Free Tool
Procurement Threshold Checker
Enter a contract value and buyer type to see whether the procurement sits above or below the relevant threshold, whether Division 2 of the Commonwealth Procurement Rules applies, and what has to be reported on AusTender.
Division 2 of the Commonwealth Procurement Rules applies. Unless an Appendix A exemption or a limited tender condition is met, the buyer must run an open approach to market on AusTender, allow the minimum time for responses, and publish a contract notice.
Every contract over $10,000 inc GST is reported on AusTender within 42 days, whatever the procurement method was. Below threshold does not mean invisible.
The CPRs require the buyer to estimate the maximum value of the whole procurement, including options and extensions. Splitting a contract to dodge a threshold is prohibited.
The Australian Government targets 25 per cent of contracts by value from SMEs under $1 billion, and 40 per cent under $20 million. An SME is an Australian or New Zealand business with fewer than 200 full time equivalent staff.
The Indigenous Procurement Policy sets a value target of 3 per cent for 2025-26, rising 0.25 per cent a year to 4 per cent by 2029-30, with mandatory set-aside rules for some contracts.
Thresholds are those in the Commonwealth Procurement Rules that commenced 17 November 2025: $125,000 for non-corporate Commonwealth entities, $400,000 for prescribed corporate Commonwealth entities, and $7.5 million for construction services. All are GST inclusive, which is why this tool converts your ex GST estimate before comparing. Some prescribed corporate entities sit at $125,000 rather than $400,000, so check the entity in Appendix A. This is general guidance for suppliers, not legal advice.
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