Consultation commenced on strengthening Australian Government procurement processes

THE FEDERAL Government is leading the charge against the black economy by strengthening procurement processes to ensure that contracts are only awarded to businesses which have a good compliance history.

Minister for Revenue and Financial Services, Kelly O'Dwyer, has released a consultation paper on improving the integrity of the Commonwealth procurement process.

As announced in the 2018‑19 Budget, from 1 July 2019, businesses seeking to tender for Australian Government procurement contracts over $4 million (including GST) will be required to provide a statement from the Australian Taxation Office indicating that they are generally compliant with their tax obligations.

Minister O'Dwyer said the Government was acting on the Black Economy Taskforce findings that the supply chain is becoming more complex and competitive and can disadvantage honest businesses.

"In some cases, suppliers may be outbid at the procurement point by those who have unfairly cut costs by not complying with their tax obligations. This puts suppliers that do meet their regulatory obligations at a commercial disadvantage," Minister O'Dwyer said.

"The government is taking the opportunity to level the playing field. The new requirements will not only give businesses a fair go, it will instil public confidence that honest businesses are being awarded government contracts."

Minister O'Dwyer said the Government was looking to implement the changes in a way that minimises the burden on potential suppliers and stakeholders.

The consultation paper is available on the Treasury website and submissions close on 15 June 2018.

Consultation builds on recommendations made by the Black Economy Taskforce in their final report to the Government. The Final Report and the Government's response are available on the Treasury website.

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