Ethical supplier mandate and ethical supplier threshold
We are committed to engaging with suppliers who deliver genuine, secure ongoing jobs with fair pay and safe working conditions for Queenslanders.
We developed the Ethical Supplier Threshold (the Threshold) and Ethical Supplier Mandate (the Mandate) as complementary policies for the Buy Queensland procurement approach.
The Threshold reflects the minimum legal responsibilities expected of all suppliers who want to do business with the Queensland Government. It applies to all Queensland Government suppliers in all categories.
The Mandate outlines how the Queensland Government will manage instances where a supplier fails to comply with a policy requirement, regulatory requirement, or contractual obligation and how penalties may be applied.
The Mandate and Threshold are intended to drive positive behavioural change. They are not intended to punish accidents or honest mistakes (that are found and corrected), but rather negligent, deliberate and/or repeated behaviour.
The Ethical Supplier Threshold
The Threshold applied from 1 August 2019 to any procurement completed by a procuring agency covered by the Queensland Procurement Policy (QPP).
The Threshold sets the standard for suppliers to do business with the Queensland Government. We want to work with businesses that are ethically, environmentally and socially responsible, and this includes suppliers that pay their workers fairly.
Find out more about the Ethical Supplier Threshold for suppliers.
The Ethical Supplier Mandate
The enhanced Ethical Supplier Mandate 2021 applies from 1 September 2021.
The Mandate complements the Threshold and benefits suppliers, as well as 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 quality Queensland jobs.
The Mandate ensures businesses supplying to government uphold their social, economic and environmental commitments made in tenders and contracts, or required by policies or laws.
Key enhancements from the 2021 update
- Aggravated non-compliance – a new category of breach where 20 demerits and a sanction can be issued in severe cases of non-compliance.
- Contractual options to apply contract-based measures such as liquidated damages for breaches of the Mandate or Threshold, or publication of information about sanctions.
- Compelling evidence of a breach having occurred (e.g. pay slips indicating underpayment of wages or superannuation, or Australian Taxation Office records, bank statements) without the need for a regulator decision.
- The Tripartite Procurement Advisory Panel (the Panel) superseding the existing Procurement Penalties and Sanctions Committee (PPSC). The Panel is an independent expert body comprising equal representation from employers and unions, and is chaired by an independent government appointee.
Who does the Mandate apply to?
The Mandate is being implemented in phases. The following budget sector agencies' categories commenced:
- 1 August 2019 for Building, Construction and Maintenance
- 1 October 2019 for Transport, Infrastructure and Services.
The Mandate applies to statutory bodies within the same categories, commencing:
- 1 February 2022 for Building, Construction and Maintenance
- 1 February 2022 for Transport, Infrastructure and Services.
Suppliers in other categories of spend, and suppliers to government-owned corporations, may start to notice references to the Ethical Supplier Mandate in tenders and contracts from 2022.
See the table below for more information.
| Budget sector agencies | Government owned corporations | Statutory bodies | Special purpose vehicles | |
|---|---|---|---|---|
| Ethical Supplier Threshold | From 1 August 2019 | From 1 August 2019 | From 1 August 2019 | From 1 August 2019 |
| Ethical Supplier Mandate | Building, Construction and Maintenance category from 1 August 2019 Transport, Infrastructure and Services category from 1 October 2019, other categories determined in 2022. | Determined in 2022 | From 1 February 2022* *Excludes Queensland Rail, Seqwater, Mt Isa Water Board and Gladstone Area Water Board | Determined in 2022 |
The policy provisions outlined in the Ethical Supplier Mandate 2021 apply from the date of implementation.
Buying for Queensland Government
All officers conducting procurement on behalf of the Queensland Government will need to embed appropriate policy processes into all purchasing activities and procedures. This includes adding all necessary policy references and clauses into supplier contracts and ensuring the application of the Mandate and Threshold down the supply chain.
Government buyers need to do the following:
- Check the Procurement Compliance Portal – Before proceeding with procurement, government buyers must check that suppliers are not subject to current penalties under the Mandate or Threshold. Procuring agencies must ensure that suppliers are compliant before procuring, unless engaging a prequalified supplier or completing a low-value threshold procurement.
- Investigate non-compliance – If government buyers are advised that a supplier may not have complied with the Threshold or may have breached the Mandate, agencies are required to investigate. Guidance on this process will be available for buyers.
The Tripartite Procurement Advisory Panel
The role of the Tripartite Procurement Advisory Panel (the Panel) is to provide robust, independent, expert advice and recommendations to Directors-General or other decision makers on the application of penalties under the Mandate and the Threshold.
The Panel will also provide government agencies with advice on procurement, contract, audit and investigation processes and systems.
The Panel comprises 12 members with a diverse range of skills and experience across building and construction, including:
- industrial relations
- work health and safety
- training and apprenticeships
- construction contract assessment and interpretation
- major procurement.
Panels will be convened and composed of relevant membership, depending on the type of alleged breach. Under the tripartite model, each Panel will have 3 members: a union nominee, an employer nominee and the Chair as an independent government representative.
The Chair will select the union and employer organisation members for each Panel from the pool, based on who has the best expertise for the matter being considered.
Find out more about the Panel membership.
Ensuring compliance
On 1 July 2018, a Compliance Branch was established to audit and handle complaints about supplier compliance under the Buy Queensland approach. The Strategy and Coordination Unit within this Branch administers the Ethical Supplier Mandate and Ethical Supplier Threshold. Find out more about compliance.
Read the Mandate and Threshold
- Ethical Supplier Mandate 2021 (PDF, 659.11 KB)
- Guidelines: Ethical Supplier Mandate (PDF, 783.03 KB)
- Guidelines: Ethical Supplier Threshold (PDF, 818.45 KB)
Contact us
Related information
- Last updated:
- 31 August 2022