The main legislation directly affecting procurement for a wide range of acquiring entities is the Financial Management and Accountability Act 1997 (FMA Act) and the Commonwealth Authorities and Companies Act 1997 (CAC Act).

FMA Act

A key provision of the FMA Act is section 44 which requires Chief Executives to promote the efficient, effective and ethical use of the resources for which they are responsible. The FMA Act also authorises the making of FMA Regulations. The Commonwealth Procurement Guidelines (CPGs) are issued by the Finance Minister under the FMA Regulation 7.

CAC Act

Section 47A of the CAC Act enables the Finance Minister to issue directions to the directors of CAC Act entities on matters related to procurement. The CAC Act also authorises the making of regulations for entities governed by the CAC Act. CAC Regulation 9 lists those CAC entitles (relevant CAC Act bodies) that are subject to directions issued by the Finance Minister under the CAC Act. The Finance Minister's (CAC Act Procurement) Directions 2004 (The Directions) requires directors of a relevant CAC Act body to ensure that its officials apply Divisions 1 and 2 of the Commonwealth Procurement Guidelines (CPGs) for a covered procurement.2 The Directions also advise CAC Act entities on how to interpret the CPGs in the context of the CAC Act.

A summary of relevant legislation, policy requirements and guidance is outlined at Appendix 1.1.

A key provision of the FMA Act is section 44 which requires Chief Executives to promote the efficient, effective and ethical use of the resources for which they are responsible.