22/01/2026
While the recent updates to the Commonwealth Procurement Rules (CPRs) that commenced on 17 November 2025 focused on expanding opportunities for Australian small and medium enterprises, a new wave of legislative scrutiny is brewing in the Senate. Three Private Senator’s Bills currently before the Finance and Public Administration Legislation Committee (the Committee) signal an increasing focus on contractor ethics, transparency, and remuneration.
These Bills represent a potential ‘roadmap’ for future, government-led reforms, and while Private Member’s Bills rarely pass, clients engaged in Commonwealth contracting should take notice of the likely direction of current political thinking.
The legislative package
The three Bills under inquiry propose significant changes to the current procurement framework:
1. Public Governance, Performance and Accountability Amendment (Ban Unethical Contractors) Bill 2025 (Cth) (Ban Unethical Contractors Bill)
Introduced by Senator Barbara Pocock (Greens), this Bill aims to amend the Public Governance, Performance and Accountability Act 2013 (Cth) to mandate that Commonwealth Government contracts cannot be awarded to suppliers engaged in ‘unethical conduct’. The Bill proposes implementation of a public register of excluded suppliers and defines ‘unethical conduct’ broadly to include poor labour practices or tax avoidance.
2. Parliamentary Joint Committee on Public Consultancy and Services Contracts Bill 2025 (Cth) (Joint Committee Bill)
This Bill, introduced by Senator Richard Colbeck (Liberal Party of Australia), proposes a new Parliamentary Joint Committee to enhance transparency and provide rigorous oversight of consultancy contracts. It suggests mandatory Parliamentary scrutiny for all contracts exceeding $2 million in value.
3. Remuneration Tribunal Amendment (There for Public Service, Not Profit) Bill 2025 (Cth)
Introduced by Senator Jacqui Lambie (Jacqui Lambie Network), this Bill seeks to cap remuneration for departmental secretaries and other public office holders at $430,000, signalling a political appetite for ensuring ‘value for money’ in public service expenditure.
Why this matters now?
Even if these specific Bills do not pass in their current form, they reflect a view on the need for increased scrutiny in public spending. The Department of Finance has already raised criticisms regarding the broad definitions and administrative complexity of these Bills (for example, the definition of ‘unethical conduct’ is very broad), indicating that while the intent for reform is high, the final mechanisms may be different.
Commonwealth Government agencies and their officials, who are bound by the Commonwealth Procurement Rules (CPRs), should consider the following operational impacts:
- Given the Ban Unethical Contractors Bill has been referred for inquiry, agencies could use this as an opportunity to reflect on existing processes. Even without legislative change, there is value in ensuring that the documentation of a supplier’s ethical conduct during the value-for-money assessment phase—per CPR 4.5—is robust enough to meet increasing scrutiny in this area.
- To align with the broader trend toward transparency signalled by the Joint Committee Bill, agencies should proactively refine their procurement processes to ensure high standards of accountability under the existing CPRs. Practical steps include implementing internal early warning triggers for contracts approaching $2 million to manage potential variations more effectively and investing in more precise pre-tender scope definitions to reduce the need for mid-contract changes. Additionally, officers can enhance scrutiny readiness by standardising variation risk assessments for long-term consultancies and ensuring that value-for-money justifications are contemporaneously documented and audit-ready, thereby demonstrating rigorous self‑oversight that aligns with current political expectations for public expenditure.
- To prepare for potential future requirements around transparency and remuneration, agencies may need to review current tender documentation requirements to ensure they capture sufficient, granular data from suppliers regarding corporate structures and executive remuneration to satisfy potential future legislative demands.
Looking ahead
The Committee is due to report back on these Bills by March 2026. These dates will be a key milestone. The final reports will indicate whether the Bills gain necessary cross-party support or if the Government plans to introduce its own, potentially more streamlined, legislation to address these integrity concerns.
Griffin Legal specialises in providing procurement and tendering advice to our government clients, including tender documents, procurement processes, negotiation with preferred suppliers and contracting and subcontracting. If you have any questions about procurement and tendering, contact our expert privacy and governance team to discuss further.