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https://www.finance.gov.au/blog/2016/01/02/whats-the-difference-between-engaging-contractors-and-consultants/

The Commonwealth Procurement Rules (CPRs) apply a little differently when undertaking a procurement for a consultant compared with arranging a contract for labour hire. With that in mind, I thought it might be useful to provide some information on how to categorise these differing arrangements. 

Generally, an open tender must be undertaken when a procurement is valued at or above the relevant procurement threshold (usually $80,000). In certain circumstances, entities may instead conduct a limited tender, noting value for money still needs to be achieved. These circumstances are outlined in conditions for limited tender here (paragraph 10.3 of the CPRs) and the Appendix A exemptions to the CPRs here. Exemption 15 provides that one such circumstance is in relation to entering a contract for labour hire. The CPRs define a contract for labour hire to be:

a contract under which a relevant entity engages an individual to provide labour, when the individual is engaged either directly or through a firm which primarily exists to provide the services of only⁽¹⁾ that individual. This includes the appointment of an eminent individual to a special role by an Accountable Authority, or the appointment of a person or persons by an Accountable Authority to a governance committee (for example, an audit committee, ethics committee or steering committee), but does not include the engagement of consultants.

Importantly, this exemption does not apply to contracting with an intermediary, for example, a personnel firm, for the provision of an individual to supply labour (other than where that intermediary is a firm which primarily exists to provide the services of only that specific individual). The procurement of the services of intermediaries such as personnel firms are subject to the Division 2 – Additional rules for procurements at or above the relevant procurement threshold.