NSW Government passes Local Jobs First reforms

The NSW Government has passed its Local Jobs First Bill 2026 that aims to prioritise local workers and businesses in NSW Government tenders. The government says the legislation — which it says has been backed by unions, businesses and industry groups — represents the most significant reform of NSW Government procurement in a generation.

New South Wales will now have a permanent framework that leverages its $40 billion annual procurement spend to deliver greater economic benefits across the state. Passage of the legislation also comes amid $12 billion in investments to re-establish a long-term pipeline of local rail manufacturing in the Hunter.

The government says the legislation delivers six major reforms:

• Establishing a Local Jobs First Commissioner to champion local industry, workers and suppliers across government procurement.
• Introducing a Local Procurement Policy prioritising local business in government tenders, through a 30% tender weighting for contracts valued over $7.5 million, to give a boost to local suppliers, regional enterprises and small businesses.
• Training the next generation of skilled workers through a new Future Skills Guarantee, mandating quotas for apprentices, cadets and trainees across government projects.
• Establishing a Local Jobs First Advisory Board to inform policies that support local suppliers to compete for NSW Government contracts.
• Requiring Local Procurement Plans for major contracts to lock in commitments to local jobs, local content, and regional and small and medium businesses’ participation.
• Establishing a supplier debarment scheme to exclude suppliers found to have engaged in serious misconduct from doing business with the NSW Government.
   

The NSW Government says it is committed to rebuilding NSW manufacturing industries by encouraging investment, building local capability and improving economic resilience.

“Today our Minns Labor government has delivered on a major election commitment to put local jobs and local businesses at the centre of government purchasing,” said Minister for Domestic Manufacturing and Government Procurement Courtney Houssos. “For the first time, NSW has legislation that requires government agencies to consider the local economic benefits when they spend taxpayer dollars.

“The Local Jobs First Commission will provide a permanent voice for local industry and help ensure more businesses have the opportunity to compete for government work on fair terms.”

“Business NSW has long advocated for a procurement system that gives local businesses a fair and genuine opportunity to compete for government work. The Local Jobs First legislation is an important step towards making that a reality,” said Business NSW CEO Daniel Hunter.

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