Federal Government Tenders

The Australian Federal Government is the country's largest procurer, publishing tenders through AusTender across all departments and agencies. From defence and infrastructure to IT and professional services, Commonwealth procurement represents billions in annual spending. Federal tenders often have longer timelines and larger contract values than state equivalents.

The Commonwealth Procurement Rules (CPRs) set the framework for all federal government purchasing. Open approaches to market are required for procurements valued above $80,000 for non-corporate Commonwealth entities, and above $400,000 for corporate Commonwealth entities. Construction procurements require open tender above $7.5 million. These thresholds are periodically adjusted and are among the lowest in Australian government procurement, meaning a high volume of opportunities are publicly advertised on AusTender.

To register on AusTender, visit tenders.gov.au and create a free supplier account. You will need your ABN, DUNS number (for some international opportunities), business details, and relevant UNSPSC category codes. AusTender allows you to set up daily email notifications based on category codes, keywords, and specific agencies. The portal publishes open tenders, multi-use lists, requests for information, and contract award notices. Registration also gives access to the forward procurement pipeline published by Commonwealth entities, which provides advance notice of planned procurements.

Federal procurement policy centres on value for money as the core principle, assessed across the whole-of-life cost rather than the lowest upfront price. The Indigenous Procurement Policy (IPP) is one of the most significant programs, setting a target of 3% of Commonwealth contracts by value awarded to Indigenous businesses, with mandatory set-asides for contracts delivered in regions with significant Indigenous populations. The Commonwealth's SME and Startup Procurement Policy requires agencies to ensure SMEs have appropriate opportunities to compete, including simplified tender documentation for lower-value procurements. Whole-of-government arrangements and panels, managed by the Department of Finance, provide efficient pathways for suppliers in common categories such as IT, travel, and professional services.

The federal budget is typically delivered in May, with peak procurement activity from July through November as departments activate new budget measures. Defence procurement follows multi-year cycles aligned with the Defence Capability Plan, with major project milestones driving tender releases. The caretaker period before federal elections (typically lasting several weeks) can slow new procurement activity, and the period immediately after a change of government may see policy-driven shifts in procurement priorities.

Major current procurement pipelines include the AUKUS defence program (nuclear submarines, hypersonic weapons, and quantum technologies), the National Broadband Network upgrades, Services Australia digital transformation, the Inland Rail project, and significant investment in renewable energy and critical minerals processing. The Department of Defence remains the single largest procurer, accounting for a substantial portion of all AusTender activity. The National Disability Insurance Scheme (NDIS) also generates ongoing service delivery procurement at the Commonwealth level.

New suppliers should register on AusTender and set up comprehensive notification preferences across relevant categories. Review the Commonwealth Procurement Rules — understanding the evaluation framework is essential for writing competitive responses. Consider applying for relevant panels and multi-use lists, as these can provide ongoing work without competing for individual tenders. The Department of Finance publishes a Supplier Guide that explains the procurement process in detail. For defence opportunities, registration on the Defence Industry Security Program (DISP) may be required for classified work. Start with smaller contracts to establish a track record and build references within the Commonwealth system. If you are new to government tendering, our guide to government tendering in Australia covers the process end to end.

Key agencies

• AusTender
• Department of Defence
• Services Australia
• Department of Home Affairs

What Federal Government Government typically procures

• Defence systems and platforms (AUKUS, ships, aircraft)
• IT services and digital transformation
• Consulting and professional services
• Cybersecurity and data analytics
• Healthcare and aged care services
• Infrastructure (Inland Rail, NBN upgrades)
• Renewable energy and critical minerals
• Indigenous services and procurement
• Research and innovation services
• Facilities management and base operations