The Australian Government buys billions of dollars of goods and services each year, and overseas businesses can compete for much of it. But the rules changed on 17 November 2025, and smaller contracts are now mostly reserved for Australian businesses. This guide explains what's open to you, what isn't, and how to prepare. If you're new to government work, start with why sell to government.

Can overseas businesses bid?

Yes. The Department of Finance says plainly that you don't have to be Australian to respond to an approach to market. The Commonwealth Procurement Rules (opens in a new tab) (CPRs) require suppliers to be treated equitably based on their commercial, legal, technical and financial abilities (paragraph 5.3). For procurements at or above the procurement threshold, suppliers must not be discriminated against because of their size, degree of foreign affiliation or ownership, location, or the origin of their goods and services (paragraph 10.2).

Smaller contracts are now reserved for Australian businesses

Since 17 November 2025, non-corporate Commonwealth entities (departments and most agencies) must invite only Australian businesses for procurements valued at or above $10,000 and below the relevant procurement threshold (CPR paragraph 5.4). The thresholds, including GST, are:

  • $125,000 for goods and services
  • $7.5 million for construction services

Under the CPRs, an "Australian business" (including any parent business) must have 50% or more Australian ownership or be principally traded on an Australian equities market, be an Australian tax resident, and have its principal place of business in Australia. For this rule only, New Zealand businesses also count.

There are limited exceptions. The rule doesn't apply to buying from standing offers (panels). Buyers may go to market more broadly if no Australian business responds or offers value for money, or if an official documents why approaching Australian businesses isn't appropriate. Where the Indigenous Procurement Policy applies, it comes first.

The honest takeaway: if your business is foreign-owned or based overseas, contracts below these thresholds are largely closed to you. Larger contracts are your realistic opportunity.

Larger contracts and free trade agreements

Above the threshold, the stricter "Division 2" rules apply, including non-discrimination and, generally, open tendering. Australia has government procurement commitments under the WTO Agreement on Government Procurement (opens in a new tab) (in force for Australia since 5 May 2019) and under free trade agreements including those with the United States, the United Kingdom, Singapore, Japan, Korea, Chile, Peru, Hong Kong, and the CPTPP. There is also the Australia and New Zealand Government Procurement Agreement.

You don't need to read the treaties to bid. The CPRs say these obligations have been built into the rules (paragraph 2.15). Each agreement has its own coverage and thresholds, which are listed on the DFAT website (opens in a new tab).

Exemptions to know about

Some purchases are exempt from the Division 2 rules, so they may not be openly tendered. These are listed in CPR Appendix A and include research and development services, some defence intelligence purchases, labour hire, purchases from Indigenous SMEs, and purchases of up to $500,000 from SMEs (item 17). The CPRs also don't apply to the extent an entity applies measures needed to protect essential security interests or human health (paragraph 2.6). Defence and security work often has extra requirements, so check each tender carefully.

For larger procurements (over $1 million, or $7.5 million for construction), buyers must also consider the economic benefit to the Australian economy (paragraph 4.7).

Practical steps

  1. Register on AusTender. Registration (opens in a new tab) is free and lets you receive alerts, download documents and lodge responses. An ABN isn't one of the requirements to register. See how to become a government supplier.
  2. Think about an ABN early. Finance strongly recommends one (opens in a new tab). Without an ABN, payers must withhold part of each payment for tax. You also need an ABN to register for GST. Check your situation with the Australian Business Register (opens in a new tab) and the ATO (opens in a new tab).
  3. Read every notice closely. Approaches to market set out conditions for participation, such as insurance, security clearances and standards. Requirements vary by tender. See how to read a contract notice.
  4. Know how you'll be paid. Under the Supplier Pay On-Time or Pay Interest Policy (opens in a new tab), payment terms are currently 20 calendar days, or 5 calendar days with Peppol eInvoicing. From 1 January 2027, they become 10 business days for all invoices.

How Contract Horizon helps

Commonwealth contracts of $10,000 or more must be published on AusTender (CPR paragraph 7.18), and those contract notices include start and end dates. When a large contract is due to end, a re-tender often follows. Contract Horizon tracks those end dates so you can see opportunities coming 3–12 months ahead. That gives you time to find a local partner, sort out an ABN, and prepare a strong bid.

Contract Horizon is an independent service and isn't affiliated with the Australian Government.

This guide is general information only and isn't legal, tax or procurement advice. Rules change, so always check the current Commonwealth Procurement Rules and the tender documents, and get professional advice for your situation. Last checked: 5 November 2026.