WA Introduces First Debarment Regime for Safety Breaches

WA businesses that breach workplace safety, workers’ compensation, employment, or environmental laws can now be banned from tendering for government projects, or have current contracts cancelled, under new procurement reforms introduced by the state government.

The new regulations, which will commence on 1 January 2022, represent Australia’s first debarment regime and aim to improve business practices and enhance integrity in procurement.

The debarment regime is designed to ensure:

• suppliers can operate on a level playing field and do not need to adjust their own business practices to compete with competitors who are engaging in corruption;
• State Government agencies can act with increased confidence in working with suppliers who are not debarred; and
• public funds are protected by removing potential losses stemming from criminal activity by suppliers.

Industrial Relations Minister Stephen Dawson said the establishment of the debarment regime reflects the Government’s commitment to good corporate responsibility and helps ensure workers are protected.

“The message is really clear; if you are convicted of fraud, bribery or corruption, you will not be doing business with the WA Government.”

There will be three categories of debarment conduct with the most serious conduct leading to suppliers being debarred for up to five years.

The regime will apply to suppliers who supply and subcontract to supply goods, services, community services and works to the Western Australian Government. It also applies to suppliers and subcontractors who propose to supply to the State.