Senator the Hon Katy Gallagher

The Albanese Labor Government is delivering on our election commitment to prioritise Australian businesses in Government purchasing.

From 17 November 2025, rules for procurement will require that only Australian businesses be invited to tender for government contracts valued below $125,000. For construction services, the requirement to prioritise Australian businesses extends to government contracts valued below $7.5 million.

Commonwealth Government procurement is a major economic lever, and Australian businesses will now be front of the queue for approximately 31,000 Australian government contracts, valued at almost $2 billion (based on 2024‑25 data).

These changes in government procurement demonstrate our commitment to supporting Australian businesses while still meeting our international trade obligations.

The increase in the non-construction threshold for open tendering, from $80,000 to $125,000, is the first time the threshold has been increased in over 20 years.

Businesses will need to declare themselves as an Australian business to be considered for prioritised contracts. The definition of an Australian business was released earlier this year following a public consultation process, and detailed guidance is available to assist businesses with applying the definition.

The Government is also improving AusTender, the central procurement information system. Starting in October 2025, the Supplier Portal will be introduced to give suppliers control over their own information and display their key characteristics. Suppliers will be able to detail their businesses capabilities and identify whether they are an Australian business, First Nations business, and/or a small or medium enterprise. Starting with the 645 suppliers on the Management Advisory Panel and People Panels, the Supplier Portal will be available for all suppliers to join from July 2026.

The Supplier Portal also delivers on our commitment to establish a publicly searchable, voluntary register for women-owned businesses tendering for government work. When a business registers on the Supplier Portal it will be able to identify whether it is a women-owned business. From 2026-27, the Government will report on the number of contracts being awarded to women-owned businesses.

Quotes attributable to Senator Katy Gallagher, Minister for Finance: 

“This is about making sure more of the Commonwealth’s purchasing power flows directly to Australian businesses, creating local jobs and supporting our economy.”

“For the first time in more than two decades, we’re raising the tender threshold and prioritising Australian suppliers. That means small and medium enterprises will have better access to government contracts worth billions of dollars each year.”

“The new Supplier Portal will also make it easier for businesses to put themselves forward, giving them more visibility and more opportunities. It’s a practical reform that will help level the playing field, including for First Nations businesses, SMEs and women-owned businesses.”

“This is a big change in the way government does business, it’s about backing Australian capability and making sure taxpayer dollars support Australian jobs.”

Further Information: 

For detailed information on the prioritisation of Australian businesses visit: https://sellingtogov.finance.gov.au/ 

For guidance on the Australian business definition visit: https://www.finance.gov.au/australian-business 

For information and guidance on the Supplier Portal visit: https://help.tenders.gov.au/getting-started-with-austender/central-procurement-systems-enhancements