Government Procurement Amendment Act 2026

Government Procurement Amendment Act 2026

From 1 July 2026, the ACT Government has introduced changes to make it easier for local businesses to work with government.

The updates simplify low‑value, low‑risk procurement processes while keeping them transparent and focused on value for money for the Territory. They also reduce administrative requirements for engaging small and medium enterprises and Aboriginal and Torres Strait Islander businesses.

If you are interested in learning more, please contact the Procurement ACT service desk at ProcurementACT@act.gov.au or (02) 6207 9000, or register as a supplier on Tenders ACT here to receive further updates.

Frequently Asked Questions

This information covers key changes made by the Government Procurement Amendment Act 2026 (Amendment Act)

• The Amendment Act came into effect on 1 July 2026.
• The Amendment Act makes changes to the Government Procurement Act 2001 (Act) and Government Procurement Regulation 2007(Regulation)to deliver a range of practical improvements. The changes will ensure the Act and Regulation continue to support consistent, efficient and accountable procurement outcomes, so government spending delivers real value for the community.

How will the changes affect suppliers responding to ACT Government procurements?

• The changes in the Amendment Act improve supplier participation in ACT Government procurement opportunities, particularly for procurements under $500 and limited tender procurements.
• Limited tender procurements are procurements:
  • for goods and services that are not related to construction work with a price between $25,000 (including GST) and $500,000 (including GST); and
  • for goods and services that are related to construction work that have an estimated price between $25,000 (including GST) and $1 million (including GST).

How are the requirements for low value procurements changing?

• Under the old law, all procurements needed contracts need to be in writing, regardless of their value and for procurements under $25,000, 1 written quotation was required.
• From 1 July 2026, written procurement contracts will not be required for procurements valued under $500, with only 1 oral quotation being required. A written quotation and procurement contract may still be requested if this is deemed necessary.
• This practical change reduces the administrative requirements placed on suppliers and Territory entities.

How are the requirements for limited tender procurements changing?

• Previously, at least 3 written quotations must be sought for limited tender procurements (unless an exemption applies).
• From 1 July 2026, Territory entities will be able to obtain either:
  • 3 written quotations; or
  • 1 written quotation (commonly referred to as a ‘direct approach’, where a Territory entity can directly approach a suitable business for a quotation) from:
    • a certified Aboriginal or Torres Strait Islander entity; and/ or
    • a small or medium business entity that is also an entity based in the ACT or surrounding region.
• This change makes it easier for Territory entities to procure goods or services from a suitable certified Aboriginal or Torres Strait Islander entity or small or medium enterprise based in the Canberra region.
• Territory entities are still required to demonstrate value for money is achieved through the procurement, regardless of the methodology used.

Are the requirements for open tender procurements changing?

• No. The Amendment Act will not change the requirements for open tender procurements.
• Goods and services procurements valued at least at $500,000 (GST Inclusive) and construction procurements valued at least at $1,000,000 (GST Inclusive) will still be required to be conducted through open tender, unless an exemption is sought.

What key definitions are being changed under the Amendment Act?

• Procurement: a minor refinement to remove an unnecessary word (‘contractual’) that could potentially cause confusion when determining a procurement.
• Confidential text: amended to include an individual’s name, except where they are supplying goods or services in their own name (e.g., as a sole trader). This change supports a balance between an individual’s privacy and making publicly available key information about a procurement contract.
• Entity based in the ACT or surrounding region: updated to reflect the relevant local government areas as currently constituted under New South Wales law.
• Standing-offer arrangement: definition deleted from section 4 of the Regulation, as the definition of that term in the Act also applies to the Regulation.

Are there changes to the procurements requiring Government Procurement Board review?

• The Amendment Act clarifies the procurements that must be reviewed by the Government Procurement Board (Board), but continues to focus on those procurements of a higher scale, scope and risk.
• In addition, the Amendment Act:
  • retains provisions that allow procurements to be referred to the Board for review;
  • clarifies that any chief executive officer of a Territory entity may refer a procurement to the Board; and
  • maintains that procurements that proposes to substantially change the scope or nature of an existing procurement contract require review by the Board, where that change is not expressly provided for in the existing procurement contract.
• These changes strengthen the Board's ability to perform its functions effectively and fulfil its purpose with greater efficiency and strategic focus.

How can suppliers learn more about the Amendment Act changes?

• Information about the changes will be made available on the Procurement ACT website and Tenders ACT.
• If further information is required, please contact Procurement ACT.