A Bill for an Act to amend the Public Governance, Performance and Accountability Act 2013, and for related purposes
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Public Governance, Performance and Accountability Amendment (Procuring Australian Goods and Services) Act 2016.
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
| Commencement information |
| Column 1 | Column 2 | Column 3 |
| Provisions | Commencement | Date/Details |
| 1. The whole of this Act | The day after this Act receives the Royal Assent. | |
Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Schedules
Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1—Amendments
Public Governance, Performance and Accountability Act 2013
1 Section 6
After:
Part 3‑2 is about planning by, and the accountability of, Commonwealth companies. It requires the directors of a Commonwealth company:
• to prepare a corporate plan and, in the case of a wholly‑owned Commonwealth company, budget estimates for the company; and
• to prepare an annual report for the company.
Insert:
Chapter 3A—Procuring Australian goods and services
Part 3A‑1—Procuring Australian goods and services
Part 3A‑1 has provisions requiring the Commonwealth, corporate Commonwealth entities and wholly‑owned Commonwealth companies to procure Australian goods and services.
2 After Chapter 3
Insert:
Chapter 3A—Procuring Australian goods and services
Part 3A‑1—Procuring Australian goods and services
Division 1—Guide to this Part
99A Guide to this Part
This Part has provisions requiring the Commonwealth, corporate Commonwealth entities and wholly‑owned Commonwealth companies to procure Australian goods and services.
Division 2—Procuring Australian goods and services
99AA Limitation on entering into arrangements to procure goods or services
(1) A person (the procurer) must not enter into an arrangement with another person to procure goods or services if:
(a) the procurer is:
(i) entering into the arrangement on behalf of the Commonwealth; or
(ii) a corporate Commonwealth entity; or
(iii) a wholly‑owned Commonwealth company; and
(b) the goods or services are not Australian; and
(c) the arrangement, the goods or the services are not covered by an exemption under section 99AB or 99AC.
(2) For the purposes of paragraph (1)(b), goods are Australian if:
(a) 75% of the cost of the goods is attributable to:
(i) labour provided by individuals who are residents of Australia; or
(ii) the use of components, ingredients, produce or other goods that have been manufactured or produced wholly in Australia; or
(b) the goods are manufactured or produced wholly by residents of Australia.
(3) For the purposes of paragraph (1)(b), services are Australian if the services are provided by residents of Australia.
(4) In this section:
Australia, when used in a geographical sense, includes the external Territories.
resident of Australia has the same meaning as in the Income Tax Assessment Act 1936.
99AB Public interest exemptions by Finance Minister
(1) Section 99AA does not apply in relation to an arrangement to procure goods or services if the arrangement, or the goods or services, are covered by an exemption under subsection (2).
(2) The Finance Minister may exempt an arrangement, goods, or services, from the operation of section 99AA if the Finance Minister believes that it is in the public interest to do so.
(3) An exemption made under subsection (2) in relation to a particular arrangement, or particular goods or services, is not a legislative instrument.
(4) An exemption made under subsection (2) in relation to a class of arrangements, goods or services is a legislative instrument.
99AC Exemption—Australian goods or services not able to be procured
Section 99AA does not apply in relation to an arrangement to procure goods or services if:
(a) the procurer mentioned in that section has taken all reasonable steps to procure Australian goods or Australian services; and
(b) the Australian goods or Australian services cannot reasonably be procured.
3 At the end of section 105B
Add:
(3) An instrument under subsection (1) applies subject to Chapter 3A (Procuring Australian goods and services).