New to tenders?

1. What is a tender?
2. Why are there more government than private tenders?
3. Can anyone respond to a tender?
4. Do you need a business number to tender (ABN/NZBN)?
5. Do you have to be registered for GST to respond to a tender?
6. Do you have to be a company to respond to a tender?
7. Do you have to be an Australian/New Zealand company to respond to a tender?
8. Do you have to have insurance to respond to a tender? 
9. Workers Compensation Insurance? Do you need it?
10. Never tendered before?
11. Need a little help?

What is a tender?

A tender is a formal offer to perform work in return for payment. Payment may be in the form of a fixed price or via a schedule of rates. Work may include the supply of goods or services or both. To win a tender, you should understand the buyer's process and expectations. Read more here

Why are there more government than private tenders?

The Commonwealth Government (Australia) and the New Zealand Government have procurement rules that govern how their government entities buy goods and services. These rules support open market engagement, leading to better outcomes for agencies, suppliers, and taxpayers.

A key focus of the rules is open competition, giving all businesses the chance to participate and enough time to respond to opportunities appropriately. The rules also help to align procurement practice with international best practice, encourage more strategic procurement approaches, foster competition and innovation, and promote broader environmental, social, cultural, and economic outcomes.

Private companies are not obligated to follow these same rules and can choose whether to go out to public tender or not.

Can anyone respond to a tender?

Yes. If a tender is advertised as an open tender, any business that considers itself able to meet the requirements and eligibility criteria may respond. Note that some tenders may still specify eligibility criteria such as industry licences, certifications, or minimum experience requirements.

Do you need a business number to tender (ABN/NZBN)?

Although businesses can operate without a business number, most government tenders require an ABN or NZBN as part of the response process. We strongly recommend obtaining one before responding to tenders. 

Do you have to be registered for GST to respond to a tender?

Under taxation legislation, your business must register for GST if your expected annual turnover is $75,000 or more in Australia, or $60,000 or more in New Zealand. However, government Issuers do buy from micro and small businesses that are not registered for GST because they fall below the required registration threshold. Please note that these thresholds are subject to change and we recommend verifying the current figures with the Australian Taxation Office (ATO) or Inland Revenue (IR) in New Zealand.

Do you have to be a company to respond to a tender?

No. Sole traders can also respond to tenders, provided they can deliver the Issuer's scope of work and meet the specified eligibility criteria.

Do you have to be an Australian/New Zealand company to respond to a tender?

This depends on the individual tender. Some tenders, particularly government ones, may require suppliers to be based in Australia or New Zealand. We recommend reading through the tender documents carefully to check the eligibility criteria before responding.

Do you need insurance to respond to a tender? 

Most tenders specify minimum insurance requirements. The type and value of insurance required will vary depending on the value of the procurement and the Issuer's risk assessment. As a business owner, it is your decision whether to hold insurance and what level of cover is appropriate for your business. However, having the right insurances in place can make your business more competitive and demonstrate that you are a low risk supplier.

Common insurance types required by Issuers include public liability insurance, product liability insurance, professional indemnity insurance, and general business insurance.

 

Workers Compensation Insurance? Do you need it?

For businesses with employees, workers compensation insurance is compulsory by law in all states and territories of Australia. Most tenders require suppliers to comply with Australian laws, including maintaining the necessary workers compensation insurance. Issuers may also request evidence that your workers compensation insurance is current as part of the tender process.

Please note that the rules around workers compensation vary by state and territory, and may differ for sole traders or businesses without employees. We recommend seeking independent legal or insurance advice for your specific situation.

Never tendered before?

Want to know more about the tendering process? Check it out here.

There are several other documents about tendering that you can access here.

Need a little help?

Just email us at support@australiantenders.com.au or call our friendly Australian support team on 1800 934 117.