Australia and Victoria are parties to:
- agreements that support free trade between the parties (these agreements are referred to as international agreements
- government procurement agreements, where Australia and a neighbouring country agree to open procurement between the countries
Additional procurement rules apply when either or both of international agreements and government procurement agreements apply.
International agreements
International agreements apply to certain agencies
International agreements apply to some, but not all, Victorian Government agencies.
Agencies that need to apply the additional rules set by international agreements are:
- for goods and services procurement – the agencies listed at Covered entities – international agreements
- for construction procurement – the agencies listed at Agencies that must comply with Government procurement requirements under International Agreements (Construction Instruction 2.1 – Attachment 1)
When International Agreements apply
International agreements apply to those agencies that must apply the additional rules, where the expected cost of a procurement is more than the thresholds listed below, unless the goods, works or services being procured are excluded from the application of international agreements.
The dollar threshold values that define when international agreements apply are reviewed every 2 years. From 1 March 2020, the revised threshold values are:
- for goods or services - $697,000 (inclusive of GST)
- for construction works - $9,819,000 (inclusive of GST)
When international agreements do not apply
The additional rules set by international agreements do not apply to certain procurement:
- for goods and services procurement – the types of procurement listed at Government procurement under international agreements - goods and services procurement guide
- for construction procurement – the types of procurement listed at Complying with International Agreements (Construction Instruction 2.1.2)
Additional rules set by international agreements
The additional rules set by international agreements are:
- for goods and services procurement – the additional rules set out at Government procurement under international agreements - goods and services procurement guide
- for construction procurement – the additional rules set out at Complying with International Agreements (Construction Instruction 2.1 Attachment 2)
Australia New Zealand Government Procurement Agreement
When the Australia New Zealand Government Procurement Agreement applies
All agencies must apply the provisions of the Australia New Zealand Government Procurement Agreement.
The Australia New Zealand Government Procurement Agreement applies to all procurement activity, unless the goods, works or services being procured are excluded from application.
When the Australia New Zealand Government Procurement Agreement does not apply
The additional rules set by the Australia New Zealand Government Procurement Agreement do not apply to certain procurement:
- for goods and services procurement – the types of procurement listed at Government procurement under international agreements - goods and services procurement guide
- for construction procurement – the types of procurement listed at Complying with the Australia New Zealand Government Procurement Agreement (Construction Instruction 2.2)
Additional rules set by the Australia New Zealand Government Procurement Agreement
The additional rules set by the Australia New Zealand Government Procurement Agreement are:
- for goods and services procurement – the additional rules set out at Government procurement under international agreements - goods and services procurement guide
- for construction procurement – the additional rules set out at Complying with the Australia New Zealand Government procurement Agreement (Construction Instruction 2.2)
Domestic dispute resolution
Recent changes to the rules set by international agreements include the requirement for domestic dispute resolution to hear complaints from suppliers. Complaints are heard through arbitration.
When international agreements apply, insert the model arbitration clause – international agreements in request for tender documents.
The model arbitration clause refers to further detail on three issues:
- current 'measures', being the procurement rules that may form the basis for a complaint – refer to Measures implementing procurement requirements of international agreements
- 'relevant jurisdictions' that are current partner countries – refer to Relevant jurisdictions for domestic dispute resolution – international agreements
- the list of available arbitrators – refer to Arbitrators available for dispute resolution under international agreements
Tools and support
Contact your procurement governance unit if you have any questions on international agreements.
Reviewed 23 January 2022