Queensland Government procurement: Transparency triumphs

The Queensland Government spends close to $25billion per year on procurement. In today’s cost-conscious environment, the processes of procurement and managing ongoing supplier contracts are being subjected to closer scrutiny than ever.

This process can prove daunting not only for public sector employees, but also for government lawyers advising at various stages, from the front end, to litigation. Government lawyers are increasingly involved not just in drafting contracts, but in future-proofing them.

Below, we offer insights and guidance on the Queensland Government modern procurement processes.

Queensland Procurement Policy 2023

The Queensland Procurement Policy 2023 (QPP) offers guidance, along with the ‘Queensland Procurement Strategy 2023 – Jobs, Economy, Legacy, Confidence’, the ‘Buy Queensland’ approach and the relatively new Ethical Supplier Mandate (Mandate) which outlines how the Government will manage instances where suppliers fail to meet their contractual, policy, or legal obligations. The Mandate ensures that businesses supplying to the government uphold their social, economic, and environmental commitments. The Mandate aims to promote ethical and responsible business practices and to remove unethical behaviour from the supply chain. QPP also refers to the Ethical Supplier Threshold, which outlines wage standards expected of suppliers.

Good faith and fair dealing

Engaging in a ‘good faith’ approach may be an implied term of a contract involving a public sector agency. Queensland courts have shown a growing willingness to read good faith obligations into public contracts (Aurizon Network Pty Ltd v Glencore Coal Queensland Pty Ltd & Ors [2019] QSC 163), especially where there is a significant power imbalance. Be careful though – there is no binding decision of the High Court to the effect that a term obliging good faith is to be implied into all contracts or all commercial contracts. Instead, cases such as QNI Resources Pty Ltd & Anor v North Queensland Pipeline No 1 Pty Ltd & Anor [2022] QCA 169 suggest that such terms might arise as a factual circumstance of the contract.

The public sector, in setting the gold standard as the model litigant, should be very clear as to what ‘good faith’ entails in your contract terms, if you choose to make them explicit (e.g., timely communication, timely issue of invoices, genuine effort to resolve disputes).

Ambiguous ‘good faith’ clauses can create exposure if an agency is seen to act arbitrarily, for example by terminating or varying a contract.

Flexible contracts for uncertain environments

COVID-19, climate-related and tariff-based disruptions have shown that rigid contracts are high risk. Public sector agencies are encouraged to:

review mechanisms that allow scheduled contract evaluations and amendments without re-tendering. Given the elapse of time and organisational ‘churn’ that can sometimes occur in government procurement, this is a necessary step
use variation clauses that allow scope, timelines, or deliverables to shift in accordance with any probity requirements
‘Force majeure’ clauses that are specific and reflect real risks (2 examples are supply chain delays and cyberattacks).

Output-based contracts

More contracts are moving toward measuring outputs or outcomes rather than just service inputs (e.g. number of hours spent). This requires clear KPIs and dispute escalation processes that start with internal resolution before going to mediation, arbitration or litigation.

As a significant party to large scale contracts, governments should build in remedy regimes. e.g., ‘step-in rights’ that grant a third party the right to take control of a contractor's operations or obligations if the contractor defaults or faces insolvency. This allows the public sector entity to maintain the flow of goods or services, especially in situations where the project's financial health or completion is at risk.

Preparation in the event ‘things go wrong’

An issue repeatedly seen in practice is that government must retain clear termination for convenience clauses, especially in technology and infrastructure contracts. Exit obligations (e.g., data handover) should be clearly stated to avoid holdover risks or vendor lock-in.

Technology and digital procurement challenges

The public sector's increasing reliance on digital services and automation has created a distinct set of legal risks that lawyers and public sector employees must navigate during procurement.

Data privacy and sovereignty

Government contracts should clearly consider:

data localisation requirements - whether data must stay onshore in Australia or Queensland
clear expression of data ownership and data disposal obligations keeping in mind the governing legislation of the Public Records Act 2002
compliance with the Information Privacy Act 2009 and related confidentiality protections in agency-specific Acts such as the Hospital and Health Boards Act 2011.

AI and emerging technology procurement

AI procurement will necessarily create new risks for the public sector. Bias and possible discrimination must be considered during vendor selection, and even in design of algorithms. Lawyers should build in:

ethical use clauses or references to existing government ethical use policy such Use of generative AI for government and Artificial intelligence governance policy
right to audit the algorithms (given the sensitive proprietary nature of algorithms, this may be difficult). Another difficulty in determining the responsible party for AI contracts is the evolution of AI algorithms, especially where the solution relies on a third-party algorithm, and that algorithm is improved or modified
termination rights for unintended harm. The nature of an AI product may make it difficult to identify an adequate remedy – can you repair or replace an AI system with another? Who is responsible and liable for the breach?
use of the new ISO/IEC 23894:2023 Information technology – Artificial intelligence–Guidance on risk management Standard

Public sector agencies, as part of the procurement process, should also check that tenderers clearly identify whether AI is part of the proposed contracted solution (no matter what that solution is), and if so, how are the risks to be managed?

Software as a Service (SaaS) Contracts

There is a burgeoning interest in acquiring open-source platforms and SaaS models for use in public sector processes. The Queensland public sector is a treasure trove of data which can be used for incredible public benefit.

With this, there is a need to:

clarify the ownership of intellectual property and the scope of any licence/s
address future risks of vendor insolvency, ensuring continuity of service for vital public sector services
clarify exit strategies from the agreement, including data extraction formats and a process for data migration, so the public sector can easily port to a different software solution. This would help eliminate the glut of legacy systems which exist, posing their own data security and cyber attack vulnerabilities.

Key takeaways for decision makers and legal advisers in the public sector

Procurement and contract management need not be thought of as ‘Defence against the Dark Arts’. Transparency always triumphs. Sensible and proactive relationship and agreement management with suppliers means everybody wins – from the public sector to the supplier, to the service recipient and taxpayer.

We suggest the following:

develop a checklist – this is necessary for good practice and record-keeping
get the basics right – including knowing who is properly delegated to enter and vary agreements
undertake continuing education and upskilling on contemporary procurement
act with integrity (especially to avoid/declare/manage conflicts of interest)
refer to the QPP, especially the Ethical Supplier Mandate and Ethical Supplier Threshold
where the issues seem unclear, seek advice both from trusted experts in your organisation and externally where available.
exercise constant vigilance, especially in this era of ballooning costs
manage and monitor supplier performance – often it can be hard to remedy contractual problems to your favour (even with the best lawyers!)
most contracts will have appropriate review and grievance mechanism processes. Utilise those where necessary.

If you would like more information on government procurement in Queensland, please get in touch with a member of our team below.

Authors: Joanne Jary & Cosmo Cater

Media

Queensland government reveals full list of new offences under 'adult crime, adult time' laws (1 April 2025)
The Queensland government is expanding its “adult crime, adult time” policy by adding 20 more additional offences, including rape, attempted murder, arson, and drug trafficking, where juveniles can be tried as adults. Premier David Crisafulli emphasised the focus on victim rights, while critics, including the Youth Advocacy Centre, argue that harsher penalties won't deter youth crime. The reforms follow public outrage over gaps in the initial laws, where a 13 year old boy who stabbed a supermarket worker would not be tried as an adult as attempted murder did not come under ‘adult time, adult crime’. The new offences are now before a parliamentary committee for review before debate. (01 April 2025). Government Media Statement.

Queensland government to extend police powers under Jack's Law to all public places (2 April 2025)
Queensland police could soon be allowed to search people for weapons without a warrant in all public places under expanded and permanent ‘wanding powers’, known as ‘Jack’s Law’. The new bill, introduced by Police Minister Dan Purdie, would remove the trial’s sunset clause and simplify procedures for police officers. Supporters, including Jack Beasley’s family, say the law saves lives, while critics like the Queensland Council of Civil Liberties warn it threatens fundamental rights. The proposed changes are now before a parliamentary committee for review. (2 April 2025). Government Media Statement.

Privacy Protections Welcomed (2 April 2025)
The Queensland Law Society has welcomed the State Government’s move to permanently stop the release of personal information for private car park enforcement. The government announced it will legislate to address community concerns over unfair fines and misuse of personal data. QLS Privacy Committee chair Anna Sharpe praised the commitment to protecting privacy, emphasising that personal information should only be used for its intended purposes. The current pause on information access will remain until the new laws are implemented, with the QLS planning to engage in the legislative review process.

Queensland police to be given powers to issue on-the-spot orders to domestic violence perpetrators (4 April 2025)
Queensland police will soon be able to issue 12-month domestic violence protection orders on the spot without needing court approval, under new reforms introduced by Police Minister Dan Purdie. The changes aim to speed up protection for vulnerable victims and ease pressure on police resources. Domestic and Family Violence Minister Amanda Camm said the reforms are part of a broader agenda to improve victim safety and hold perpetrators accountable, amid rising domestic violence rates. The proposed laws are part of the government's first tranche of domestic violence reforms. (4 April 2025).

Government Media Statement dated 4 April 2025.

Queensland government announces review of greenhouse gas emission reduction targets (8 April 2025)
The Queensland government has tasked the Queensland Productivity Commission with reviewing the state’s legislated greenhouse gas emission reduction targets. Treasurer and Energy Minister David Janetzki reaffirmed the state's net zero by 2050 commitment but said a full emissions roadmap will be released by the end of the year. The government will also focus on boosting private investment in renewables while expanding gas as a critical backup energy source. The state’s hydrogen division will be renamed Gas and Sustainable Fuels and moved to Queensland Treasury.

Publications

Managing Queensland’s debt and investments 2024

This report examines how the Queensland Government manages its debt and investments, including the associated risks.

Skills shortage threatens to stall Queensland’s construction future – Master Builders Queensland

Queensland building approvals have dropped sharply across most regions, with only Townsville showing growth, according to the latest ABS data. Despite a slight year-on-year increase, approvals remain well below the state’s annual target of 50,000 new homes. Master Builders Queensland warns that a critical construction skills shortage is threatening progress, with an estimated shortfall of 50,000 workers by 2026–27. The sector is calling for urgent government action to boost apprenticeships, support small businesses, attract women and skilled migrants, and address workforce gaps ahead of major infrastructure and Olympics-related projects.

Queensland Government Gazettes

Queensland Government gazettes containing legal notices, such as legislative changes and appointments to permanent government positions for April 2025. See gazette index Volume 398 (2025) for a list of affected legislation.

Queensland Government Media Statements

WorkCover premium freeze good news for Queensland

The Crisafulli Government has endorsed a freeze on WorkCover Queensland premiums for 2025–26, keeping the average rate at $1.343 per $100 of wages. This move provides financial certainty for businesses while maintaining strong support for injured workers. Deputy Premier Jarrod Bleijie said the decision reflects WorkCover’s solid financial position under new leadership. WorkCover supports over 74,000 injured Queensland workers annually and remains one of the most affordable schemes in Australia. Employers are also encouraged to improve safety practices and take advantage of incentives to reduce their premiums.

A Fresh Start for Queensland: Residential Activation Fund unlocks new homes

Applications are now open for Queensland’s $2 billion Residential Activation Fund, aimed at fast-tracking housing infrastructure to address the state’s housing crisis. The Crisafulli Government will prioritise “shovel-ready” projects in round one, focusing on critical infrastructure like water, roads, and power for new housing developments. Half the fund is reserved for regional Queensland, supporting the goal of one million new homes by 2044. Premier David Crisafulli and Deputy Premier Jarrod Bleijie said the fund is a key part of removing planning delays and boosting home ownership across the state.

Crisafulli Government saves CopperString

The Crisafulli Government has announced plans to rescue the CopperString energy project after revealing the true cost has ballooned to nearly $14 billion, $12 billion more than initially reported by the former Labor Government. Treasurer and Energy Minister David Janetzki said Queensland Investment Corporation (QIC) will now oversee delivery, attract private investment, and prioritise early works on the Eastern Link between Hughenden and Townsville. Construction of the Hughenden Hub will begin later this year, with a full review of the Western Link also underway to maximise economic value for Queenslanders.

Office of the Information Commissioner

New workbook to help agencies prepare for Information Privacy and Other Legislation Amendment Act implementation. (1 April 2025)

Queensland public sector agencies are set to benefit from a new resource titled Prepare for IPOLA workbook, which is designed to document activities, responsibilities and status of work as agencies prepare for the IPOLA Act reforms. [Read more and access the workbook]

Information commissioners and ombudsmen call on public sector leaders to be stewards of government information. (11 April 2025)

Information Commissioners and Ombudsmen from around Australia came together in Brisbane to discuss risks, challenges and opportunities affecting the public’s right of access to government-held information. [read more]

Queensland Resources Council

Report reveals confidence decline among Queensland’s resources sector (22 April 2025)

The Queensland Resources Council’s latest State of the Sector report reveals declining industry confidence, with nearly half of CEOs less optimistic about the year ahead due to rising costs, regulatory uncertainty, and coal royalties. While long-term demand for resources remains strong, immediate challenges include delayed project approvals and high operational expenses. The QRC has welcomed the new government’s commitment to streamlined approvals and calls for fairer tax and royalty frameworks. Encouragingly, 75% of companies plan to invest in emissions reduction, highlighting the sector’s role in supporting a global energy transition.

Property Council

Property industry confidence boost, but housing remains key for next government: survey (10 April 2025)

Confidence in Australia’s property sector has risen, with the latest Procore/Property Council Survey showing optimism ahead of the federal election. The industry’s Confidence Index jumped to 125, while expectations for housing construction and price growth also increased. However, housing supply and affordability remain the top priority, with 40% of respondents calling for urgent government action. Property Council CEO Mike Zorbas urged streamlined investment pathways and better coordination between federal, state and local governments. Confidence is also returning to the office sector, with growth expectations positive for the first time since 2019.

Practice

Queensland Courts

eLodgements launching for civil claims in Brisbane Supreme Court
As part of that commitment, from Monday, 30 June 2025, the Queensland Courts and Tribunals Online Services Portal (OSP) will be expanded to include eLodgements for civil claims in the Brisbane Supreme Court.

Federal Court of Australia

Artificial intelligence use in the Federal Court of Australia
The Federal Court of Australia has issued a statement outlining its intention to develop a Guideline or Practice Note on the use of Generative Artificial Intelligence in court proceedings. While still under consultation, the Court emphasised the importance of balancing judicial integrity with responsible use of emerging technologies. Legal practitioners and self-represented litigants are expected to use AI tools responsibly and may be required to disclose such use if requested by the Court. Submissions from the legal profession and public are invited by 13 June 2025 as part of the Court’s ongoing consultation process.

QLS Proctor

Federal Court judges considering AI note
Federal Court of Australia Judges have been discussing the development of guidelines, or a practice note about the use of generative artificial intelligence by practitioners and court users.

Cases

Kitoko v Registrar, Registry of New South Wales, Federal Court of Australia [2025] FCAFC 41

ADMINISTRATIVE LAW – procedural fairness – primary judge ordered matter to be determined without an oral hearing pursuant to s 20A of the Federal Court of Australia Act 1976 (Cth) – where no issues of fact to be determined – where issue already decided authoritatively – whether applicant denied the opportunity to present his case.

Waraich v Minister for Immigration, Citizenship and Multicultural Affairs [2025] FCA 305

ADMINISTRATIVE LAW – judicial review of decision of Administrative Appeals Tribunal to affirm revocation of applicant’s Australian citizenship under s 34(2) of the Australian Citizenship Act 2007 (Cth) – where applicant failed to disclose previous identity in visa applications and citizenship application – where applicant was convicted of offences relating to making false or misleading statements in citizenship application and migration-related fraud – whether Tribunal misconstrued test under s 34(2)(c) of the Act whether it was contrary to public interest for applicant to remain an Australian citizen – whether Tribunal impermissibly exercised the power under s 34(2) of the Act for the purpose of deterrence – whether Tribunal failed to consider evidence and submissions regarding the possible cancellation of applicant’s ex-citizen visa and his removal from Australia – Held: Tribunal misconstrued s 34(2)(c) and asked itself wrong question by limiting its consideration to applicant’s past offending conduct – application allowed.

Van Dorssen & Ors v Queensland Building and Construction Commission (No. 2) [2025] QCAT 140

ADMINISTRATIVE LAW – ADMINISTRATIVE TRIBUNALS – QUEENSLAND CIVIL AND ADMINISTRATIVE TRIBUNAL – COSTS – application to review a decision disallowing a previously approved claim for payment under the statutory insurance scheme –where s 24AA Acts Interpretation Act 1954 (Qld) had no application there being a sufficient contrary intention against that – where the applicants had a strong case – where the dispute was complex – where other parties engaged legal representatives before the applicants responded by engaging their own legal representatives – where the interests of justice required an order for payment of the applicants’ costs.

Jele Chemists Pty Ltd v Australian Community Pharmacy Authority [2025] FCAFC 54

ADMINISTRATIVE LAW – proper construction of s 10(3)(c) of National Health (Australian Community Pharmacy Authority Rules) Determination 2018 (Cth) (National Health Rules) – whether development approval under Planning Act 2016 (Qld) is required to be in effect for Australian Community Pharmacy Authority (ACPA) to make recommendation to Secretary of Department of Health and Aged Care (Secretary) – whether ACPA required to engage with local government and State or Territory planning laws – whether institution of appeal of development approval means premises unable to be used for operation of pharmacy “at all relevant times” – whether recommendation of ACPA only possible in relation to physical premises – whether “proposed premises” means physical premises – whether measurement between two premises requires existence of two physical premises – s 8 and sch 1, pt 2, item 130 of National Health Rules – appeal dismissed.

Harris v Military Rehabilitation and Compensation Commission [2025] FCA 381

ADMINISTRATIVE LAW – application for review under s 44 of the Administrative Appeals Tribunal Act 1975 (Cth) – application for review under ss 5 and 6 of the Administrative Decisions (Judicial Review Act 1977 (Cth) – application under s 39B of the Judiciary Act 1903 (Cth) – whether Administrative Appeals Tribunal erred in finding s 181(1) of the Military Compensation and Rehabilitation Act 2004 (Cth) founds a discretion to deem a person with actual earnings different from income actually earned –appeal dismissed – no error – s 44 appeal dismissed as not competent – Tribunal decision not final in nature.

Knowles v Australian Information Commissioner [2025] FedCFamC2G 571

ADMINISTRATIVE LAW – application for judicial review of separate decisions made by the Australian Information Commissioner under Part V, Division 1 of the Privacy Act 1988 (Cth) – where the applicant separately complained to the Commissioner under sections 36(1) and 36(2) of the Act in relation to the Department of Veterans’ Affairs alleged breaches of the Australian Privacy Principles – where the delegate decided not to investigate each complaint under sections 41(1)(d) and 41(1)(da) of the Act respectively– where the applicant alleges that the delegate failed to reach the state of satisfaction required by section 41 in exercising the discretion in each case – consideration of whether the respondent acted reasonably in the exercise of that discretion – no jurisdictional error established – applications each dismissed.