Regulation Impact Statement Updates

Official website for publishing regulatory impact analysis information for regulatory decisions announced by the Australian Government, COAG and COAG Councils.

Black-economy - Increasing the integrity of Government procurement

Aust Gov
28th November 2018

Independent Review - Department of the Treasury

On 20 November 2018, the Department of the Treasury released draft procurement connected policy (PCP) guidelines for consultation.

The PCP Guidelines set out key components to increase the integrity of Commonwealth Government procurement to reduce black economy activity in the supply chain. Supply chain integrity can be compromised due to illegal supplier practices that can be unknown to the purchaser at the time of procurement or during the course of the contract.

The procurement connected policy (PCP) guidelines, once finalised, will require businesses who will tender for Australian Government procurements over $4 million (including GST) to provide a Statement of Tax Record from the Australian Tax Office. The Statement of Tax Record will indicate that the business is generally compliant with their tax obligations.

In using the Black Economy Taskforce Final Report in lieu of a Regulation Impact Statement (RIS), the Department of the Treasury certified the Report had undertaken a process and analysis equivalent to a RIS. The Office of Best Practice Regulation (OBPR) does not assess the quality of independent reviews and RIS-like processes used in lieu of a RIS.

The Department of the Treasury is compliant with the Australian Government RIS requirements and consistent with best practice at this stage of the policy development.

The Department of the Treasury estimates the average annual regulatory cost on tenderers applying for a Statement of Tax Record of $5.850 million. The OBPR has agreed with this estimate.

Consultation on the draft PCP Guidelines closes 21 December 2018.

Please note: the Black Economy Taskforce Report is web accessible in PDF only and any accessibility queries should be directed to the Department of the Treasury.

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