New procurement laws put local jobs and industry capability in focus

The NSW Government is introducing new procurement requirements designed to give Australian businesses and workers greater consideration when competing for government contracts, as major infrastructure projects create opportunities for suppliers across the state.

The Local Jobs First Bill 2026 passed both houses of NSW Parliament on 13 October, establishing the legislative framework for reforms to the government's approximately $40 billion annual procurement expenditure.

The changes are intended to increase the use of Australian-made goods and services, support local employment and improve opportunities for small and medium-sized businesses.

The legislation also provides for new workforce training requirements and oversight of government procurement practices.

Greater consideration for Australian suppliers

Under the proposed Local Procurement Policy, government tenders valued at $25 million or more will be subject to a minimum 30 per cent weighting for local procurement objectives, including Australian content, employment and small business participation. For contracts valued between $7.5 million and $25 million, agencies will be required to apply the policy or explain why they have not.

These objectives include Australian content, local employment and skills development, and participation by small and medium-sized businesses.

The legislation defines local suppliers and goods to include those from NSW and other Australian states and territories, rather than restricting eligibility to NSW businesses.

The reforms also provide for Local Procurement Plans on major contracts, setting out commitments to local employment, Australian content and supplier participation.

A Future Skills Guarantee will introduce training requirements on government construction and infrastructure projects, including a proposed minimum apprentice participation rate of 20 per cent of the trades workforce on applicable projects valued at $7.5 million or more.

The legislation establishes a Local Jobs First Commissioner to oversee implementation and monitor compliance, supported by an advisory board. A supplier debarment scheme will also allow businesses involved in serious misconduct to be excluded from government procurement.

The Bill was awaiting assent following its passage through Parliament. The detailed procurement policy and regulations are still to be implemented, meaning the new requirements should not be treated as already applying to current tenders.

Renewable Energy Zones creating opportunities for regional suppliers

The procurement reforms come as businesses across regional NSW prepare to participate in the construction and operation of renewable energy and transmission infrastructure.

Although procurement conducted under the Electricity Infrastructure Investment Act 2020 is exempt from the new Local Jobs First requirements, projects delivered under the NSW Electricity Infrastructure Roadmap already operate under separate local content requirements.

EnergyCo is working with project developers and delivery partners to encourage the use of local suppliers across renewable energy generation, storage and transmission projects.

The opportunities extend beyond electrical engineering and specialist energy equipment to include civil construction, earthworks, fencing, transport, equipment supply, installation and maintenance.

To help businesses identify available work, EnergyCo has partnered with the Industry Capability Network (ICN) to provide access to project opportunities through the free ICN Gateway.

The platform allows businesses to register their capabilities and receive information about work packages advertised by project proponents.

EnergyCo and ICN have also developed renewable energy capability directories covering manufacturers, equipment suppliers and service providers working across the sector.

Business briefings planned for Mudgee and Dubbo

Regional businesses interested in participating in the Central-West Orana Renewable Energy Zone will have an opportunity to learn more about project procurement requirements at two upcoming Business Infrastructure Briefing Series events.

The briefings are scheduled for Mudgee on Tuesday 1 December 2026 and Dubbo on Wednesday 2 December 2026.

Organised through the NSW Government's Invest Regional NSW program, the sessions will help small and medium-sized businesses understand the scale of infrastructure investment in the region, identify potential contracting opportunities and learn about the administrative requirements for working on major projects.

The Central-West Orana business opportunities webpage also provides procurement information, project contacts and advice on preparing competitive tenders.

Businesses are encouraged to demonstrate relevant experience, financial capacity and compliance with project requirements, including workplace health and safety and quality management.

Contracts available through Central-West Orana projects

The Central-West Orana REZ is already generating procurement opportunities through its transmission network and associated renewable energy developments.

The transmission project is being delivered through network operator ACEREZ, which advertises work packages through ICN Gateway.

These packages cover activities associated with construction and, as the project progresses, ongoing operations.

The Invest Regional NSW webpage identifies the Central-West Orana Transmission Project and Port to Renewable Energy Zones road upgrades among the projects offering procurement opportunities.

Businesses can also use the government's project directory to identify renewable energy developments seeking suppliers and obtain contact details for procurement representatives.

EnergyCo's local business supply opportunities webpage provides access to the ICN registration platform and industry capability directories.

The separate procurement arrangements applying to REZ projects mean that the new Local Jobs First tender weighting will not automatically apply to contracts awarded under the Electricity Infrastructure Roadmap.

However, both programs are intended to increase opportunities for Australian businesses to participate in major infrastructure investment and develop the capabilities needed to compete for future work.

For more information, go to the NSW Government's Local Jobs First webpage here.