The government has released a consultation paper on the shadow economy Procurement Connected Policy (PCP).
As part of the 2018–19 Budget and in response to the Black Economy Taskforce’s Final Report, the government announced a range of measures to tackle the shadow economy including a commitment that, from 1 July 2019, government procurement processes will exclude businesses that do not have a satisfactory tax record.
The Shadow Economy Procurement Connected Policy (PCP) (formerly the “Black Economy” PCP) commenced on 1 July 2019 and applies to new approaches to market on or after 1 July 2019, for procurements valued over $4 million (including GST) for all goods and/or services, including for construction services. The PCP applies to Commonwealth Government procurements that are undertaken through open tenders and that are subject to the Commonwealth Procurement Rules.
Under the Commonwealth Grants and Procurement Connected Policies (RMG 415) guide, policy-owning entities of approved PCPs are required to conduct annual reviews of their policy’s effectiveness in achieving its stated purpose and outcome. This consultation and review process is intended to fulfil this requirement.
In addition, this review provides an opportunity to examine and resolve some of the issues and suggestions for improvement that have been made by various stakeholders during the operation of the Shadow Economy PCP. Participants in this consultation are welcome to raise any other related issues or suggestions that are not covered by this consultation paper.
The closing date for submissions is 23 September 2022.
Source: Shadow Economy Procurement Connected Policy, Treasury website, 12 August 2022, accessed 15 August 2022.
