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 initiates a tender process, inviting submissions from potential suppliers.

The invitation to offer requires that suppliers complete an Ethical Supplier Threshold declaration. This declaration is designed to ensure suppliers disclose any previous instances of having breached the Threshold.

Threshold breaches include any payments of below award wages to employees, engaging in sham contracting, using unlicensed labour hire or failing to pay the superannuation guarantee.

Where a supplier declares they have breached the Threshold (e.g. a supplier is subject to an undertaking issued by the Fair Work Ombudsman where they are required to correct an underpayment they made to their employees), the procuring agency must investigate further and share any additional information with the Queensland Government Procurement (QGP) Compliance Branch.

The QGP Compliance Branch will provide advice and may further investigate the matter, which can result in the supplier being excluded from that 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.