The Queensland Procurement Policy 2026 (QPP 2026) commenced on 1 January 2026. It replaces the Queensland Procurement Policy 2023 (QPP 2023), aiming to make it simpler, fairer and easier to do business with Queensland Government agencies. The policy impacts Government agencies and their contractors, subcontractors and suppliers.
1. Why the change?
QPP 2026 responds to industry concerns about the complexity of the State's procurement system, promising to simplify tenders, cut red tape and open doors for small, family and regional businesses.
The new policy simplifies existing measures, shifting from prescriptive targets to achieving outcomes that maximise value for Queenslanders. It has five key pillars:
- Value for Queensland
- Local opportunities
- Easy to do business
- Open to new ideas
- Practical economic, environmental and social procurement.
2. Key differences between QPP 2023 and QPP 2026
The new framework introduces a tiered compliance approach that distinguishes between:
- Must – mandatory requirements
- Should – recommended best practice
- May – optional provisions
Many requirements that were mandatory under QPP 2023 have been reclassified as recommended or optional, giving agencies greater flexibility to tailor procurement processes to their specific needs.
Removal of 'Best Practice Industry Conditions' (other than for social services sector)
Following the pause announced in November 2024, QPP 2026 permanently removes 'Best Practice Industry Conditions' (BPICs), which had set the prior Government's expectations for wages and conditions to apply on higher value Government funded construction projects. For existing contracts that incorporate BPICs, the policy removal does not retroactively void these contract clauses, and parties must continue to follow the terms of the contract. The Government has retained BPICs for the social services sector – these are a simpler, one page set of principles which seek to support the sustainability of that sector, including through minimum contract durations and appropriate transition arrangements when suppliers are being changed.
Removal of 'Best Practice Principles'
The Best Practice Principles (BPP) were related to the BPICs and another policy of the prior Government; they set benchmarks for work health and safety, industrial relations and apprentice and trainee practices on Government projects. Under QPP 2023 Government agencies were required to adopt the BPPs for projects over $100M (or if a project was otherwise declared). This has been removed in QPP 2026. However, the Government has retained general commitments in relation to work health and safety and apprentices and training.
Removal of 'Ethical Supplier Threshold' and 'Ethical Supplier Mandate'
The Ethical Supplier Threshold and Ethical Supplier Mandate were policies of the prior Government which sought to enforce wage compliance and manage unethical supplier behaviour such as sham contracting. This occurred through a detailed demerits point system, overseen by a panel, and mandatory clauses in Government contracts. Serious breaches could result in suppliers losing prequalification status or being excluded from Government contracts for up to 12 months.
New 'Procurement Assurance Model' and 'Queensland Supplier Code of Conduct'
The new Procurement Assurance Model (PAM) replaces the Ethical Supplier Mandate and focuses on performance, capability, and ethical conduct through a simpler, more collaborative and incentive-based approach. Managed by the Procurement Assurance Branch, this framework integrates three interlinked assurance systems: a 'tiered rating' incentive scheme (commencing 1 January 2027), capability building, and accountability. Serious failures can still result in serious consequences, including making a supplier ineligible for Government contracts for up to 2 years.
A new Queensland Supplier Code of Conduct 2026 (Code) has also commenced. It sets out the Government's expectations for its suppliers, including managing conflicts of interest, demonstrating high business standards, safeguarding information and offering subcontractors payment terms that are no less favourable than those provided by the Government. The Code also requires work health and safety training and hazard management to be embedded, workers to be treated fairly, supporting a zero-tolerance approach to domestic and family violence and acting against human rights exploitation in the supply chain, including addressing modern slavery risks. Suppliers must also ensure their subcontractors comply with the Code.
Suppliers should maintain records of their compliance with the PAM and the Code going forward.
Mandatory use of template invitation and contract documentation
Under QPP 2023 it was mandatory for Departments to use template invitation and contract documentation relevant to the category being procured. QPP 2026 also makes this mandatory, rather than strongly recommended, for budget sector agencies, statutory bodies and other public-sector companies.
Responsible agencies must publish streamlined invitation and contract documentation for each procurement category by 31 December 2026. The Department of Housing and Public Works (DHPW) is lead agency for the 'General Goods and Services Category' and 'Building, Construction and Maintenance Category' and is progressively updating its templates, with a number recently updated, including its building templates. The use of the DHPW building templates must be considered in the context of the Building Policy Framework (BPF), which has also been updated and applies to 'all building construction and maintenance projects and programs' for 'Queensland Government departments'.
The Department of Transport and Main Roads is lead agency for the Transport Infrastructure and Services Category, with templates such as the 'Transport Infrastructure Contract' suite. The Department of Customer Services, Open Data and Small and Family Business is lead agency for Information and Communication Technology contracting, using the Queensland Information Technology Contracting (QITC) framework.
Many agencies, including statutory bodies, have developed their own tailored templates and will need to assess whether they need to transition to whole of Government templates, potentially with some customisation. In some cases the nature of the agency's procurement activities and level of customisation required may justify the continued use of bespoke documents, but this should be considered against the policy intention of making it easier to do business with Government, including through consistent documentation. Engagement with the Queensland Government Procurement Committee or the relevant 'Category Council' is recommended.
3. Why it matters
The reforms aim to make procurement more accessible and efficient. By reducing red tape and administrative burdens, the policy will provide clear guidance and support for suppliers to the Queensland Government and improve diversity and inclusion across the supply chain.
For Government agencies, the transition to QPP 2026 provides an opportunity to update and refine their procurement frameworks and seek to achieve value for money, strong governance and planning, ethics and probity and a genuine collaboration with the private sector for the benefit of all Queenslanders.
Looking Forward
The policy took effect from 1 January 2026 but the timeline for full compliance has not yet been publicly confirmed. We expect the Queensland Government to release further guidance and updates as implementation progresses. Suppliers should monitor Queensland Government Procurement resources for the latest information.
For tailored advice on how these changes impact your organisation, or assistance updating procurement documentation, please contact us.
