New South Wales has passed legislation establishing a new framework for considering local jobs, skills and Australian content when awarding major government contracts.
The Local Jobs First Bill 2026 creates a Local Jobs First Commissioner, introduces new procurement requirements for major tenders and establishes a supplier debarment scheme for serious misconduct.
New Weighting for Major Government Tenders
A new Local Procurement Policy will require government agencies to consider factors including local employment, skills, local content and small and medium business participation when evaluating major contracts.
For procurements worth $25 million or more, tenders will generally be required to apply at least a 30 per cent weighting to these factors.
For contracts between $7.5 million and $25 million, agencies will also be covered by the policy but may depart from the requirements where they document and justify the decision.
The NSW Government spends more than $40 billion a year on goods, services and construction, making procurement policy a significant part of the state’s broader industry strategy.
Commissioner to Monitor Compliance
The legislation establishes an independent Local Jobs First Commissioner to monitor how agencies and suppliers meet procurement commitments.
Suppliers working on major contracts may be required to prepare Local Procurement Plans outlining commitments relating to jobs, skills, local content and participation by regional and smaller businesses.
The Commissioner will be able to monitor those commitments and seek information from government agencies where compliance concerns arise.
Apprenticeship Requirements Included
The reforms also establish a Future Skills Guarantee for major construction and infrastructure projects.
Under the planned regulations, at least 20 per cent of the trades workforce on relevant projects worth $7.5 million or more will be required to consist of apprentices.
The framework is intended to link government procurement with training opportunities for apprentices and other workers developing new skills.
Suppliers Could Be Barred for Serious Misconduct
A separate supplier debarment scheme will allow businesses found to have engaged in prescribed serious misconduct to be excluded from NSW Government procurement.
The scheme will be administered through the NSW Procurement Board and follows an integrity recommendation arising from ICAC’s Operation Hector.
The legislation also creates a Local Jobs First Advisory Board involving representatives from business, industry, unions and other sectors.
With the legislation passed, the next stage will involve developing the detailed Local Procurement Policy, regulations and implementation arrangements for the new Commission.
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