The Minns Labor Government has delivered on its election commitment to unlock government spending to support local workers, local businesses and communities with the passage of landmark legislation through the NSW Parliament.
The Local Jobs First Bill 2026 will, for the first time, prioritise local workers and businesses in NSW Government tenders.
The legislation – which has been backed by unions, businesses and industry groups – represents the most significant reform of NSW Government procurement in a generation.
For the first time, New South Wales will have a permanent framework that leverages the Minns Labor Government’s $40 billion annual procurement spend to deliver greater economic benefits across the state.
By passing these reforms, the NSW Government can spend taxpayers’ money to deliver the greatest possible benefit to the people who pay those taxes.
Passage of the legislation also comes amid $12 billion of strategic investments from the Minns Labor Government to re-establish a long-term pipeline of local rail manufacturing in the Hunter.
The legislation, developed after extensive consultation with unions, businesses, and industry groups, 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 per cent tender weighting for contracts valued over $7.5 million. This will give a boost to local suppliers, regional enterprises, and small businesses.
- Training the next generation of skilled workers through a new Future Skills Guarantee. This will mandate 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, 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 Minns Labor Government is committed to rebuilding our NSW manufacturing industries by encouraging investment, building local capability, and improving our economic resilience.
With the legislation now passed, work will continue on the development and implementation of the Local Procurement Policy and establishment of the Local Jobs First Commission.
Minister for Domestic Manufacturing and Government Procurement Courtney Houssos said:
“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.
“For the first time, NSW has legislation that requires government agencies to consider the local economic benefits when they spend taxpayer dollars.
“Passing this legislation is an important milestone and is part of a suite of initiatives we have to support local workers and businesses, including bringing rail manufacturing back to the Hunter.
“The Minns Labor Government is using its purchasing power to support local workers, strengthen manufacturing capability, grow skills and create more economic opportunities across New South Wales.
“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.
“I want to thank the union movement and industry and business groups for their consultation and feedback in developing this important legislation.”
Unions NSW Secretary Thomas Costa said:
"Every major government contract from here on has to answer how many local jobs, how many local apprentices, and how much local content it will support. This is the result of a strong union campaign to put a commonsense principle at the heart of state policy when the government spends a dollar it should strengthen local jobs.
"For a young person in regional NSW or western Sydney thinking about a trade, these laws mean the next major transport contract, the next housing build, or the next energy project has to bring apprentices through. That is the pipeline this state has been missing.”
Business NSW CEO Daniel Hunter said:
“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.
“Our members consistently tell us that government procurement needs to be simpler and more accessible, particularly for small and medium businesses. These reforms recognise the role businesses play in creating jobs and driving growth across NSW.
“Done well, Local Jobs First can help ensure more taxpayer dollars flow to local businesses, supporting jobs, stronger regional economies and more resilient supply chains.”
Australian Industry Group Head of NSW Helen Waldron said:
“We welcome the successful passing of the Local Jobs First Bill. This will provide the certainty and clarity that NSW businesses need to thrive in our rapidly changing economy.
“It is crucial that the NSW Government uses its procurement settings to support local industry and local jobs while maintaining value for money.”