Ethical Supplier Threshold for suppliers

The Queensland Government’s new Queensland Procurement Policy 2026 will take effect on 1 January 2026.

The current policy, including the Ethical Supplier Threshold, will remain in place until 31 December 2025.

The Ethical Supplier Mandate will also transition to the new Procurement Assurance Model on 1 January 2026.

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.

The Queensland Government has 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:

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 Assurance Branch (PAB).

The PAB will provide advice and may further investigate the matter, which can result in the supplier being excluded from that tender process.

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