RESTRICTED  
 
GPA/ACC/AUS/9  
5 January 2016  
(16-0079)  Page: 1/23  
Committee on Government Procurement  Original: English  
 
  ACCESSION OF AUSTRALIA TO THE AGREEMENT ON GOVERNMENT PROCUREMENT 
COMMUNICATION FROM AUSTRALIA 
The following communication, dated 18 December 2015,  is being circulated at the request of the 
Delegation of Australia. 
 
_______________ 
AUSTRALIA'S RESPONSE TO THE EUROPEAN UNION'S PRELIMINARY QUESTIONS ON 
AUSTRALIA'S INITIAL MARKET ACCESS OFFER 
1  ANNEX 1 - CENTRAL GOVERNMENT ENTITIES 1. Why does Australia not cover all the agencies which are listed on the Australian 
commonwealth website, within those portfolios listed in the Annex I, such as defence, 
education, health, innovation, etc.)? For example, to name some agencies: Australian 
Border Force ( http://www.australia.gov.au/directories/australia/customs ) and the 
Office of the Migration Agents Registration Authority 
(http://www.australia.gov.au/directories/australia/mara ) (in the Immigration and 
Border Protection portfolio agencies), th e Defense Housing Australia, Defence Science 
and Technology Group and Army and Air Force Canteen Service (in the defence 
portfolio). 
Australia does not have entities that are subordinate to another entity in our framework. Each 
entity should be looked at separately, as legally a subordinate relationship between entities does 
not exist. Where an entity is listed, the functi ons performed by that entity are covered, unless 
expressly excluded in our Market Access offer. Th is includes any divisions that have specific 
functions that fall underneath that entity, such as the Australian Border Force which is a division of 
the Department of Immigration and Border Protection and is therefore covered. 
 2. Could Australia consider a definitional appr oach for coverage at central level? If 
not, please explain the reasons. 
Australia is unable to consider a definitional approach for coverage at the central level. Not all 
Commonwealth entities listed in the Public Governance, Performance and Accountability Act 2013 
are required to comp7ly with the Commonwealth pr ocurement framework; this prevents Australia 
from providing a definitional approach. The current listing ensures that Australian Government 
entities know that they are covered under an ag reement and that they comply with Australia's 
international free trade obligations. 
 
3. N o t e  2 :  w h a t  i s  t h e  r e a s o n / m e a n i n g  o f  the specific Annex 1 exception for the 
Australian Government Solicitor? In case yo u aim to exempt of specific services 
procured by the Australian Government Solici tor, would Australia be in a position to 
cover the rest of the procurement carried out by the Solicitor? 
On 1 July 2015 the Australian Government Solicitor was absorbed by the Attorney General's 
Department. The functions of the Australian Government Solicitor are not subject to the 
obligations of Australia's procurement framework and cannot be part of a government 
procurement offer in an Australian trade agreement. GPA/ACC/AUS/9 
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  4. Please identify which of the listed centra l government entities fund procurement 
that is carried out at the sub-central governme nt entities' level (Annex 2) or at the level 
of other entities (Annex  3)? Please specify for each of th ose central entities the type of 
procurement they fund and the main methods of funding. 
Australia's central level government provides funding to sub-central governments both generally, 
without conditions, and for specific functions, such as health, education, skills and workforce development, community services, housing, Indigenous reform, infrastructure; and environment. 
Funding in these areas is broadly provided to sub-central governments to achieve national policy 
objectives, and is not generally linked to specific procurements. Further information about funding between levels of government is available at: http://www.budget.gov.au/2015-
16/content/bp3/html/bp3_02_part_1.htm . 
 
5. Are there any central government entities  which fund procurement by grants or 
sponsorship payments which are not covered by the proposed list? (Please see 
exemption in General Notes Annex 7.) 
Australia does not collect data for central government entities funding procurements by grants and 
sponsorships. The exemption in Note 3 of Annex 7 is aimed at procurements funded by grants and 
sponsorship from private companies. An example of a recent sponsorship is the A$1,000,000 that 
the Australian War Memorial received from BHP Billiton Sustainable Communities for World War I galleries. An example of a recent grant is th e A$302,000 the National Museum of Australia 
received from the Australia Council for the Arts to support travelling exhibitions. 
 
6. Note 3.a.: how should Note 3.a. be interpre ted in conjunction with Article III of the 
GPA? Article III of the GPA allows for except ions, when it is "necessary to protect 
security or defence". We consid er that exceptions to GPA should be interpreted strictly. 
In your current offer, the exception might result in the exemption of goods, for ex. 
water purification and sewage treatment equipment, maintenance and repair shop 
equipment, prefabricated structures and scaffo lding, irrespective as to whether this is 
necessary for defence/security or not. 
Note 3 provides a list of goods and services required by the Australian Government to be excluded 
for the Department of Defence only. The De partment of Defence works in unique and 
isolated/remote locations in Australia and internationally. The list of exclusions reflects the 
operational requirements of these locations. Pr ocurements made under an exemption must be 
documented and justified. 
 
These government procurement exclusions are required by the Australian Government and are included in all of Australia's trade agreements. 
 
7. Note 3.b.: which are the specific services referred to in 3.b. (i., ii., iii., iv.). You 
refer to the US code classification; please sp ecify which types of services you intend to 
exclude, in particular for ii. and iii.? 
The requirements of the Department of Defence do not fit perfectly into the Common Classification 
System (CCS). However, they are approximately equivalent to relevant parts of the US Product Services codes, available at: https://www.acquisition.gov/?q=node/3637 . 
 
These government procurement exclusions are required by the Australian Government and are included in all of Australia's trade agreements. 
 
8. Note 3.c.: if only listed entities are cove red, what is the meaning of exception for 
procurement "on behalf of" the listed defence departments? 
The Defence Intelligence Organisation, Australian Signals Directorate and the Australian 
Geospatial-Intelligence Organisation are divisions that function under the Department of Defence. 
For national security reasons these divisions are not covered by the Agreement. The Department of Defence may conduct procurements on behalf of these divisions, the note is clarifying that such 
procurements are not covered under the Agreement. 
 GPA/ACC/AUS/9 
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  This government procurement exclusion is required by the Australian Government and is included 
in all of Australia's existing free trade agreements.  9. Note 3.d.: what is the meaning and scope of this exemption? 
The Australian industry capability program aims to build capacity for Australian industry to 
participate in Defence procurement within Australia and internationally. The Australian industry capability program applies to complex procurements where value for money is still the prime 
consideration when determining whether defence capability is to be sourced from Australian or 
overseas suppliers. For further information on the Australian industry capability program please refer to the Defence Procurement Policy manual available at: http://www.defence.gov.au/dmo/doi ngbusiness/procuremen tdefence/policies/de fencepolicyprocur
ementmanual/ . 
 
2  ANNEX 2 – SUB-CENTRA L GOVERNMENT ENTITIES 
10. Which is the reason for having higher thresholds in Annex 2 than most GPA 
Parties? 
The current thresholds for sub-central entities in Annex 2 of Australia's offer are similar to other 
GPA Parties' thresholds, including the United States and Canada. The Commonwealth Government 
consulted widely and at length with the States and Territories, and this mandate was secured from State and Territory Premiers and Chief Ministers for GPA Annex 2 thresholds. The threshold is consistent with state and territory commitments in Australia's trade agreements. 
 
Australian Capital Territory 
11. Are the main entities responsible for pub lic procurement procedures in ACT in the 
field of transport listed in this Annex? 
Yes, the main entities responsible for public procurement in the field of transport are listed 
(including ACTION and Capital Metro Authority). 
 
12. Are the main entities responsible for public  procurement procedures in the field of 
water, electricity, airports, ports and railway s listed in this Annex? Please substantiate 
your answer and provide further detail of ma in entities of Australian Capital Territory 
that are not listed. 
The ACT Government does not undertake procurement in relation to airports, ports and railways. 
Canberra Airport was privatised in 1998 and is ow ned by Capital Airport Group Pty Ltd. The ACT 
does not have a port. Responsibility for railways in the ACT resides with the New South Wales 
Government, through NSW Trains (an operating agency of Transport for New South Wales).  
The main entities responsible for public procuremen t procedures in the field of water and electricity 
are listed in the Annex. Most major procurement is undertaken through the Chief Minister, Treasury and Economic Development Directorate.  
13. Why is for example ICON water, which s eems to be the water utility operator for 
Canberra, not listed? 
ICON Water is a Territory owned corporation under the Territory Owned Corporations Act 1990  and 
is not a government entity under the relevant legislation (the Legislation Act 2001 (ACT) ) and has 
not been covered in Australia's trade agreements.  
14. Which sub-central government entities operating within the Australian Capital 
Territory receive public funds for infrastruc ture procurement, such as procurement of 
rolling stock? 
There is currently no requirement for the procurem ent of rolling stock. The following Directorates 
receive budget appropriation for infrastructure procurement: Chief Minister's, Treasury and GPA/ACC/AUS/9 
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  Economic Development, Community Services, Education and Training, Health, Justice and 
Community Safety. 
15. Does Capital Metro Authority receive funding for procurement purposes, for 
example, in the form of grants and from which entity? 
Capital Metro Agency receives an appropriation (Government Payment for Outputs) from the 
Territory budget. Budget information on Capital Metro Agency can be found in the ACT Budget 2015-2016 Budget Statements available at: 
http://apps.treasury.act.gov.au/budget/budget-2015-2016 . 
 
16. Do any preference policies (SME or buy loca l) apply to the procurement by entities 
currently listed? Please specify. 
Yes. The Territory provides a 5% weighting in the evaluation of tenders for SMEs based in the 
Canberra Business Region.  
17. Note 1 excludes utilities services. What is this supposed to exclude? Please specify 
what is covered by the definition of util ities services in this context and provide 
references to relevant legislation if appropriate . 
This exclusion refers to utilities services as defined in the Utilities Act 2000  (ACT), Utilities  
(Technical Regulation ) Act 2014  (ACT) and the Utilities  (Telecommunications Installations ) Act 
2001 (ACT). 
 
Under the Utilities Act 2000  (ACT) "utilities services" are defined to include electricity services 
(section 6, includes distribution, connection, transmission, capacity to generate 30MW or more of power connected to an electricity network), gas services (section 9, includes transmission, 
distribution and connection), water services (section 11, includes collection or treatment for 
distribution, making a water network available for the provision of water connection, distribution, 
connection and supply), sewerage services (secti on 13, includes making a sewerage network 
available for the provision of sewerage connection, connection and sewerage service), and 
prescribed utility services (section 15, includes related or ancillary services to those above or complementary to the operation of utility service, as prescribed by the regulations).  
Under the Utilities  (Technical Regulation ) Act 2014  (ACT) a "regulated utility service" includes the 
utility services above, as well as small or medium scale electrical generation, the supply of electricity or gas from a network to premises, owning, leasing or subleasing a registrable dam, the 
provision of a district energy service and a regulated utility service prescribed under section 10 
(section 9 of the act).  
Under the Utilities  (Telecommunications Installations ) Act 2001  (ACT) a "utility network facility" 
means a network facility under the Utilities Act 2000.  New South Wales 
18. Are the main entities responsible for public  procurement procedures in the field of 
water, electricity, airports, ports, transport and railways listed? Please substantiate your 
answer and provide further detail of main entities of New South Wales that are not 
listed. 
The main entities covered by NSW Government pr ocurement legislation are listed. These entities 
are government departments, agencies and statutory entities. Ports, transport and railways are 
covered within Transport for NSW, unless operated  by state-owned corporations or the private 
sector. State owned corporations, which are not covered by Government procurement laws, operate in water and electricity generation and supply. These corporations are required to act in a commercial manner. 
 GPA/ACC/AUS/9 
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  19. More than 140 agencies are on website of NSW but only 39 are offered. What are 
main procuring agencies that are excluded and for which reasons? 
The 39 entities offered are the major procuring en tities. In most cases, the remaining entities' 
procurement is managed or oversighted by one of the 39 agencies. 
 
20. Which sub-central government entities op erating within New South Wales receive 
public funds for infrastructure procuremen t, such as procurement of rolling stock? 
The Government's funding of infrastructure procurem ent varies from year to year, but is published 
annually in the Infrastructure Statement attach ed to the NSW Government Budget. The Budget 
Papers are available at: http://www.budget.nsw.gov.au/ . 
 
Transport for NSW is the only entity which procures rolling stock. 
 21. The entity "Transport for NSW" which is  an important entity in the transport 
cluster is offered but with a significant exce ption. What does the exception refer to and 
for which projects? 
The Transport Construction Authority was abolis hed on 1 November 2011 and the Country Rail 
Infrastructure Authority was abolished on 1 July 2012. The functions of both Authorities were 
absorbed into Transport for NSW. The exception refers to legacy projects commenced under the Transport Construction Authority and the Country Rail Infrastructure Authority. This exception is included in Australia's free trade agreements. 
 
22. Do any preference policies (SME or buy local) apply to the procurement carried out 
by entities that are currently listed? Please specify. 
The NSW Government's SME Procurement Policy Framework applies. A copy of this policy is 
available at: https://www.procurepoint.nsw.gov.au/polic y-and-reform/goods-and-services/small-
and-medium-enterprises-policy-framework . 
 
Northern Territory 
23. Are the main entities responsible for public  procurement procedures in the field of 
water, electricity, airports, ports, transport and railways listed? Please substantiate your 
answer and provide further detail of main en tities of Northern Territory that are not 
listed. 
The current market access offer is consistent with Australia's trade agreements to which the 
Northern Territory Government (NTG) is a party. The NTG procurement framework is designed to 
be compliant with those obligations and applies uniformly to all NTG Agencies regardless of their specific inclusion. 
 
The entities responsible for airports, ports, transport and railways are not included in the market access offer.  
Water and electricity are primarily the responsibility of Power Water Corporation, a Government 
Owned Corporation, which is not a covered enti ty under any of Australia's existing trade 
agreements and does not fall under the NTG procurement framework. 
 
24. What does the exception in Note 1 refe rs to (services from Charles Darwin 
University?) 
The Northern Territory Government (NTG) has entered into a Partnership Agreement with Charles 
Darwin University (CDU) that recognises the role CDU plays as a major contributor to the social, economic and intellectual development of Northern Australia. The current Partnership Agreement operates for the period 2014-2021 and is publicly available https://www.cdu.edu.au/government/ . 
Where a requirement falls under the core outcomes of the Partnership Agreement NT Agencies 
may approach CDU to tender under select tend er arrangements in accordance with the NT 
procurement framework. GPA/ACC/AUS/9 
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  25. Do any preference policies (SME or buy loca l) apply to the procurement by entities 
currently listed? Please specify. 
The Northern Territory Government (NTG) has Best Value for Money (VFM) as its overarching 
procurement principle; this includes a mandatory Local Development and Value Adding (LDVA) 
component for all procurement assessments. The current VFM and LDVA framework does not 
discriminate based on place of ownership or orig in and is not considered a preference policy. 
 
However, the NTG also has the following preference policies that support its particular needs in 
relation to social and economic development:  Remote Contracting Policy - The Northern Territory Government implements policies designed to 
deliver social, economic and cultural outcomes that may favour local contractors/businesses. The Remote Contracting Policy  allows government to typically award minor repairs and maintenance 
contracts on essential services, housing and transport assets to local Aboriginal businesses. Also, it 
ensures that a Joint Venture with local Aboriginal business must be undertaken for contracts over 
A$5 million.  
Indigenous Participation on Construction Projec ts Policy – This policy provides employment 
opportunities and builds the capacity of Indigenous  businesses to successfully share in the delivery 
of construction projects in the Northern Territory. Indigenous participation is a mandatory requirement for all tenders for Northern Territory Government construction contracts for Tier 4 
(A$500 000 but less than A$2 million) and Tier 5 (A $2 million and greater) procurement activities. 
 Queensland 
26. Are the main entities responsible for public  procurement procedures in the field of 
water, electricity, airports, ports, transport and railways listed? Please substantiate your 
answer and provide further detail of ma in entities of Queensland not listed. 
The Queensland Government owns a number of commercial businesses in sectors referred to in 
the above question. Details on the current government-owned corporations are provided in the table below.  
Sector Government-owned corporation 
Energy generation  CS Energy Ltd 
 Stanwell Corporation Ltd 
Energy transmission  Queensland Electricity Transmission Corporation Limited 
(Powerlink Queensland) 
Energy distribution  ENERGEX Ltd 
 Ergon Energy Corporation Ltd 
Ports  Far North Queensland Ports Corporation Ltd (Ports North) 
 Gladstone Ports Corporation Ltd 
 North Queensland Bulk Ports Corporation Ltd 
 Port of Townsville Ltd 
Water  SunWater Ltd 
Other  QIC Ltd 
 
These entities are responsible for setting their own procurement policies and procedures, and are 
not currently covered by the Queensland Procurement Policy (the Queensland Government's 
overarching policy for the procurement of goods and services, including construction).  
Airports in Queensland are commercial entities (f or example, Queensland Airports Limited owns 
and operates the Gold Coast, Townsville, Mount Isa and Longreach Airports and Brisbane Airport 
Corporation operates the Brisbane Airport). Ports are managed by four government-owned corporations (as above), except for the Brisbane Port that is managed by a private company, Port 
of Brisbane Pty Ltd. 
 GPA/ACC/AUS/9 
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  The Queensland Government also has two statutory bodies in the sectors referred to above. 
Details of these bodies are provided in the table below.  
Sector Statutory body 
Rail  Queensland Rail 
Water  Queensland Bulk Water Supply Authority (trading as Seqwater) 
 
As statutory bodies, these entities are able to  set their own procurement procedures, provided 
such procedures are broadly consistent with the Queensland Procurement Policy. 
 
Further details on the above listed entities are available at: https://www.treasury.qld.gov.au/economy/go vernment-commercial-businesses/index.php . 
 
As the above listed entities are either not cove red by the Queensland Procurement Policy or are 
able to set their own procurement procedures, they are not included in Queensland's offer. This is consistent with the Queensland Government's market access offer in Australia's trade agreements. 
 
27. The Queensland list includes "Entities de clared to be departments pursuant to 
section 14 of the Public Service Act 2008". Compared to the agencies in checklist, does 
the formulation "Entities declared to be de partments pursuant to section 14 of the 
Public Service Act 2008 "include the subordinate entities/agencies listed in the checklist document for Queensland? 
Yes. Subordinate entities are captured by the statement relating to Section 14 of the Public Service 
Act 2008 (Qld). These entities are part of the department under which they are listed. For 
example, the Office of State Revenue and the Queensland Government Statistician's Office are part of Queensland Treasury (which is a declared department under Section 14 of the Act). 
 
In addition to the statement relating to Section 14 of the Act, Queensland also separately lists four entities. These are the: 
 
 Motor Accident Insurance Commission; 
 Nominal Defendant; 
 Public Service Commission; and 
 Public Trust Office. 
These entities continue to be separately listed as they are not departments under Section 14 of the 
Act. Continuing to list these entities ensures parity and consistency with the Queensland 
Government's market access offer in Australia's trade agreements. 
 28. Note 1: is the exclusion referred to any ty pe of procurement by agencies delivering 
health and education etc., or to the procur ement of the specific health and education 
services? 
Note 1 states: 
 
"For the entities listed for Queensland, this Agreement does not apply to procurement 
undertaken by departments, or parts of departments, which deliver health, education, training and/or arts services." 
This note refers to any type of procurement under taken by a department, or part of a department, 
that delivers any of the services contained within the note. This note ensures a consistent level of coverage when compared to the Queensland Government's market access offer in Australia's 
existing trade agreements. 
 GPA/ACC/AUS/9 
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  29. Note 2: how will this (transitional) measure apply concretely? 
Note 2 states: 
 
"For the entities listed for Queensland, Article XVI.2 (Transparency of Procurement 
Information – Publication of Award Information) does not apply for a period of three 
years from the date of entry to force of the Agreement so as to allow time for the entities listed for Queensland to make the necessary modifications to electronic means 
to enable publication of such information." 
For context, the inclusion of this note relates spec ifically to the requirements of point "f." under 
Article XVI.2, which requires the disclosure of a description of the circumstances justifying the use of limited tendering. 
 
The procurement related systems currently used by the Queensland Government do not readily enable the disclosure of a description of the circum stances justifying the use of limited tendering. 
A transition period would therefore be required to enable the necessary changes to systems and 
processes to be made.  
However, it is also important to note that the Queensland Government does already have in place 
a contract disclosure requirement which, it is believed, would otherwise satisfy the requirements of Article XVI.2. This includes the disclosure of:  
 basic details for procurements valued at A$10,000 and above; 
 further additional details (over the basic details required) for procurements valued at 
A$10 million and above; 
 the procurement method used for procurements valued at A$500,000 and above. 
Further information on the Queensland Government's contract disclosure requirements is available 
at: 
http://www.hpw.qld.gov.au/SiteCollectionDocum ents/ProcurementGuideC ontractDisclosure.pdf . 
 
Lastly, it is also worth noting that the Queensland Government has in place a Right to Information Scheme (similar to what is sometimes termed as "Freedom of Information" in other jurisdictions). 
This is embedded under the Right to Information Act 2009 (Qld), and is available at: 
http://www.legislation.ql d.gov.au/LEGISLTN/CURRENT/R/RightInfoA09.pdf . 
 
30. Which sub-central government entities oper ating within Queensland receive public 
funds for infrastructure procurement? 
The Department of Infrastructure, Local Government and Planning leads the government's 
development of infrastructure policy planning and investment prioritisation. Further information in 
relation to the department is available at: http://dilgp.qld.gov.au/ . 
 
Funding for infrastructure expenditure is allocated as part of the annual budget process. This 
funding is allocated to the entity with responsibi lity for type of infrastructure required. Further 
information in relation to this is available at: http://budget.qld.gov.au/budget-highlights/infrastructure.php . 
 
31. Do any preference policies (SME or buy loca l) apply to the procurement by entities 
currently listed? Please specify. 
It is important to note that the Queensland Government has no policy in place which requires that 
its entities must "buy local" or from small and medium sized enterprises. The Queensland Government currently has in place two instruments which are of particular relevance to the question raised: 
 
 The Information and Communication Technology Small to Medium Enterprise 
Participation Scheme , which seeks to improve small and medium sized business GPA/ACC/AUS/9 
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  access to government procurement opportunities for information and communication 
technologies. Further information in relation to the scheme is available at: https://www.qld.gov.au /dsiti/about-us/busi ness-areas/ict-strate gic-sourcing/sme-
participation-scheme/ . 
 The Queensland Charter for Local Content , which aims to provide businesses with a 
full, fair and reasonable opportunity to tender for Queensland Government procurements. Further information in relation to the charter is available at: 
http://www.statedevelopment.q ld.gov.au/resources/charte r-for-local-content.html . 
The Queensland Government's policies are compliant with its obligations under Australia's trade 
agreements.  
 
South Australia 
32. Are the main entities responsible for public  procurement procedures in the field of 
water, electricity, airports, ports, transport and railways listed? Please substantiate your 
answer and provide further detail of main en tities of South Australia that not listed. 
Water: SA Water is a public authority that operates on a commercial basis within the market 
place. SA Water is considered to be a government business enterprise as its principal function is to 
engage in commercial activities in the private sector. It is controlled by the Government (the 
Government's interest in it is 100%), and it ha s an independent legal existence from government 
and the executive. SA Water has its own polic y framework outside of the State Procurement 
Board's procurement framework (under the State Procurement Act 2004 , it is defined as a 
"prescribed public authority"). It is, however, still accountable to the SA Government. 
 Electricity: in 1999, the electricity market in South Australia was privatised. 
 
Airports: Adelaide Airport Limited purchased the long term leases of Adelaide and Parafield Airports from the Commonwealth Government in 1998. Adelaide Airport Limited is fully privately 
owned and managed. 
 Ports: The port of Adelaide and a number of other regional ports in South Australia are operated by Flinders Ports, a private operator that is responsible for all relevant procurements. 
 
Transport: The Department of Planning, Transpor t and Infrastructure (DPTI) is responsible for 
public transport in SA and this entity is covered. 
 
Railways: Metropolitan railway lines are now owned and operated by Adelaide Metro, covered in Australia's offer as part of the Department of Planning, Transport and Infrastructure (DPTI). The 
DPTI, on behalf of the Rail Commissioner, maintains all rail infrastructure and provides tram and 
train services within metropolitan Adelaide, and is a listed entity. Non-metropolitan railways are provided by National Rail Corporation (Commonwea lth government). Interstate services, intrastate 
freight and interstate freight are all operated by private sector companies. 
 
33. Which sub-central government entities op erating within South Australia receive 
public funds for infrastructure procurement? 
Any of the entities listed in South Australia's offer may receive public funds for an infrastructure 
procurement, however the Department of Transport,  Planning and Infrastructure (DPTI) is the key 
entity involved with major public infrastructure projects. DPTI is responsible for the SA 
Government's Strategic Infrastructure Plan for South Australia which maps out major 
infrastructure priorities and is available at: http://www.infrastructure.sa.gov.au /strategic_infrastructure_plan ). There are, however a few 
major projects that involve other key agencies in addition to DPTI. For example, the new Royal 
Adelaide Hospital is a Public Private Partners hip (PPP) project and involves SA Health and the 
Department of Treasury and Finance (DTF). Other infrastructure procurements may be funded and 
managed by the agency itself (for example, th e Department of Education and Child Development 
undertakes some minor capital works projects). 
 GPA/ACC/AUS/9 
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  It is important to note that South Australia has the Public Works Committee which is a Standing 
Committee appointed by the Parliament under the Parliamentary Committees Act 1991. Its role is to inquire into, consider and report on any public work referred to it by or under the Act. Public works (i.e. infrastructure projects) with a total amount to be approved for construction exceeding 
A$4 million must be referred to the Committee. 
 34. Do any preference policies (SME or buy loca l) apply to the procurement by entities 
currently listed? Please specify. 
DPTI manages the Workforce Participation in Government Construction Policy which requires 
government agencies and contractors to work together and ensure that 15% of labour hours on specified contracts for building and civic works is undertaken by apprentices, trainees, Aboriginal 
people, local people with barriers to employment and for up-skilling. 
 The SA Government's Industry Participation Policy  (IPP) applies an economic contribution test 
(ECT) based on the level of economic activity ge nerated by a procurement (jobs, investment and 
supply chain impact on the SA economy). The ECT is not a price preference but is used to distinguish between otherwise close bids on the gro und of economic contribution to SA as part of a 
value for money assessment. The IPP applies to most SA government entities. 
 These policies operate within the context of relevant national and international agreements and procurement policies to which SA is a signatory. 
 
Tasmania 
35. Are the main entities responsible for public  procurement procedures in the field of 
water, electricity, airports, ports, transport and railways listed? Please substantiate your 
answer and provide further detail of ma in entities of Tasmania not listed. 
The following Government Business Enterprises (GBEs) and State-owned Companies (SOCs) 
procure and supply goods and services in the fields  listed, but they are not subject to rules which 
generally cover procurement by State Government Agencies. These entities do not form part of the Tasmanian Government market access offer in rela tion to the WTO GPA and they are not included 
in Tasmania's Market Access offers for Government Procurement under Australia's trade 
agreements. 
 
 Water: Tasmanian Irrigation Pty Ltd (SOC) - develops, owns, operates and administers 
specific irrigation schemes in Tasmania, and, where feasible and appropriate, facilitates 
local community management of the schemes. 
 Electricity: Hydro Tasmania (GBE) – generates electricity in Tasmania through 
hydropower, wind and gas. It trades in the wholesale electricity and gas markets and in 
environmental energy products, selling retail electricity and gas in mainland states through its subsidiary, Momentum Energy. Hydro Tasmania's consulting arm, Entura, offers power engineering, renewable energy, water and environment solutions; Aurora 
Energy Pty Ltd (SOC) - retails electricity and gas to households and businesses 
throughout Tasmania; Tasmanian Networks Pty Ltd (SOC) - delivers power to households and businesses throughout Tasmania and also operates a 
telecommunications business that serves customers in the electricity industry and other 
industries. 
 Airports: Tasmanian Ports Corporation Pty Ltd (SOC) – runs the regional Devonport 
Airport. 
 Ports: Tasmanian Ports Corporation Pty Ltd (SOC) – responsible for the operation and 
management of public ports in Tasmania. 
 Transport: TT-Line Company Pty Ltd (SOC) - provides passenger, passenger vehicle and 
freight services to and from Tasmania; Metr o Tasmania Pty Ltd (SOC) - provides road 
passenger transport services in Tasmania (it operates public bus services in the urban centres of Hobart, Launceston and Burnie). GPA/ACC/AUS/9 
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   Railways: Tasmanian Railway Pty Ltd (SOC) - operates and manages the rail network in 
Tasmania and owns the rolling stock and it provides rail freight services to customers. 
In addition to the above SOCs and GBE, TasWat er provides water and sewerage functions in 
Tasmania. The governance arrangements of TasWater are incorporated in the Water and Sewerage 
Corporation Act 2012  (Tas). TasWater is not subject to rules which generally cover procurement by 
State Government Agencies and does not form part of the Tasmanian Government market access offer in relation to the WTO GPA. 
 
36. Which sub-central government entities op erating within Tasmania receive public 
funds for infrastructure procurement, such as, for example, for procurement of rolling 
stock? 
All entities included in the Tasmanian Government market access offer receive public funding for 
infrastructure procurement to some degree, but the key entities are the Departments of State Growth, Health and Human Services, Education, Justice, Police and Emergency Management and 
Primary Industries, Parks, Water and Environment. 
 Tasmanian Railway Pty Ltd (SOC) operates and ma nages the rail network in Tasmania and owns 
the rolling stock. This is not a sub-central entity listed in the Tasmanian Government offer. 
 Metro Tasmania Pty Ltd (SOC) provides road passenger transport services in Tasmania. This is not a sub-central entity listed in the Tasmanian Government offer and is not included in Tasmania's 
Market Access offers for Government Procurement under Australia's trade agreements. 
 37. Do any preference policies (SME or buy loca l) apply to the procurement by entities 
currently listed? Please specify. 
No preference policies currently apply to the procurement by entities listed. However, the 
Tasmanian Government does have a Buy Local Policy which applies to the entities listed and is 
aimed at increasing awareness of the benefits in buying locally and improving access to 
Government contracts for small and medium enterprises (SMEs). The Buy Local Policy works to improve opportunities for Tasmanian businesses; for example, where local capability exists, 
agencies are required to consider at least one quote or tender (depending on the value of the 
procurement) from a Tasmanian business. However, best value for money remains the key 
consideration in assessing procurement bids. Further information on the Buy Local Policy is available at: 
http://www.purchasing.tas.gov.au/buyingforgov ernment/getpage.jsp? uid=34A2CEB6804BED10CA
257CCA000F0926 . 
 
Victoria: 
38. Are the main entities responsible for public  procurement procedures in the field of 
water, electricity, airports, ports, transport and railways listed? Please substantiate your 
answer and provide further detail of main en tities of Victoria that are not listed. 
There are 32 entities responsible for public procur ement procedures in the field of water, including 
19 water corporations and 13 catchment management authorities. These entities are not listed. No government procurement is undertaken by Victorian entities in relation to electricity or airports 
due to privatisation of those entities. The Port of Hastings Development Authority and the Port of 
Melbourne Corporation are the main entities respon sible for procurement procedures in the field of 
ports and these entities are not listed. VicRoa ds, the Public Transport Development Authority 
(Public Transport Victoria) and VicTrack are the main entities responsible for procurement in the 
field of transport and railways and these entities are not listed. These entities have not been included in Victoria's Market Access offers fo r Government Procurement under Australia's trade 
agreements. 
 GPA/ACC/AUS/9 
- 12 - 
  39. Which sub-central government entities op erating within Victoria receive public 
funds for infrastructure procurement, such  as, for example, procurement of rolling 
stock? 
VicRoads, VicTrack and the Public Transport Development Authority (Public Transport Victoria) 
receive public funds for infrastructure procurem ent. The Public Transport Development Authority 
and VicRoads are statutory authorities; the Public Transport Development Authority is not bound by the Victorian government procurement framework. VicTrack is a State-owned government 
business, and is also not bound by the Victorian government procurement framework. These three 
entities are not listed entities under Australia's of fer and they are not included in Victoria's Market 
Access offers for Government Procurement under Australia's trade agreements.  
40. We understand that this State has a loca l content requirement. For instance, we 
understand that the Victorian Industry partic ipation Policy requires suppliers to meet a 
minimum local content in public procurement for projects that have been declared of 
strategic significance (such as rolling st ock). Please explain which are the main 
sub-central entities of Victoria which are affe cted by this requirement. Are any of those 
entities proposed for coverage? 
The Victorian Industry Participation Policy (VIPP) requires government agencies to consider 
opportunities for participation by competitive local suppliers when awarding certain contracts, including; requiring bidders for a procurement to outline how they will achieve local content, employment, training, and innovation outcomes through delivery of the contract. The VIPP does 
not provide a preferential benefit to local supplie rs – the key consideration by an agency will be 
that the supplier has made a genuine attempt to identify and use local value-added contents wherever it makes good commercial sense to do so. 
 
VIPP applies to all government agencies and public bodies, as defined in the Financial Management 
Act 1994 . This includes, but is not limited to: 
 
 Departments; 
 statutory authorities; 
 administrative offices; 
 State owned companies; 
 police and emergency services; 
 regulatory agencies; 
 public health sector including hospitals and Health Purchasing Victoria; 
 water and land management authorities. 
VIPP applies to a procurement activity when the following three criteria have been met: 
 
1. the procurement activity is wholly or partially funded by the State Government; 
2. the procurement activity meets or exceeds either: 
a. A$1 million in regional Victoria; or 
b. A$3 million in metropolitan Melbourne or for state-wide activities. 
3. the procurement activity contains contestable goods or services. Where an activity contains no or limited contes table items, but meets the first two VIPP criteria, 
then a VIPP Plan may not be required. However, th e principles of VIPP continue to apply, and the 
successful bidder should consider engaging competitive local suppliers, subject to value for money GPA/ACC/AUS/9 
- 13 - 
  criteria, wherever possible. The shortlisted bidders must provide an estimate of the expected local 
content within the proposed procurement activity. The estimate must form part of their tender 
documentation and be reported by the agency to the responsible Minister for publication in the 
VIPP Annual Report. 
 
There are no minimum local content requirements unless the project is declared a Strategic Project (automatically declared for all projects with an estimated total value of A$50 million or more). 
Strategic projects are expected to contribute to the productive capability of Victoria, potentially 
generate significant local industry participation,  create opportunities to build ongoing industry 
capability and/or contain significant contestable items. For these projects, the Victorian Government will determine, on a case-by-case basis, local content requirements to help drive 
additional economic activity and jobs. Any loca l content requirements will be included in the 
request for tender documents.  
All of the entities listed in the market access offe r are included within the scope of VIPP, including 
potentially conducting procurement processes for Strategic Projects.  
41. Do any other preference policies (SME or buy local) apply to the procurement by 
entities currently listed? Please specify. 
The Victorian Government is committed to providing equal opportunities to all businesses, 
including through participation policies that promote access to procurement opportunities by SMEs 
and local businesses. The Victorian Government Purchasing Board's (VGPB) supply policies' 
objectives are focussed on maximising value for mo ney however, and they do not preference SMEs 
and local businesses. 
 
The VGPB complexity and capability assessmen t policy and Market Approach Policy have 
mandatory requirements to consider within the overall procurement need, opportunities for local 
businesses and small to medium enterprises (SMEs) to participate in government procurement and 
to develop a market approach that eliminates barriers to participation by SMEs and local businesses. This policy applies to all entities th at are part of the market access offer. Relevant 
policies are available at: http://www.procurement.vic.gov.au/Home . 
 
In addition, the VGPB has issued guidance (i.e. non-mandatory) material "Improving access to 
government business for SMEs – procurement guide"  available at: 
http://www.procurement.vic.gov.au/Home . This guide applies to all entities that are part of the 
market access offer. This guidance material outlines the benefits of engaging with SMEs and how 
to improve opportunities for SME participation in government procurement. 
 
42. How will Australia make sure that any preference policy and any local content 
requirements are compatib le with GPA obligations? 
Australia has been given assurances by the States and Territories that any measures are not 
discriminatory and are maintained only to ensure that Australian firms have equal opportunities to 
access government contracts, and that these measures are consistent with Australia's international trade obligations. 
 
It is important to understand that the States are not seeking to exclude foreign suppliers – in fact, foreign suppliers win many of the major contracts. The concern is that Australian small and 
medium enterprises are at a disadvantage that is not related to their competitiveness, but rather 
their ability to identify and pursue opportunities, including getting into global supply chains.  It should be noted that there are no preferential  measures in place to achieve these policies. As 
noted in detail in the Checklist document, compliance with Australia's international trade 
obligations in respect of government procurement is ensured in Victoria through the Victorian Government Purchasing Board ( http://www.procurement.vic.gov.au/Home ) and the Victorian 
Industry Participation Plan ( http://dsdbi.vic.gov.au/our-department/strategies-and-
initiatives/victorian-industry-participation-policy/frequently-asked-questions) . 
 GPA/ACC/AUS/9 
- 14 - 
  Western Australia 
43. Are the main entities responsible for public  procurement procedures in the field of 
water, electricity, airports, ports, and railw ays listed? Please substantiate your answer 
and provide further detail of main enti ties of Western Australia not listed. 
The procurement activities conducted in the field of railways are all undertaken by those agencies 
within the Transport portfolio – chiefly the Public Transport Authority. The Rail Freight System was privatised in 2000. 
 
With respect to water, the Department of Water, which is responsible for managing WA's water resources, is a listed entity. However some water supply, wastewater and drainage services are provided by the Water Corporation, a Government Trading Enterprise (GTE) that is not listed. The 
Water Corporation's Engineering and Construction Division has been privatised. 
 With respect to electricity, Western Power, Synergy and Horizon are all GTEs and are not listed 
and have not been included in Australia's free trade agreements. 
 With respect to ports, WA has a number of Port Authorities, all of which are GTEs and are not 
listed and have not been included in Australia's free trade agreements. 
 44. Department of Transport is not listed, but its two agencies (Main Roads and the 
Public Transport Authority) which appear to have responsibility for construction and 
operational matters are listed. Why is th e Department of Transport not offered? 
The functions of Department of Transport used to be contained within the Department of Planning 
and Infrastructure. Relatively recent machinery of government changes created the Department of 
Transport as a separate entity. The Department of Transport is not included in Western Australia's 
offer.  
45. What is the division of role between De partment of Transport and those agencies 
with respect to procurement projects in fields of transport? 
The Department of Transport (DoT) has carriage of marine infrastructure (excluding infrastructure 
of the Port Authorities), the Public Transport Authority (PTA) has carriage of rail infrastructure, and 
Main Roads (MR) has carriage of major road infrastructure. 
 46. The EU understands that the main public outlays for Western Australia are in the 
infrastructure sector (especially construction).  Is all of this procurement carried out by 
the Main Roads Western Australia and by th e Public Transport Authority or are there 
other relevant sub-central entities? For exam ple, which public entities procure rolling 
stock for public transportation in Western Australia? 
The Public Transport Authority procures all aspects of public transport infrastructure, including 
rolling stock and Main Roads procures infrastructure works relating to roads and structures construction and maintenance thereof, there are no other sub-central entities for these sectors. 
The Department of Transport (DoT) has carriage of marine infrastructure, however some 
infrastructure is procured by the Port Authorities (see question 43, above). The Department of Housing, the Department of Treasury and the Depa rtment of Finance all procure works (e.g. major 
projects, public housing and other Public Works under the Public Works Act). 
 47. Do the Main Roads Western Australia and the Public Transport Authority receive 
funding for infrastructure procurement from  any public body? Please define which 
entities. Do they grant funding for procurement purposes to any other public entity? Please define to which public entities they grant funding. 
Public Transport Authority receives some Commonwealth funding for infrastructure projects, as 
well as contributions from other state government entities. As an estimate based on percentage of 
its capital budget, the Authority approximately fund s other state government entities around 0.1% 
of budget and receives funding from other Commonwealth and state entities of approximately 2% 
of budget. 
 GPA/ACC/AUS/9 
- 15 - 
  Main Roads receives funding from the Commonwea lth Government and the WA State Government 
as well as contributions from other state government entities. As an estimate based on average percentage of its capital budget, Main Roads funds other state government entities approximately 5% of budget. 
 
48. What is the reasoning for asking the re servations for multi-supplier list? This 
seems to be incompatible with GPA (Art icle IX.11), as it appears to impose 
pre-qualification requirements. Suppliers (con struction works) must be prequalified to 
be eligible for a tender. Could WA change its law to make it compatible with GPA? 
Australia requires the inclusion of Note 1 under Western Australia (WA). The time and complexity 
required to assess requests to participate in a procurement from suppliers not already 
pre-qualified under WA's Department of Finance, Building Management and Works' Prequalification 
Scheme and Main Road's National Prequalification  System for Civil (Road and Bridge) Construction 
Contracts Scheme would have a significant, negative  impact on the timely and efficient delivery of 
particular projects to the community. 
 49. Please elaborate on WA Buy local policy, how is it applied? For instance, how is the 
WA Buy local policy applied in infrastructure  procurement, for instance, by the Main 
Roads Western Australia and by the Public Tr ansport Authority? How is the WA Buy local 
policy applied, for example, to the procuremen t of rolling stock for public transportation 
in Western Australia? 
The Buy Local Policy is applied to rolling stock, infrastructure procurement, and the procurement of 
pencils in exactly the same way.  
The Buy Local Policy (as affected by its addenda) is applied as follows. 
 The Buy Local Policy (the Policy) contains the following preferences: 
 
 The Local Content Criterion; 
 Regional Price Preferences; and 
 The Imported Content Impost. 
The Local Content Criterion 
 The Local Content Criterion is included, as a qualitative criterion, in all procurement activity above 
AA$750,000. The Criterion is weighted 20%. As a result of the Addenda to the Policy, the criterion 
is not applied when a bid is received from a country with which there is a Government Procurement trade agreement commitment. The criterion is also not applied when WA receives a 
bid from another Australian State or Territory. 
 The Regional Price Preferences  
The Regional Price Preferences are only applied wh ere the contract to be awarded has a regional 
delivery point. The regional price preferences give a nominal discount (for evaluation purposes only) to tenderers who are eligible for the prefer ences. The price preference is a 10% preference 
(for goods and services) and a 5% preference (f or works), up to the value of A$250,000. There 
are two regional price preferences – the region al business preference and the regional price 
preference. The regional business preference is given to businesses located within a prescribed 
distance from the delivery point of the contract . The regional content preference is given to 
suppliers outside of the prescribed distance, but who use content sourced from within the prescribed distance. It too is a 10% preference (f or goods and services) and a 5% preference (for 
works), up to the value of A$250,000. 
 
As a result of the Addenda to the Policy, the criter ion is not applied when a bid is received from a 
country with which there is a government procurement trade agreement commitment. The 
criterion is also not applied when WA receives a bid from another Australian State or Territory. 
 GPA/ACC/AUS/9 
- 16 - 
  The Imported Content Impost 
 The Imported Content Impost is a 20% impost (for evaluation purposes only), which is applied to the portion of a bid that comprises goods services or items that have been imported. 
 
As a result of the Addenda to the Policy, the im post is not applied to goods imported from a 
country with which there is a government procurement trade agreement commitment. 
 
50. Do any other preference policies (SME or buy local) apply to the procurement by 
entities currently listed? Please specify. 
The State Supply Commission's Open and Effective Competition  policy includes a provision to 
directly engage Australian Disability Enterprise s and Aboriginal Businesses. The Department of 
Finance, Building Management and Works, area applies an Aboriginal Apprenticeship Scheme.  
51. How will Australia make sure that the WA Buy local policy is compatible with GPA 
obligations? 
Western Australia will release another addendum to the Buy Local Policy, and will change the 
procurement templates (which are used almost uniformly for goods and services across the State) 
to include GPA partners as countries for which there is a government procurement trade agreement commitment. This will mean the preference s included in the Policy will not apply to GPA 
members. This is consistent with WA's previous practice for other government procurement trade 
agreement commitments. 
 3  ANNEX 3 - OTHER ENTITIES 
52. There is a class of government entity, called "Government Business Enterprises". 
GBEs are either commonwealth entities (the Australian Postal Corporation) or 
Commonwealth companies (ASC Pty Limited, Australian Rail Track Corporation Limited). 
GBEs seem to be comparable to the EU catego ries of public undertakings. The EU offers 
in its Annex 3 all public undertakings in the utilities sectors. 
What are the reasons for not offering the main GBEs? 
 
Government Business Enterprises (GBEs) are not included in Australia's offer because they are 
commercial entities and are not covered under Australia's procurement framework. GBEs are governed by the Public Governance, Performance and Accountability Act 2013 (PGPA Act ) and the 
Commonwealth Government Business Enterprise Governance and Oversight Guidelines . More 
information on the governance arrangements for Commonwealth Government Business Enterprises, available at: http://www.finance.gov.au/resource-management/governance/gbe/. 
GBEs are not included in Australia's trade agreements. 
 Australia has gone through 30 years of divestment and / or privatisation of public assets including most utility assets. In terms of the remaining GBEs, the current Government has initiated scoping 
studies on divesting or privatising the Commonwealth Government's GBEs and has not made a 
decision on their future.  
53. Please provide detail for the legal and administrative status for each GBE 
(ownership, financial participation and governing rules). 
Australian Government Business Enterprises are governed by the Public Governance, Performance 
and Accountability Act 2013  (PGPA Act ) and the Commonwealth Government Business Enterprise 
Governance and Oversight Guidelines . The Commonwealth GBE Governance and Oversight 
Guidelines  provide additional guidance on board and corporate governance, financial governance 
and planning and reporting. These guidelines are available at: 
http://www.finance.gov.au/sites/defau lt/files/RMG-126 GBE Guidelines.pdf . 
 GPA/ACC/AUS/9 
- 17 - 
  A complete list of Commonwealth GBEs and their shareholders is provided below: 
 
 ASC Pty Ltd  (http://www.asc.com.au/ ) 
Shareholder ministers: 
 Minister for Defence ( http://www.minister.defence.gov.au/ ); and 
 Minister for Finance ( http://www.financeminister.gov.au/ ). 
 Australia Postal Corporation  (http://auspost.com.au/ ). 
Additional Governing Rules: 
 the Australian Postal Corporation Act 1989  
(http://www.comlaw.gov.au/Details/C2012C00142 ). 
Shareholder ministers: 
 Minister for Communications; and 
 Minister for Finance. 
 Australia Rail Track Corporation (ARTC)  (https://www.artc.com.au/ ) 
Additional Governing Rules: 
 the Transport Safety Investigation Act 2003 ; and 
 the Public Service Act 1999 . 
Shareholder ministers: 
 Minister for ( http://www.minister.defence.gov.au/ ) Infrastructure and Regional 
Development; and 
 Minister for Finance ( http://www.financeminister.gov.au/ ). 
 Defence Housing Australia  (https://www.dha.gov.au/ ) 
Additional Governing Rules: 
 Public Service Act 1999 (https://www.comlaw.gov.au/Details/C2014C00511 ); and 
 the Defence Housing Australia Act 1987  
(https://www.comlaw.gov.au/Details/C2012C00065 ). 
Shareholder ministers: 
 Minister for Defence ( http://www.minister.defence.gov.au/ ); and 
 Minister for Finance ( http://www.financeminister.gov.au/ ). 
 Moorebank Intermodal Company  (http://www.micl.com.au/ ) 
Shareholder ministers: 
 Minister for ( http://www.minister.defence.gov.au/ ) Infrastructure and Regional 
Development; and 
 Minister for Finance ( http://www.financeminister.gov.au/ ). 
 NBN Co Ltd  (http://www.nbnco.com.au/ ) 
Shareholder ministers: 
 Minister for Communications ( http://www.minister.defence.gov.au/ ); and 
 Minister for Finance ( http://www.financeminister.gov.au/ ). 
54. Which GBEs are not in the process of  privatisation or are under partial 
privatisation? (In this context, please define  what is considered privatisation or partial 
privatisation.) 
The Australian Government does not have a formal policy on the definition for privatisation or 
partial privatisation.  
The Australian Government conducts studies investigating a range of issues on the future 
ownership arrangements for GBEs prior to the Government's consideration to privatise a GBE and often include the impacts on the market and the community. 
 
The following GBEs are not currently in the process of privatisation:  
 ASC Pty Ltd; 
 Australia Postal Corporation; GPA/ACC/AUS/9 
- 18 - 
   Defence Housing Australia; 
 NBN Co Ltd. 
The following GBEs are not currently in the process of privatisation, but were created to address a 
specific market failure with the stated intention of privatising them in the future: 
 
 Australia Rail Track Corporation (ARTC)  – The Government will undertake a scoping 
study in 2015-16 to determine options for the future management of the ARTC including 
possible privatisation. 
 Moorebank Intermodal Company  - MIC was established as a Government Business 
Enterprise as this was considered the best vehicle to deliver the project. It is proposed that MIC will be privatised once the intermodal terminal is built and operational, subject 
to market conditions. 
For completeness, the following lists former Co mmonwealth GBEs that have been privatised: 
 
 Adelaide Airport; 
 Aerospace Technologies of Australia; 
 AUSSAT; 
 Australian Airlines; 
 Australian Industry Development Corporation; 
 Australian National Rail; 
 Avalon Airport Geelong; 
 Brisbane Airport; 
 Broadcast Australia; 
 Canberra Airport; 
 Commonwealth Bank; 
 Commonwealth Funds Management; 
 CSL (Commonwealth Serum Laboratories); 
 Darwin and Alice Springs Airport; 
 Hobart Airport; 
 Housing Loans Insurance Corporation; 
 Medibank Private; 
 Melbourne Airport; 
 Moomba to Sydney gas pipeline; 
 National Rail Corporation; 
 National Transmission Network; GPA/ACC/AUS/9 
- 19 - 
   Perth Airport; 
 QANTAS; 
 Snowy Mountains Engineering Corporation; 
 Telstra. 
4  ANNEX 5 - SERVICES 
55. Some important services categories su ch as for example, telecommunications 
services, air transport services of passengers and freight, land transport services are not 
covered. 
Australia has made a reciprocal offer based on the overall services coverage of other Parties. 
Australia has not offered transport and telecommunica tion services in our most recently concluded 
trade agreements with Japan and Korea. Australia will consider the request for these additional 
services to be covered. 
 56. Please explain the reasons for excluding ea ch of these services categories and if 
relevant, provide references to  applicable legislation. Coul d Australia consider offering 
these services? 
Telecommunications  – Australia has based the exclusion of these on the services coverage of 
other Parties. 
 Transport  – Australia has based the exclusion of these on the services coverage of other Parties. 
 
Australia will consider the request to cover these services. 
 5  ANNEX 7 - GENE RAL RESERVATIONS 
57. Please explain in more detail the scope of  each note proposed under Annex 7. In 
particular, please reply to the following questions. 
a. Note 1.a. SMEs: does this exemption cove r both existing measures as well as 
any future measure which could be introduced? Does this cover measures 
which could be introduced by  any level of government? 
Yes, this exemption does cover both existing measures as well as any future measure which could 
be introduced. 
 
Yes, this does cover measures which could be introduced by any level of government.  
This note is important to the Australian Governments while existing trading partners, as well as 
some WTO GPA members, ma intain similar notes. 
 
What is the purpose of this general no te allowing for such a broad exclusion 
given that the SMEs' share of Commonw ealth procurement far exceeds the 10% 
target (34.4% of total value for 2013-2014, 32% for 2012-2013, 29% for 2011-2012) and since there does not seem to be currently any measures at 
central level discriminating in favour of SMEs? 
Australian governments recognise the important contribution SMEs make to the economy and 
employment in particular. For this reason, Commonwealth and State and Territory governments 
seek to ensure that Australian SMEs have the same opportunities as international competitors to 
participate in procurement opportunities. SME participation schemes aim to assist competitive Australian SMEs to participate in major projects by encouraging innovation, expansion of capability 
and investment opportunities. 
 GPA/ACC/AUS/9 
- 20 - 
  The Commonwealth Procurement Framework allows Commonwealth entities to procure goods and 
services from an SME with at least 50% Indigenous ownership. 
 The Indigenous Procurement Policy (IPP) is also with in the scope of this exclusion. The policy has 
three key components: a target for purchasing from Indigenous enterprises; a mandatory 
set-aside to direct some Commonwealth contracts to Indigenous enterprises, and; minimum Indigenous participation requirements for certain Commonwealth contracts. Further information on 
the IPP can be found at 
http://www.dpmc.gov.au/indigenous-affairs/public ation/commonwealth-indigenous-procurement-
policy.  
 
b. Note 1.b.: please explain what is cove red by "measures to protect national 
treasures…" 
This exemption is required to ensure the Australian Government can protect and maintain national 
treasures. Heritage legislation in Australia protects national treasures of artistic, historical or 
archaeological value. These laws include the Aboriginal and Torres Strait Islander Heritage 
Protection Act 1984  which protects areas and objects that are of particular significance to 
Aboriginal people. 
 An example of how this Note is used includes the relocation of indigenous remains or artefacts from overseas or interstate. These items need to be treated sensitively and according to cultural 
customs. 
 This Note is required by the Australian Government and is included in all of Australia's existing 
trade agreements. This Note is also included as an exemption at paragraph 2.6 in the 
Commonwealth Procurement Rules.  
c. Note 1.c.: please explain what are "m easures for the health and welfare of 
indigenous people". 
Indigenous health and welfare is a sensitive issue for Australia. Currently the life expectancy for 
Indigenous and Torres Straight Islanders population born in 2010-2012 is estimated to be 
10.6 years lower than that of non-indigenous males and 9.5 years for females. Reducing the gap 
in life expectancy is a policy priority for the Australian Government.  
The Commonwealth Government does not currently have any specific indigenous health and 
welfare procurement policies. However, the Australian Government made provisions for Indigenous Health funding in the 2014-2015 Budget in which a new funding allocation methodology is to be 
developed by the Department of Health during  2014-2015 and implemented from 2015-2016. This 
funding is to ensure investments are directed to areas of need, priorities and population growth 
and deliver the most effective outcomes. It is expe cted that delivery of some of these outcomes 
will need to be addressed through targeted procur ement activity specific to the health and welfare 
needs of the indigenous population. Addi tional information is available here: 
https://www.health.gov.au/Indigenous . 
 
Individual sub-central governments provide fund ing and programs for indigenous populations. 
These health and welfare programs target the type of indigenous communities that are specific to 
each state or territory. 
 
This note is required by the Australian Government and is included in all of Australia's existing trade agreements. This note is also required by Australia's sub-central governments.  
d. Note 1.d.: please explain what are "measures for the economic and social 
advancement of indigenous people". 
The Indigenous Procurement Policy (IPP) is in the scope of this exclusion. The policy has three key 
components: a target for purchasing from Indigenous enterprises; a mandatory set-aside to direct 
some Commonwealth contracts to Indigenous enterprises, and; minimum Indigenous participation requirements for certain Commonwealth contracts. Further information on the IPP is available at: 
http://www.dpmc.gov.au/indigenous-affairs/public ation/commonwealth-indigenous-procurement-
policy . GPA/ACC/AUS/9 
- 21 - 
  This note is required by the Australian Government and is included in all of Australia's existing 
trade agreements. This note is also required by Australia's sub-central governments.  
e. Note 1.e.: please explain what is cove red by the "procurement of storage and 
hosting of government data and related services". 
Australia requires flexibility to specify the locati on of data storage and hosting services where 
there is a legitimate reason to do so, such as privacy or security requirements. For example, the 
Australian Government holds personal data onshore, in accordance with legislation such as the 
Privacy Act 1988 , which regulates the handling of personal information about individuals. 
 Australia is not seeking to prevent suppliers from other parties from providing data storage and 
related services to Australia, but is seeking that such services be provided onshore when 
government data is involved.  
f. Note 1.g.: please define the exact sc ope of exemption for procurement of 
"motor vehicles " and give examples. 
Australia produces motor vehicles and motor vehicle components domestically, and currently the 
Commonwealth procurement framework requires the Australian Government to purchase motor 
vehicles from Australian manufacturers (where th ey are operationally suitable and meet safety 
requirements).  
This Note is required by the Australian Government and is included in all of Australia's existing 
trade agreements. This note is also required by Australia's sub-central governments.  
Does the exemption apply to components of motor vehicles? 
 
Australia's exemption only covers the procurement of motor vehicles. 
 
Exceptions on motor vehicles have long been in place to ensure GP supports the 
Australian auto manufacturing industry. Given however that all Australian auto manufacturers will cease operations by 20 17, is this exception still required in 
Australia's GPA offer? And even if this were not to be the case, what is the 
justification for closing such a large sector to competition in public procurement? 
 
Yes, this exemption is required. Governments must continue to provide certainty to the automotive industry. This Note is also included in all of Australia's existing trade agreements and is 
required by Australia's sub-central governments. 
 We note however that this does not prevent governments from purchasing vehicles not produced in Australia. In the 2014-2015 financial year the Commonwealth purchased A$3,000,000 of 
specialised motor vehicles from BMW and in 2013-2014 the Commonwealth purchased 
A$1,800,000 of specialised vehicles from Mercedes Benz. This reflects that Australia has not closed off the motor vehicle sector to competit ion from overseas auto manufacturers. 
 
g. Note 1.i.: please explain what specific situations this exemption would refer to. 
Note 1.i. relates to a covered entity conducting a procurement on behalf of a non-covered entity. 
This note is required for situations where a procuring entity conducts a bulk purchase on behalf of 
a number of small non-covered entities (e.g. community organisations) in order to aggregate their demand to achieve better value outcomes. Examples of this note include:  
 the bulk purchase of disability access fitted motor vehicles and then on selling them to 
group homes who are contracted to deliver services to the disabled; and 
 the bulk purchase by Department of Health  for hospital sheets on behalf of various 
hospitals. 
This is an exclusion also required by Australia's sub-central governments and is required for 
consistency across trade agreements. GPA/ACC/AUS/9 
- 22 - 
   
h. Note 1.j.: please explain what specific situations this exemption would refer to. 
Note 1.j. is required for the procurement of goods, services and construction for use outside of 
Australia. Examples of these types of procurement may include: 
 
 the construction of embassies by the Depa rtment of Foreign Affairs and Trade; and 
 the construction of immigration detention centres outside of Australia, for example, in 
Papua New Guinea and Nauru. 
T h i s  n o t e  i s  r e q u i r e d  b y  t h e  A u s t r a l i a n  G o v e r n m e n t  a n d  i s  c a p t u r e d  i n  A u s t r a l i a ' s  t r a d e  
agreements. This note is also contained in ex emption 8 of Division 2 of the Commonwealth 
Procurement Rules. 
 
i. Note 2: what is this supposed to cover? Could Articles III (security exceptions) 
and II (exceptions in case of internatio nal aid/ international agreements) not 
address the issues you mention? 
Articles III (security exceptions) and II (exceptions in case of international aid/ international 
agreements) in the text of WTO-GPA relate to national security only. Australia requires an 
exception which covers international peace and security. 
 This note is required by the Australian Government and is captured in the chapter text of Australia's trade agreements, including GATS. This note is included as an exemption at paragraph 
2.6 in the Commonwealth Procurement Rules. 
 
j. Note 3: this agreement does not apply to procurement funded by grants and 
sponsorship payments. Please specify whic h are the main entities/categories of 
entities which provide funding for procurement through grants and sponsorship payments (please see questions for Annex 1 and 2). 
This note relates to government purchasing which is funded from grants and sponsorship from the 
private sector. For examples, in the 2013-2014 financial year the Australian War Memorial received a A$1,000,000 sponsorship from BHP to  fund the establishment of a World War One 
gallery. In the 2013-2014 financial year the Nati onal Museum of Australia received A$302,000 
from the Australian Council for Arts to support travelling exhibitions. 
 This Note is required by the Australian Government and is captured in the chapter text of 
Australia's trade agreements. This note is also contained in exemption 4 of Division 2 of the 
Commonwealth Procurement Rules.  
In case of procurement funded by gran ts and sponsorship payments, are there 
any conditions attached to such fundin g/grants/sponsorship payments, such as 
for example, the obligation to buy locally)? What is the legal basis for such restrictions? 
Australia does not collect data for government entities funding procurements by grants and 
sponsorships, including information on any conditions which may be placed on these.  
Sub-central governments receive a number of sponsorships. Examples may include cultural 
institutions and sporting venues that attract sponsorship from the private sector.  
Sponsorship from the private sector could result in in-kind benefits such as receipt of goods and 
services to support a particular initiative at a reduced rate or free of charge. Value for money is usually a consideration before an entity would enter into a sponsorship arrangement.  
Do you have any figure for the proporti on of procurement that you propose to 
exclude with such Note? 
 
Australia does not have access to the amount of sponsorship and grant payments. Commonwealth 
entities are currently not required to report on grants or sponsorships. GPA/ACC/AUS/9 
- 23 - 
   
If valuable procurement benefits of fund ing in the form of grants, would that 
procurement be excluded (i nfrastructure for example?) 
 
Australia is unaware of any examples where a private company would provide sizeable grants or 
sponsorship to the Commonwealth Government for infrastructure. These instances are more likely to be Public Private Partnerships whic h are covered under Australia's offer. 
 
k. Note 4 refers to procurement as a result  of "unsolicited innovative proposals". 
Please define what is covered by "unso licited innovative proposals" and what is 
the relevant legal basis. 
Unsolicited innovative proposals in the Commonwealth Procurement Rules are procurements which 
are made under exceptionally advantageous conditions that arise only in the very short term and are not routine procurement from regular suppliers. 
 
The procurement of unsolicited innovative proposals is a condition for limited tendering and is included at paragraph 10.3(c) in the Commonwealth Procurement Rules. 
 
This Note is required by the Australian Government and is included in all of Australia's trade agreements. This Note is also required by Australia's sub-central governments.  
If limited tendering applies to unsolicit ed innovation proposals, what is the 
reason for excluding completely this? We would welcome any information on 
what kind of procurement projects would be excluded. 
 
As outlined above, unsolicited innovative proposals in the Commonwealth Procurement Rules are procurements which are made under exceptionally advantageous conditions that arise only in the 
very short term and are not routine procurement from regular suppliers. 
 The procurement of unsolicited innovation proposals is a condition for limited tendering and is included at paragraph 10.3(c) in the Commonwealth Procurement Rules. 
 
Australia requires greater certainty about how unsolicited innovative proposals are treated under the GPA and would be happy to discuss this further. 
 
This Note is required by the Australian Government and is included in all of Australia's existing trade agreements. This Note is required by Australia's sub-central governments. 
 
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