RESTRICTED  
  
GPA/ACC/AUS/24  
 
16 February 2017  
(17-0941) Page: 1/4 
Committee on Government Procurement  Original: English  
 
 ACCESSION OF AUSTRAL IA TO THE AGREEMENT ON GOVERNMENT PROCUR EMENT  
COMMUNICATION FROM A USTRALIA  
The following communication, dated 16 February 2017, is being circulated at the request of the 
Delegation of Australia.  
 
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RESPONSE TO COMMENTS  FROM UKRAINE (GPA/ACC/AUS /20)  REGARDING THE 
REVISED OFFER OF AUS TRALIA (GPA/ACC/AUS/ 17) 
Annex 1 – Central Governmental Entities  
 
1. Ukraine would like Australia to clarify if the list of entities provided in the Annex 1 
of the revised offer includes all Central Governmental Entities of Australia.  
a. If yes, please provide an explanation of which entities are not covered under 
the offer according to paragraph 1. of Notes to Annex 1.  
b. If no, please provide the justification and criteria of excluding Central 
Governmen tal Entities from the list of entities covered by the Annex 1.  
The listing in Annex 1 represents a list of central government entities that are subject to 
the Australian Government 's procurement framework.  
 
Note 1 to Annex 1 reflects that in Australia eac h entity should be looked at as a separate 
legal entity. Where an entity is listed in Annex 1, all the functions performed by that 
entity are covered, unless expressly excluded.  
 
2. Ukraine would like Australia to provide explanation of excluding the procurem ent 
of motor vehicles by any entity listed in Annex 1 from the coverage of the Agreement.  
Motor vehicles are a sensitive issue for Australian governments. Currently, the Australian 
Government 's procurement framework requires the Australian Government to pu rchase motor 
vehicles from Australian manufacturers (where they are operationally suitable and meet safety 
requirements).  
 
We have moved the Note from Annex 7 in our original offer to Annexes 1,  2 and 3 so that it only 
applies to the Australian Government and to those states and territories that specifically require 
the motor vehicle exception. In addition to providing clarity, this ensures market access for GPA 
members to the procurement of motor vehicles in the three states and territories without the not e. GPA/ACC/AUS/24  
 
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  3. Ukraine would like to clarify how the reference to paragraph 1 of Article III of the 
Agreement on Government Procurement (Security and General Exceptions) in paragraph 
4. d. of Notes to the Annex 1 is related to the Australian industry capability progr am and 
its successor programs and policies? Can Australia provide the information about 
legislation that regulates the Australian industry capability program, its successor 
programs and policies and specify which activities are  involved in mentioned progra m? 
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 defence -related procureme nts 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:  http://www.defence.gov.au/SPI/Industry/AIC.asp . 
 
Annex 2 – Sub-Central Governmental Entities  
 
4. Could Australia provide an explanation on the thresholds for goods and services for 
sub-central government en tities which are set forth in Annex 2 of this offer? Can 
Australia explain the imposition of thresholds on levels prescribed in the Annex 2?  
The current threshold is similar to other GPA members, including the United States and Canada. 
The threshold is con sistent with state and territory commitments in Australia 's existing trade 
agreements.  
 
5. Ukraine would like to ask Australia to provide an explanation of excluding the 
procurement of health and welfare services, education services, utility services or motor  
vehicles for the entities listed for the Australian Capital Territory. Please provide the 
scope of goods or services subject to health and welfare services, education services 
and utility services.  
Australia, through a negative list approach, has offered ambitious and comprehensive coverage of 
services. We can confirm that the exclusion of the above services is required for the Australian 
Capital Territory (ACT) to be able to provide this high level of coverage. The exclusion of motor 
vehicles is consisten t with the ACT 's commitments in Australia 's existing trade agreements.  
 
The scope of the exceptions for health and welfare and education is limited to services. Goods in 
these areas are covered by the ACT 's offer.  
 
For utilities: this exclusion refers to u tilities 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 inclu de 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 servic es (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 (section 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 regulation s). 
 
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, l easing 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.  
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  6. Ukraine would like to ask Australia to provide an explanation of excluding the 
procurement of health and welfare services, education services, motor vehicles, 
procurement by Transport for N SW, related to the functions related to Transport 
Construction Authority, and The Country Rail Infrastructure Authority or its successor 
agencies for entities listed for New South Wales.  
Australia, through a negative list approach, has offered ambitious an d comprehensive coverage of 
services. We can confirm that the exclusion of the above services is required for New South Wales 
(NSW) to be able to provide this high level of coverage. The exclusion of motor vehicles is 
consistent with the NSW 's commitments in Australia 's existing trade agreements.  
 
The Transport Construction Authority was abolished 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 is necessary to cover legacy projects commenced 
under the Transport Construction Authority and the Country Rail Infrastructure Authority.  
 
7. Ukraine would like to ask Australia to provide an explanation of excluding the 
procurement of heal th services, education services, training services, art services, 
welfare services, government advertising and motor vehicles for the entities listed for 
Queensland. Please provide information about the scope of goods or services subject to 
health services , education services, training services, art services and welfare services.  
Australia, through a negative list approach, has offered ambitious and comprehensive coverage of 
services. We can confirm that the exclusion of the above services is required for Q ueensland to be 
able to provide this high level of coverage. The exclusion of government advertising and motor 
vehicles is consistent with Queensland 's commitments in Australia 's existing trade agreements.  
 
The scope of the exceptions for health, education , training, art and welfare is limited to services.  
 
8. Ukraine would like to ask Australia to provide an explanation of excluding the 
procurement of health and welfare services, education services, advertising services or 
motor vehicles for the entities list ed for South Australia. Please provide the scope of 
goods or services subject to health services, education services and welfare services.  
Australia, through a negative list approach, has offered ambitious and comprehensive coverage of 
services. We can con firm that the exclusion of the above services is required for South Australia 
(SA) to be able to provide this high level of coverage. The exclusion of motor vehicles is consistent 
with SA 's commitments in Australia 's existing trade agreements.  
 
The scope o f the exceptions for health and welfare services and education services is limited to 
services. Goods in these areas are covered by SA 's offer.  
 
9. Ukraine would like to ask Australia to provide an explanation of excluding the 
procurement of health and welfar e services, education services or advertising services 
for the entities listed for Tasmania. Please provide the scope of goods or services 
subject to health services, education services and welfare services.  
Australia, through a negative list approach, has  offered ambitious and comprehensive coverage of 
services. We can confirm that the exclusion of the above services is required for Tasmania to be 
able to provide this high level of coverage.  
 
The scope of the exceptions for health and welfare services and education services is limited to 
services. Goods in these areas are covered by Tasmania 's offer.  
 
10. Ukraine would like to ask Australia to provide an explanation of excluding the 
procurement of motor vehicles for the entities listed for Victoria.  
The exclusi on of motor vehicles is consistent with Victoria 's commitments in Australia 's existing 
trade agreements.  
 
 
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  Annex 5 – General Notes  
 
11. Ukraine would like to ask Australia to provide an explanation of excluding the 
procurement of health and welfare services f rom the coverage of the Agreement.  
Australia, through a negative list approach, has offered ambitious and comprehensive coverage of 
services. The exclusion of health and welfare services is required for Australia to be able to provide 
this level of coverag e. Health and welfare services are not routinely covered by GPA members.  
 
Annex 7 – General Notes  
 
12. Ukraine would like to ask Australia to provide an explanation for exception from 
application of the Agreement to any form of preference to benefit small and medium 
enterprises.  
Australian governments recognise the important contribution small and medium enterprises 
(SMEs) make to the economy and employment in particular. For this reason, Australian 
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 o pportunities.  The N ote does not stop foreign companies from 
winning contracts in Australia. The N ote on SMEs is consistent with Australia 's existing trade 
agreements.  
 
13. Can Australia provide additional detailed information about programs concerning 
preferen ce to benefit small and medium enterprises and legislation that regulates 
related activity that take place in Australia.  
Additional detail is available in Australia 's WTO GPA checklist. Please refer to Q14 in the checklist, 
in which the Australian Governme nt and State and Territory governments provided responses in 
relation to small and medium enterprises (SMEs).  
 
The SME N ote is also used to support businesses with Indigenous ownership:  
 
 the Australian government procurement framework allows Australian gov ernment 
entities to procure goods and servic es from an SME with at least 50% Indigenous 
ownership ; 
 the Indigenous Procurement Policy (IPP) is also within the scope of this exclusion. The 
policy has three key components: a target for purchasing from Indigen ous 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: 
https://www.dpmc.gov.au/indigenous -affairs/economic -development/indigenous -
procurement -policy -ipp. 
14. Ukraine would like to ask Australia to explain in detail the  scope of activities 
subject to application of paragraph 2.b. of the Annex 7 of the offer.  
This Note excludes all procurements by Australia 's covered entities from any other Australian 
government entity. Examples of this type of procurement may include:  
 
 Tied legal services – in relation to constitutional or trade law issues;  
 Maritime services;  
 Customs/quarantine services; and  
 Weather services – from the Bureau of Meteorology.  
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