Australian Government
Department of Finance and Deregulation
Finance Circular
No. 2011/02
To all departments and agencies subject to the Financial Management and
Accountability Act 1997 (FMA Act) and bodies under the Commonwealth
Authorities and Companies Act 1997 (CAC Act) subject to the Commonwealth
Procurement Guidelines (CPGs).
Commonwealth Procurement Guidelines Exemption for Indigenous Businesses
Purpose
The purpose of this Finance Circular is to advise all departments, agencies and
relevant CAC Act bodies1, subject to the CPGs, of the introduction of an exemption to
the Mandatory Procurement Procedures of the CPGs for Indigenous SMEs.
The exemption aims to:

provide increased opportunities for greater access to the Australian
Government procurement market for all Indigenous SMEs;

raise awareness among officers undertaking procurement of the Government’s
commitment to the Closing the Gap strategy on Indigenous disadvantage;

complement implementation of the enhanced Indigenous Opportunities Policy
(IOP) administered by the Department of Education, Employment and
Workplace Relations (DEEWR).
The Exemption
The exemption for Indigenous SMEs will read as follows:
The Mandatory Procurement Procedures do not apply to:
17. procurement of property or services from a Small or Medium Enterprise with at
least 50% Indigenous ownership2.
The exemption can be applied to any procurement over $80,000.
A small and medium enterprise is defined as an Australian or New Zealand business with
fewer than 200 full time equivalent employees, as stated in the CPGs.
1
Relevant CAC Act bodies are those bodies listed in Schedule 1 of the Commonwealth Authorities and
Companies Regulations 1997.
2
FMA Regulation 7b – Commonwealth Cleaning Services Guidelines (Act s64) must be complied within the
use of this exemption for the procurement of cleaning services.
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Finance Circular 2011/02
Department of Finance and Deregulation
Target Audience
This circular applies to all departments and agencies subject to the FMA Act and to
relevant CAC Act bodies that must comply with the CPGs.
Key Points
The exemption allows Government agencies and relevant CAC Act bodies to contract
directly with indigenous SMEs without the need to conduct a full tender process, on the
condition that the procurement represents value for money, the key principle of the
Governments procurement framework.
Use of the exemption aims to reduce the costs and administrative requirements for
Indigenous businesses, Government agencies and relevant CAC Act bodies.
Background
In accordance with, the Council of Australian Governments National Partnership
Agreement on Indigenous Economic Participation, the Government is committed to
increasing the opportunities available to Indigenous businesses, exploring options for
Indigenous businesses to increase their share of government procurement, and
assisting relationship building with Indigenous suppliers particularly those supplying
Government.
John Grant
First Assistant Secretary
Procurement Division
19 May 2011
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Finance Circular 2011/02
Department of Finance and Deregulation