Glossary

Procurement Threshold

The contract value at which the prescriptive rules in Division 2 of the CPRs switch on.

From 17 November 2025 the threshold is $125,000 including GST for non-corporate Commonwealth entities, $400,000 for some prescribed corporate Commonwealth entities, and $7.5 million for construction services. Below the threshold, only Division 1 applies and a buyer can approach the market however it judges best. At or above it, Division 2 applies and the buyer must normally run an open approach to market on AusTender, allow the minimum response time, and meet the reporting rules, unless a limited tender condition or an Appendix A exemption applies. The value tested is the estimated maximum value of the whole procurement including every option and extension, and splitting a procurement to stay under the threshold is prohibited.

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