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Ethical supplier requirements
The Queensland Government's Buy Queensland 2023 approach to government procurement is about supporting quality, local jobs, boosting the Queensland economy and leaving a lasting positive legacy for current and future generations of Queenslanders. This includes investing in ethically, environmentally and socially responsible suppliers that deliver genuine, quality, secure and ongoing local jobs with fair pay and safe working conditions for Queenslanders.
When you tender for a share of Queensland Government business, we consider whether you're an ethical supplier who upholds the ethical, environmental and social commitments set out in our tender documents, contracts, and relevant policies and laws.
We will make responsible public procurement choices by only doing business with suppliers that comply with the ethical supplier requirements established in the:
- Ethical Supplier Threshold
- Ethical Supplier Mandate (where applicable)
- and
- Queensland Government Supplier Code of Conduct 2023.
Read more about how the ethical supplier requirements of the Ethical Supplier Threshold and Ethical Supplier Mandate impact you as a supplier:
Ethical Supplier Mandate for suppliers
From 1 February 2024, the Ethical Supplier Mandate (the Mandate) applies to the procurement categories of General Goods and Services, Information and Communication Technology, Medical, Social Services and all future procurement categories under the Queensland Procurement Policy (QPP).
The Ethical Supplier Mandate outlines how the Queensland Government manages instances where suppliers fail to:
- meet requirements of the Queensland Procurement Policy
- comply with a policy, legislative or contractual requirement
- fulfil commitments made
- abide by the law.
Read the:
The Mandate ensures that we conduct business with ethical, environmentally and socially responsible suppliers while removing unethical behaviour from the supply chain.
Unethical behaviour includes:
- a breach of a supplier's predetermined contractual obligations
- actions that breach policy or laws.
The Mandate benefits suppliers, workers and the broader Queensland community by:
- ensuring suppliers are treated fairly and not exposed to undercutting and unjust competition
- making Queensland workplaces fairer and safer
- ensuring that Queensland taxpayers' money is used to build the local economy and support jobs.
Note: The Mandate complements the best practice principles for procurement, which continue to apply to major and declared projects.
Who is subject to the Mandate
When the Mandate applies
The Mandate has been expanded to all procurement categories. Commencement dates for its application to specific procurement categories are as follows:
Entity | Building Construction and Maintenance | Transport Infrastructure and Services | All other categories under the QPP (existing and future) |
---|---|---|---|
Budget sector agencies | From 1 August 2019 | From 1 October 2019 | From 1 February 2024 |
Commercial entities
| From 31 March 2023 | From 31 March 2023 | From 1 February 2024 |
Government owned corporations | From 31 March 2023 | From 31 March 2023 | From 1 February 2024 |
Statutory bodies | From 1 February 2022 | From 1 February 2022 | From 1 February 2024 |
Water entities
| From 31 March 2023 | From 31 March 2023 | From 1 February 2024 |
How the Mandate works
The Mandate will only impact suppliers that a decision maker, on advice from the Tripartite Procurement Advisory Panel (the Panel), considers knew or ought to have known that its conduct was in breach of a requirement of the Mandate.
The Mandate is not intended to penalise one-off honest mistakes or oversights which the supplier promptly corrects.
If the procuring agency suspects a supplier is non-compliant under the Mandate, they will refer the alleged non-compliance to the Queensland Government Procurement (QGP) Compliance Branch for investigation.
Where the QGP Compliance Branch finds evidence to support that a non-compliance occurred, the matter will be referred to the Panel.
The Panel is an independent body that provides objective advice and penalty recommendations to the decision maker.
The panel makes recommendations on a case-by-case basis, depending on the severity of the breach.
The Mandate's penalty framework
From 1 February 2024, application of the Mandate's penalty framework will expand to suppliers who breach contractual obligations, policies and/or laws in all existing procurement categories under the Queensland Procurement Policy (QPP) as well as any future categories. The expanded penalty framework will comprise of:
- a whole-of-government component that operates uniformly across all procurement categories under the QPP
- and
- a category-specific component that is fit for purpose.
Penalties under the Mandate are imposed through demerit points and/or sanctions (i.e. potential for a maximum 12-month ban from supplying to government) which are issued on the basis of a sliding scale:
- minor breach – 2 demerit points
- moderate breach – 5 demerit points
- major breach – 10 demerit points
- aggravated breach – 20 demerit points.
If a supplier accumulates 20 demerit points in a 12-month period, they face the potential for sanction—including loss of prequalification status and exclusion from future opportunities as a government supplier.
If a supplier is sanctioned and has an existing contract with government, any extension options under that contract won't be exercised.
Penalties are issued for non-compliances that occur on or after the date the Mandate has been applied to the relevant procurement category. Penalties are not applied retrospectively. Demerits expire 1 year from the date they are issued.
Information on penalties under the Mandate for breaches of the Threshold is available at Ethical Supplier Threshold for suppliers.
Tender documentation and procurement contracts will contain provisions that reflect the Mandate's application.
Contact us
- Email: ethicalsupply@epw.qld.gov.au
- Phone: 1300 105 030
Also consider...
- Subscribe to our newsletter for supplier updates.
- Make a complaint about a Queensland Government procurement process.
- Read more about best practice principles for procurement.
- Learn about the Ethical Supplier Threshold.
- Learn about Ethical Supplier requirements.
Ethical Supplier Threshold for suppliers
The Ethical Supplier Threshold (the Threshold) strengthens the Buy Queensland approach to government procurement and is the Queensland Government's response to the 2018 Parliamentary Committee report A fair day's pay for a fair day's work? Exposing the true cost of wage theft in Queensland.
The Threshold outlines the wage and entitlement standards expected of suppliers who wish to do business with the Queensland Government. Compliance with the Threshold is a precondition for supplying to government.
As part of Buy Queensland 2023, we have enhanced the Threshold to ensure employee wages are paid in accordance with an applicable modern award, including providing award-based wages for people with disability using the Supported Wage System where appropriate.
For more information on the Threshold:
- refer to Clause 19 of the Queensland Procurement Policy 2023
- read the Ethical Supplier Threshold Guidelines.
Note: The guidelines will be progressively reviewed as part of Buy Queensland 2023 implementation.
When the Threshold applies
From 1 August 2019, the Threshold applies to suppliers across all categories that do business with the following buyers:
- budget sector agencies
- government-owned corporations
- water management boards
- statutory bodies
- special purpose vehicles.
An example of how the Threshold works
A procuring agency calls for tenders.
The invitation to offer requires suppliers to complete the Ethical Supplier Threshold declaration to disclose any previous instances of sham contracting or paying employee wages below the applicable modern award, including failing to pay the employer's superannuation contribution.
The procuring agency determines the supplier pays their employees below the applicable modern award rate of pay and therefore deems the supplier's offer to be non-compliant.
The agency subsequently excludes the supplier's offer from the tender process.
Contact us
- Email: ethicalsupply@epw.qld.gov.au
- Phone: 1300 10 50 30
Also consider…
- Subscribe to our newsletter for supplier updates.
- Make a complaint about a Queensland Government procurement process.
- Read more about best practice principles for procurement.
- Find more information on ethical supplier requirements.
- Learn about the Ethical Supplier Mandate.
- Read more about Buy Queensland 2023.
Meeting ethical supplier requirements
The Buy Queensland approach has been strengthened with the introduction of an Ethical Supplier Mandate.
You will start to see new ethical supplier requirements in tender documents.
We have developed a checklist and resources to help you in your next tender.
Consider these questions when demonstrating how your organisation's work meets ethical supplier requirements:
- Does your business meet the Ethical Supplier Threshold?
- Are you an ethical supplier who honours commitments made in your tender and contract?
- Do you comply with all policies and laws?
Completing your tender
Make sure your response demonstrates you meet the Ethical Supplier Threshold.
You will be required to make certain commitments in your tender and ultimate contract should you be successful. These commitments can relate to:
- workplace health and safety
- industrial relations
- training and apprenticeships
- local employment
- Indigenous employment or business engagement
- small business engagement
- other requirements.
Breaches of these tender and contract commitments could be a breach of the Ethical Supplier Mandate.
We may request evidence. We may also verify the information you provide with relevant regulatory bodies. You may see clauses in contracts related to information access and sharing.
If you disagree with our decision
If we suspect there has been unethical behaviour, we give you the opportunity to respond to all allegations and actions at multiple points in the process before a final decision.
A recommendation on penalties will be made to the procuring agency by the independent Procurement Advisory Panel. An appeals process is also available if you feel unjustly penalised.
Contact us
- Email: ethicalsupply@epw.qld.gov.au
- Phone: 1300 10 50 30
Also consider…
© The State of Queensland 1995–2024
- Last reviewed: 08 Sep 2021
- Last updated: 08 Sep 2021