Does the tendering threshold of $150,000 include or exclude GST?
Advice to LGP is that the $150,000 is inclusive of GST. Will the $150,000 tendering threshold apply if you are planning to enter a contract for several years covering intermittent purchases made on an as required basis with each purchase having a value less than $150,000? If the total expenditure during the contract period is expected to exceed the $150,000 limit, you should run a tender process prior to establishing the contract. If you are not committed to purchase from the one party over the coming period and you are obtaining fresh offers from the market at the time of each purchase, provided the purchase price remains below the $150,000 limit, then a tender would not be necessary. Buyers should be cautious to avoid ‘order splitting’ and other methods to deliberately avoid the tender process. Seek legal input if in doubt.
