Back

Low-value contracts

We’ve made it easier to buy goods and services (including construction) that are considered low-value contracts.

On this page

You can fast track low-value contracts in many circumstances.
This policy is designed to help SMEs, regional and Aboriginal businesses.
You still need to show value and make sure any contracts match market rates.

There are rules for low-value contracts

We’ve made it easier for you to fast-track procurements under certain thresholds.

This is especially true when you buy from small to medium enterprises (SMEs).

Rules still apply and you must meet certain requirements depending on the value and nature of the contract, who you’re buying from and the level of risk involved.

Please note, all values below exclude GST.

Goods and services up to $30,000

If your agency is unaccredited you can choose a supplier based on receiving just one written quotation. You still need to use whole-of-government contracts and mandated schemes where they apply.

If your agency is accredited, you should follow your agency’s rules.

Goods and services up to $150,000

You can buy directly from an regional business, even if the goods or services are available on a whole-of-government contract or mandated scheme.

Goods and services up to $250,000

You can buy directly from a SME even if the goods or services are available on a whole-of-government contract or mandated scheme.

You can negotiate directly with Aboriginal businesses up to $250,000

For contracts valued up to $250,000, you can negotiate directly with Aboriginal businesses.

This applies equally to contracts for goods and services, or construction contracts.

You can negotiate directly with Aboriginal businesses even where the goods or services are available on a whole-of-government contract or mandated scheme.

You still need to demonstrate and achieve value for money – for example, by confirming the costs are in line with normal market rates.

Read more about supporting Aboriginal businesses.

You can ask an Australian disability enterprise for a quote

You can buy goods and services, including construction, of any value from an Australian disability enterprise so long as you get one written quote.

Australian disability enterprises are businesses set up to provide employment for people with disabilities.