Tendering Guide

GUIDE

How Government Tendering Works in Australia

A plain-English guide to finding, understanding and responding to government tenders. Written for tradies and small business owners who haven't tendered before.

A tender is a formal invitation from a government agency (or large organisation) asking businesses to submit a proposal to supply goods or services. The agency publishes a document describing what they need, and businesses submit written responses explaining how they'd deliver the work, what it would cost, and why they're the right choice.

If you've ever quoted on a private job, you already understand the concept — a tender is just the government's version of getting quotes. The difference is that the process is more structured, the documentation is more formal, and there are rules about how submissions are evaluated.

The Australian Government spends over $70 billion a year on procurement. That's roads, buildings, IT systems, cleaning contracts, maintenance, security, landscaping — work across every trade. A lot of that work goes to small businesses and subcontractors, especially under the new procurement rules introduced in November 2025.

There are a few main types you'll see:

Request for Tender (RFT)

The most common. An open competitive process where any qualified business can submit a response. The agency publishes the requirements, you submit your bid, and they evaluate all responses against published criteria.

Request for Quote (RFQ)

Simpler and usually for lower-value work. The agency describes what they need and asks for a price. Less formal than an RFT. Often used for straightforward supply or services.

Expression of Interest (EOI)

A preliminary stage where the agency is checking who's out there before running a full tender. You submit a short overview of your business and capability. If you're shortlisted, you'll be invited to respond to the full tender later.

Approach to Market (ATM)

This is the umbrella term used on AusTender for any published opportunity. An ATM might be an RFT, RFQ, EOI, or other format. Always check the specific documents to understand what type of response is required.

Standing Offer / Panel Arrangement

The government sets up a panel of approved suppliers for a category (e.g. "building maintenance in the ACT"). Once you're on the panel, agencies can come to you directly for quotes without running a full open tender each time. Getting on a panel is competitive but once you're on, you get access to a steady stream of work.

AusTender (tenders.gov.au) — The official Commonwealth (federal) government portal. All federal agencies must publish opportunities valued at $10,000 or above here. Free to register, free to search, free to respond.

State and territory portals

Commercial platforms like VendorPanel (local council tenders) and EstimateOne (construction subcontracting) also publish opportunities. Tendera aggregates these into one feed so you don't have to check each portal individually.

This is free and takes about 10 minutes:

Step 1 — Go to tenders.gov.au and click "Register"

Step 2 — Choose "Supplier Registration"

Step 3 — Verify your ABN (Australian Business Number)

Step 4 — Complete your business profile — trading name, contact details, business description

Step 5 — Set your UNSPSC codes — these are category codes that describe what you supply. AusTender uses them to send you email notifications when matching opportunities are published. Choose codes that match your trade. You can select multiple.

Step 6 — Optionally, add keyword filters to refine your notifications further

Step 7 — Confirm your registration via the email link sent to you (must be done within 14 days)

Once registered, you can download tender documents, lodge responses, and receive automatic notifications when opportunities matching your categories are published.

Important: You must be registered AND logged in to download ATM documents. If you download the documents, you'll automatically be notified of any addenda (updates or changes) to that tender.

When you open a tender on AusTender (or any portal), here's what to look for:

ATM ID — The unique reference number. Use it in all correspondence.

Agency — Who is buying. This tells you which government department or entity is running the procurement.

Category (UNSPSC) — The goods/services classification. Check this matches your trade.

Close date and time — The absolute deadline. Late submissions are rejected. The time is always in the agency's local timezone (usually AEST/AEDT for federal) — check this carefully if you're in a different timezone.

ATM Type — Whether it's an RFT, RFQ, EOI, etc.

Multi-agency access — Whether other agencies can use this contract too.

Documents — You must download these. They contain the full requirements, evaluation criteria, terms and conditions, and response templates. There's usually a main RFT document, a draft contract, and sometimes a response template or spreadsheet.

Addenda — Updates published after the original tender. If you've downloaded the documents, you'll be emailed automatically when an addendum is issued. Always check for addenda before submitting.

This is done through AusTender's online lodgement system:

Step 1 — Log into AusTender with your registered account

Step 2 — Navigate to the ATM you want to respond to

Step 3 — Click the "Lodgement Page" button

Step 4 — Upload your response files (maximum 5 files per lodgement session)

Step 5 — Submit before the closing date and time

Important rules

  • You MUST be logged in as a registered user
  • The lodgement system closes at the exact deadline — there is no grace period
  • If you have more than 5 files, use a compressed (ZIP) file to bundle them
  • Once uploaded, files cannot be deleted — but you can upload additional files in a new lodgement session. All files from the same registered account go into one folder
  • Multiple submissions are allowed while the opportunity is open
  • If you haven't lodged on AusTender before, practice using the DemoATM (available on the AusTender help site) before submitting a real response

If you experience technical issues during lodgement, contact the AusTender Help Desk immediately — technical failures that are AusTender's fault may be accepted as grounds for late submission.

Accepted formats — Most agencies accept PDF, Microsoft Word (.docx), and Excel (.xlsx). Some tenders specify a required format in the ATM documentation. Always check and follow whatever format the tender specifies.

PDF is safest — When in doubt, submit as PDF. It preserves formatting, can't be accidentally edited, and is universally readable. If the tender provides a Word response template, fill it in and save/export as PDF before uploading.

File naming — Name your files clearly. Include your business name and a description. For example: TenderaptyLtd_Methodology.pdf or TenderaptyLtd_PricingSchedule.xlsx. Some tenders specify naming conventions — follow them exactly.

5-file limit — AusTender allows a maximum of 5 files per lodgement session. If your response has more than 5 files, bundle them into a ZIP archive. Agencies can handle ZIP files.

File size — There is a per-file size limit on AusTender. Keep individual files under 50MB. If you have large files (e.g. drawings, photos), compress them or reduce image resolution.

Response templates — Many tenders provide a response template (usually Word or Excel). Use it. Don't create your own format. Evaluators are looking for information in specific places — the template ensures your response is structured the way they expect.

Government evaluators assess tender responses against published evaluation criteria. These criteria are always listed in the ATM documentation. Common criteria include:

Demonstrated capability and experience — Evidence that you've done similar work before. Include specific project examples, contract values, client names (if permitted), and outcomes. "We've completed 12 similar maintenance contracts for local councils in NSW over the past 3 years" is stronger than "We have extensive experience."

Understanding of requirements — Show that you've actually read and understood what they're asking for. Restate the key requirements in your own words and explain how your approach addresses each one.

Methodology and approach — How you plan to deliver the work. Be specific about steps, timelines, quality controls, and risk management.

Key personnel — Who will do the work. Include qualifications, relevant experience, and roles. Government clients want to know the actual people, not just the company name.

Value for money — This is NOT just the lowest price. Agencies evaluate the total value proposition — quality, capability, risk, methodology, and price together. A well-evidenced response at a fair price often beats a cheap bid with no detail.

Compliance — This is pass/fail. If the tender says "must hold current public liability insurance of $20M" and you don't have it, your response may be excluded before it's even evaluated. Read every mandatory requirement carefully.

Before you start tendering, get these ready:

ABN — Australian Business Number. Required for registration and contracting. If you don't have one, register at abr.gov.au (free, takes minutes).

Public liability insurance — Most government tenders require $10M–$20M coverage. Check your current policy and increase it if needed. Some trades require higher limits.

Professional indemnity insurance — Required for professional services (design, consulting, IT). Not always required for trade work, but check each tender.

Workers compensation insurance — Required if you have employees. Must be current and compliant with your state's requirements.

WHS/OHS management plan — A written plan showing how you manage workplace health and safety. Many tenders ask for this. If you don't have one, create one — it doesn't need to be complicated for a small business, but it does need to exist.

Capability statement — A 2–4 page document that summarises your business: who you are, what you do, your experience, key projects, qualifications, insurance details, and contact info. This is your tender "resume." Keep it updated and professional.

Trade licences and qualifications — Relevant to your trade. Electrical licence, plumbing licence, builder's licence, etc. Have copies ready to attach.

References — Two or three recent clients who can vouch for your work. Ask permission before listing them. Include their name, role, organisation, phone number, and email.

Company profile / organisational details — ABN, ACN (if registered company), trading name, registered address, number of employees, years in business.

Tendera's Bid Readiness feature cross-references your profile against each tender's likely requirements and tells you what you have and what you're missing — before you start writing.

The Commonwealth Procurement Rules (CPRs) were updated on 17 November 2025. These are the biggest changes in 20 years, and they directly benefit small Australian businesses:

Higher threshold — The procurement threshold increased from $80,000 to $125,000. This means more contracts now fall below the open tender threshold, and agencies can use simpler sourcing methods — which favours local businesses.

Australian business priority — For non-panel procurements valued between $10,000 and $125,000 (non-construction) or $10,000 and $7.5 million (construction), agencies must invite only Australian businesses in the first instance. This means less competition from overseas suppliers on smaller contracts.

SME priority for panels — For contracts under $125,000 from the MAS Panel, People Panel, or DTA-managed panels, agencies must invite only SMEs (fewer than 200 employees). If you're a small operator, this is directly in your favour.

Ethical conduct matters — Agencies must now consider a supplier's ethical conduct (labour practices, WHS, environmental impact) as part of their value-for-money assessment. Good operators benefit.

Supplier Portal (from July 2026) — A new publicly searchable database where businesses can register and identify themselves as Indigenous-owned, SME, Australian-owned, women-owned, etc. This will make it easier for agencies to find and invite small businesses.

What this means for you: If you're an Australian-owned small business, you now have priority access to around 31,000 contracts per year worth nearly $2 billion. The rules are actively designed to get more work to businesses like yours.

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