Not-for-profit policy guide

Exemption 16 of the Commonwealth Procurement Rules and not-for-profit organisations

Commonwealth entities that are subject to the Commonwealth Procurement Rules (CPR), may use Exemption 16 of these rules to directly source goods and services from businesses that are 50% or more Indigenous owned. This includes not-for-profit businesses.

These businesses must also meet the definition of a small and medium size enterprise (SME). Under the IPP, a SME is defined as an organisation with less than 200 employees.

Not-for-profit Indigenous Business Direct registration

The National Indigenous Australians Agency funds Supply Nation to maintain a free public register of Indigenous businesses at Supply Nation. To register on Indigenous Business Direct, not-for-profits must meet certain requirements including:

• Holding an approved and current Australian Business Number (ABN) and trading as a business with products or services it can sell business to business (B2B).
• Generating its revenue from the provision of goods or services as opposed to grants/royalties.
• Demonstrating through the organisation’s constitution, that its main charitable objective benefits Aboriginal and Torres Strait Islander people and/or communities.

Businesses awarded Commonwealth contracts under Exemption 16 of the CPR do not have to be on Indigenous Business Direct but the web-based directory is used by Commonwealth procurement officers and its Tier 1 suppliers to search for businesses as part of complying with the Australian Government’s Indigenous Procurement Policy.

It is free for any Indigenous business to register on Indigenous Business Direct.