The CASG Cost Principles apply to all procurements. They are mandatory for all procurements valued at greater than two million Australian dollars (AUD$2m), and guidance for all others, unless exemptions apply. The Commonwealth's discretion, and a reasonableness test, will apply with regard to the use of the Cost Principles for tendered contracts.

The document details the Cost Principles that Defence Capability Acquisition and Sustainment Group (CASG) and industry will utilise as a framework towards contract costs and provides Defence and the CASG's expectations and clarity of what costs may be attributed to (cost-recovered from) the Commonwealth.

The Principles focus on compliance of the accounting framework to the Principles, not the financial accounting system; the Principles operate within the test of reasonableness and are not intended to mandate what costs Industry are able to incur or not incur.

For more information or to provide feedback on the Cost Principles, please send an email to the Defence Financial Investigation Service.