There are two broad types of confidentiality clauses used in contracts: general and specific.

General confidentiality clauses either restate legislative obligations for confidentiality (such as under the Privacy Act 1988 or a secrecy provision) or set out a general understanding between the acquiring entity and the contractor as to how they will deal with confidential information when performing the contract.

Specific confidentiality clauses protect the confidentiality of:

•  all or part of the contract itself (for example where the contract needs to specify information that an agency has determined is confidential such as profit margin information);

•  specific information obtained or generated in performing the contract (for example to protect commercial information such as suppliers' confidential intellectual property that an entity had determined is confidential); and

•  Australian Government material (for example, a confidential report to be prepared dealing with sensitive public issues that may be available through FOI provisions, but should not be made public by a contractor).

Irrespective of the terms of the contract, disclosure of a contractor's confidential information may be necessary in some cases, for example to a parliamentary committee.

Confidential information should be managed in accordance with any relevant legislation and polices60 and the confidentiality provisions in the contract. Irrespective of the terms of the contract, disclosure of a contractor's confidential information may be necessary in some cases, for example to a parliamentary committee.

A guide on reporting confidentiality requirements is available on the Department of Finance and Deregulation website.