digital Transformation Agency which are below a value of $125,000 non-corporate Commonwealth entities must only invite SMEs to make submissions.
    
    While there is the ability to undertake other procurement methods, if no submission represents value for money or an official decides (and documents) that a different procurement approach is appropriate, these changes highlight the Government's focus on prioritising Australian businesses access to government procurements and contracts.
• sharing of confidential information: clarifications have been made regarding the sharing of confidential information, which confirm that submissions and sensitive details provided during tendering may be shared within the Commonwealth for compliance monitoring and other legitimate, non-commercial purposes (paragraph 7.25a).
• standing offers: updates encourage officials to approach multiple suppliers from standing offers (paragraph 9.14).
• new rules on negotiations: the new paragraphs 10.18 and 10.19 in Division 2 sets out when and how negotiations with tenders may be conducted. While the paragraphs intend to clarify the operation of negotiations, the amendments will require updates to procurement documentation to ensure negotiations are undertaken in accordance with the CPRs.

Action Commonwealth entities should take

Commonwealth entities must continue to be diligent in understanding and complying with the CPRs and review and update their procurement policies and procedures to ensure they reflect the changes effective on 17 November 2025.

If you would like more information about the changes to the CPRs or require support in reviewing and updating your procurement policies and procedures ahead of 17 November 2025, please don’t hesitate to contact us.