The Bill strengthens the Commonwealth procurement rules by banning suppliers who engage in unethical conduct from government contracts and establishing a public register of excluded entities.
It responds to calls for a federal debarment regime—highlighted by the PwC tax leaks scandal and international best practice—and requires the Finance Minister to oversee exclusions, reviews and transparency measures.
The Bill amends the Public Governance, Performance and Accountability Act 2013 (PGPA Act) to prohibit the Commonwealth and prescribed entities from entering procurement contracts with suppliers or tenderers who have engaged in “unethical conduct,” as defined in new section 105BC. It inserts subsection 105B(1A) to require consideration of convictions, pecuniary penalties, poor labour practices, tax avoidance and other conduct that could undermine the integrity of or public confidence in the Commonwealth.
It also adds section 105BA to establish a review process for entities designated as excluded from procurement, and section 105BB to create and maintain a publicly accessible register of excluded suppliers, with mechanisms for correcting information. The Finance Minister must make the necessary legislative instruments within three months of commencement, and may issue transitional rules. The Act commences the day after Royal Assent.
This Bill will reinforce the integrity and transparency of government procurement by ensuring that unethical actors—such as those convicted of serious offences, involved in tax avoidance or poor labour practices—cannot benefit from taxpayer-funded contracts. By aligning Australia with international debarment regimes (for example, the UK and Canada), it helps safeguard public trust, reduce corruption risks and discourage malfeasance.
The creation of a public register of excluded suppliers strengthens accountability by giving civil society and Parliament visibility over which entities are barred and on what grounds, while the review process ensures procedural fairness.[1] Overall, these measures will incentivise higher ethical standards among contractors, protect public resources and improve the effectiveness of government spending.[Judgment]
Procedural fairness refers to the principles of natural justice, including the right to be heard and to seek review.
While promoting integrity is laudable, the Bill’s broad definition of “unethical conduct” risks introducing legal uncertainty and administrative burdens that could slow down procurement and increase costs. The criteria—ranging from recent convictions to “any other conduct” that may harm public confidence—lack clear thresholds, potentially leading to arbitrary exclusions or politicised decision-making.[Judgment]
The additional review and register requirements will impose significant compliance costs on government agencies and private firms, drawing resources away from project delivery. There is also a risk that overseas entities may choose not to tender in Australia due to perceived unpredictability in the exclusion regime, reducing competition and value for taxpayers.[Judgment]
2025-09-04
Senate
Before Senate
POCOCK, Sen Barbara
Unspecified
Anti-Corruption, Democratic Institutions