NSW passes Local Jobs First: 30% tender weighting over $7.5m

The NSW Parliament has passed the Local Jobs First Bill 2026, which includes a 30 per cent tender weighting for local businesses on government contracts valued over $7.5 million. For Sydney and NSW contractors who tender for state work, the weighting will change how bids are scored once the policy is written.

Minister for Domestic Manufacturing and Government Procurement Courtney Houssos announced the passage on 14 October 2026. The release says the reforms use the government’s roughly $40 billion annual procurement spend.

Why it matters

State work is a large part of the pipeline for civil, building and fit-out contractors. A fixed weighting for local content, local jobs and small business participation means price will no longer be the only lever at tender stage for contracts above the threshold.

The release says the reforms apply to NSW Government tenders and agency spending. It does not say whether builders or head contractors are covered by name, and it does not mention private developers. Contractors should treat the detail as unconfirmed until the policy is published.

Houssos said in the release: “The Local Jobs First Commission will provide a permanent voice for local industry.”

The numbers

The release lists six reforms:

1. A Local Jobs First Commissioner, to champion local industry, workers and suppliers in government procurement.
2. A Local Procurement Policy, with a 30 per cent tender weighting for contracts over $7.5 million, aimed at local, regional and small businesses.
3. A Future Skills Guarantee, setting quotas for apprentices, cadets and trainees on government projects. The release gives no quota numbers.
4. A Local Jobs First Advisory Board, advising on how local suppliers can win government contracts.
5. Local Procurement Plans for major contracts, with commitments on local jobs, local content, and regional and small and medium business participation.
6. A supplier debarment scheme, excluding suppliers found to have engaged in serious misconduct from doing business with the NSW Government.

The release does not define “major contracts” or “local”, and it does not say how the 30 per cent will be scored against price or other criteria. It also cites a separate $12 billion figure for rail manufacturing in the Hunter, which is not part of the tender weighting and is not used here.

What’s next

The release gives no start dates. It says work continues on developing the Local Procurement Policy and establishing the Local Jobs First Commission. Until those are published, the weighting method, the local definition and the apprentice quotas remain open.

Contractors who bid for NSW Government work have several questions to watch:

• Whether the 30 per cent applies to head contractors, subcontractors or both.
• How “local” is defined for a firm with interstate ownership or a Sydney office only.
• How the apprentice and trainee quotas will be measured on a project.
• How the debarment scheme will be triggered and reviewed.

Infrastructure demand is already a theme in regional NSW. The Hunter councils’ $938 million ask for infrastructure to support 61,000 homes shows how much state-funded delivery is being sought outside Sydney. More coverage is on the Sydney market page.