Aussie companies get leg up on contract queue-jumping
Australian businesses will take the first bite of the cherry as they bid for lucrative government contracts worth nearly $100 billion annually.
Finance Minister Katy Gallagher said the value of contracts offered exclusively to local companies would be increased for the first time in more than two decades.
For non-construction contracts, the Australia-only tender threshold will be increased from $80,000 to $125,000 from 17 November.
The construction contract threshold will remain at $7.5 million.
“This is a major change in the way government does business,” Senator Gallagher said Wednesday.
“This is about supporting Australia’s capacity and making sure taxpayer dollars support Australian jobs.”
More than 83,000 contracts worth $99.58 billion have been published in the government’s tender database in 2023/24. finance department says.
To be invited to tender under the new threshold, a company must be registered as an Australian business and have its principal place of business on Australian shores.
It must also be at least 50 per cent locally owned or primarily traded on the ASX and headquartered in Australia for tax purposes.
The central database that allows businesses to advertise their services for government contracts will also be updated; suppliers will be able to control what information is shared, giving them the best chance of making money from the government.
Starting in July, any business, whether First Nations-owned or a small and medium-sized business, will be able to sign up for tenders and promote features that will help them win contracts.
Women-owned businesses will be encouraged to gain greater spotlight with a new publicly searchable register for women-owned businesses bidding on government contracts.
The government will start reporting how many contracts have been awarded to women-led companies from 2026/27.
“This is about ensuring more of the Commonwealth’s purchasing power flows directly to Australian businesses, creating local jobs and supporting our economy,” Senator Gallagher said.
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