From 1 April 2025, the Victorian State Government will implement updates to its Supplier Code of Conduct, introducing stricter compliance requirements for businesses. The key change shifts the Code from aspirational guidelines to minimum standards that suppliers must meet to engage in business with the Victorian Government.

This update also introduces more prescriptive language, ensuring that expectations are now framed as clear requirements. In this blog, we outline the key changes and additional requirements introduced by the updated Code.

First introduced on 1 July 2017, the Supplier Code of Conduct (the Code) was established to align supplier practices with the values of the Victorian Government, promoting ethical, sustainable, and socially responsible procurement across the supply of goods, services, and construction.

The current Code outlines expectations that suppliers “will aspire to meet when conducting business with the State.” The State aims to “work with its suppliers to meet and exceed minimum expectations as outlined in the Code and continuously strive to improve the standard of its business practices.”

Every organisation tendering to provide works or services to Victorian government departments and agencies is required to commit to comply with the Code each time they submit a bid, regardless of whether they are successful.

The Code continues to apply to Suppliers providing goods or services, including construction works and services, to the Victorian Government.

Review of the Key Changes

Confidentiality

Suppliers are required to implement robust systems to protect confidential information. This update highlights the importance of safeguarding information throughout the contract lifecycle.

Conflict of Interest

Under the updated Code, suppliers must:

avoid financial, business or other relationships which may compromise or have the appearance of compromising the performance of their duties.

The reference to the “appearance of compromising” the performance of duties is new, reflecting the State’s commitment to maintaining public trust.

Gifts, Benefits and Hospitality

Under the current Code, suppliers are expected to refrain from offering gifts, and limit hospitality to token gestures. The updated Code could be seen as allowing greater flexibility, prohibiting gifts or benefits when they could reasonably be perceived as influencing decisions or compromising integrity but arguably permitting gifts in other circumstances.

Consequences of Non-Compliance and Breaches of the Code

The revised Code introduces:

• requirements for suppliers to report breaches of the Code, whether the Code has been breached by their own personnel or by VPS personnel
• some clear statements about the consequences for suppliers of non-compliance with the Code which can include:

– investigation for breaches of the Code;

– a requirement to implement remedial action to rectify breaches of the Code;

– sharing of information relating to a Supplier’s ethical conduct across purchasing departments and agencies;

– suspension or removal from pre-qualification schemes and panel arrangements (subject to the terms of the scheme or arrangement);

– termination of contracts (subject to the terms of the contract); or

– referral of matters for civil remedy or criminal investigation.

However, the revised Code also indicates that the State recognises the importance of working with Suppliers to provide them with an opportunity for improvement if appropriate.

Health, Safety and Security

There are a couple of notable changes in this area.

• The title of the section has changed from “Health and safety” to “Health, safety and security”.
• In addition to complying with workplace health and safety laws, suppliers must “promptly manage any threat to health or safety”.
• The updated Code requires suppliers to provide culturally safe and secure environments for all personnel. This expanded focus promotes inclusivity and a proactive approach to fostering culturally safe working conditions. Although the Code itself does not provide a definition of cultural safety, other Victorian Government publications do provide definitions. For example:

– Department of Health: Cultural safety is about creating an environment that is safe for Aboriginal and Torres Strait Islander people. This means there is no assault, challenge or denial of their identity and experience.

–   Department of Families, Fairness and Housing has an Aboriginal and Torres Strait Islander cultural safety framework: Cultural safety means creating environments where people feel safe – where there’s no challenge to their identity, and where their needs can be met.

– Victorian Public Sector Commission: Cultural safety is an environment which is safe for Aboriginal and/or Torres Strait Islander people, where there is no assault, challenge or denial of their identity and experience. Cultural safety is about individuals, organisations and systems being aware of the impact of their own culture and cultural values on Aboriginal and/or Torres Strait Islander people, while creating and maintaining an environment where all people are treated in a culturally respectful manner.

Suppliers are expected to familiarise themselves with the revised Code and ensure compliance by the 1 April 2025 implementation date.

Conclusion

The updated Supplier Code of Conduct strengthens compliance by shifting from aspirational guidelines to enforceable requirements. It introduces clearer obligations for suppliers, including cultural safety and security, reporting breaches of the Code, and avoiding the appearance of compromise. The revised Code also formalises consequences for non-compliance while recognising the importance of collaboration to support continuous improvement. Suppliers will continue to be required to demonstrate their commitment to ethical and sustainable procurement when tendering to provide goods, services, and works to Victorian government departments and agencies.

For further details, please review the full 2025 Code.

Resources

• Supplier Code of Conduct: 2017 (vic.gov.au)
• Supplier Code of Conduct: Transition (vic.gov.au)
• Supplier Code of Conduct: 1 April 2025 (vic.gov.au)

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A participant in the UN Global Compact, CourtHeath seeks to raise awareness about the sustainable development goals and the principles of the Global Compact with business and government organisations in Victoria.

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