NSW Government introduces draft Local Jobs First Bill

The NSW Local Jobs First Bill will establish the Local Jobs First Commission and create New South Wales’ inaugural Local Jobs First Commissioner who will oversee the implementation of measures that support the growth of local industry and create local jobs.

The significance of Local Jobs First procurement policies

The NSW Government spends over $40 billion on goods and services and construction each year. This spend enables job creation, fosters skills development and drives opportunities for growth, supporting our economy. The benefits of this spend delivers legacy outcomes for communities that exist well beyond project completion and remain local if procurement policies explicitly prioritise local businesses and workers.

NSW Local Jobs First Bill

As part of its procurement reform agenda, the NSW Government is embarking on a major first step introducing the draft Local Jobs First Bill. Community members were invited to have their say on the draft Local Jobs First Bill back in February, which was targeted at supporting local jobs and apprentices and helping to grow local businesses.

Following in Victoria’s footsteps, this legislation will establish the Local Jobs First Commission and create New South Wales first Local Jobs First Commissioner. The new commissioner will oversee the implementation of measures that support the growth of local industry and create local jobs.

This bill forms part of a ongoing process to reform NSW government procurement to maximise the use of government spend to support industry, workforce and community. The draft Bill establishes the statutory functions of the Commissioner and introduces new expectations and minimum requirements for businesses supplying goods and services to the NSW government.

The draft Bill and regulations:

• Authorise the Governor to appoint a Local Jobs First Commissioner
• Enable the minister to appoint a Local Jobs First Advisory Board
• Require the Minister to issue a Local Procurement Policy
• Mandate that for procurements valued at $25 million or more, tender must use a minimum 30% weighting for local content
• Require suppliers to submit a Local Procurement Plan for procurements valued at $25 million or more
• Empower the Commissioner to request agency compliance information
• Enable the Commissioner to require agencies to performance manage suppliers

NSW Local Procurement Context

NSW’s local procurement environment is anchored by the NSW Small and Medium Enterprise (SME) and Regional Procurement Policy, which requires agencies to “first consider SMEs for all procurements up to $250,000” and to actively preference regional suppliers where possible (NSW Treasury, SME & Regional Procurement Policy, 2022). This policy has shaped how local content is delivered across major NSW Government projects, with agencies such as Transport for NSW embedding regional supplier panels for road maintenance, Health Infrastructure NSW mandating local subcontracting on hospital redevelopments, and Schools Infrastructure NSW requiring local trades engagement on new school builds and upgrades. These mechanisms have ensured that government investment directly supports local economies, capability building and job creation. The introduction of the NSW Local Jobs First Bill represents the next evolution of this commitment, formalising a statewide framework to grow local jobs, strengthen domestic industry participation, and ensure that major government projects deliver measurable economic benefits for NSW communities.

Benefits of Prioritising Local Procurement Outcomes

Government‑mandated local procurement has become one of Victoria’s most effective levers for translating public investment into broad‑based economic and social value. Through the Local Jobs First Policy and the transparent supplier engagement facilitated by ICN Victoria, major projects are now systematically channelling work to local industry, strengthening sovereign capability, and embedding long‑term skills development across the state. Key examples include the Level Crossing Removal Program (LXRP), West Gate Tunnel Project and the Footscray Hospital Redevelopment. These projects demonstrated high local content, strong participation of Victorian SMEs, sustainable pathways for cadets and trainees and diverse supply chain participation. With these outcomes demonstrating a consistent pattern: when local content is prioritised, Victorian businesses grow, regional economies diversify, and communities benefit from stable employment pathways and enhanced industry participation.

Conclusion

The shift toward Local Jobs First frameworks in Victoria, and now New South Wales, reflects a broader recognition that government procurement is a powerful tool for shaping economic and social outcomes. When local content is mandated and transparently monitored, the benefits are clear: stronger domestic industries, more resilient regional economies, and meaningful employment pathways that endure long after projects finish. NSW’s draft Local Jobs First Bill builds on Victoria’s proven model, setting the foundation for a more accountable and outcomes-driven procurement system that ensures public investment delivers lasting value for local workers, businesses and communities.

How can Sedo Group help?

As governments strengthen their commitment to local industry participation, contractors, suppliers and agencies all face a more complex set of expectations around local content, workforce development and transparent reporting. Sedo Group brings deep experience across Local Jobs First, Australian Industry Participation, Social Procurement, and Industry Capability uplift, helping organisations translate policy into practical, measurable outcomes.

Sedo Group can support your organisation to:

• Interpret and operationalise Local Jobs First requirements across NSW and Victoria, including local content weighting, Local Procurement Plans, and compliance expectations.
• Develop high-quality Local Industry Development Plans (LIDPs) and Local Procurement Plans that demonstrate credible commitments to local jobs, apprenticeships, regional participation and SME engagement.
• Map and activate local supply chains, leveraging our sector networks and understanding of the market to identify capable local partners.
• Build evidence-based social and economic impact narratives that strengthen tender submissions and position your organisation as a preferred supplier.
• Support ongoing reporting and performance management, ensuring compliance with Commissioner oversight and agency requirements.

As NSW moves toward a more structured, outcomes-focused procurement framework, Sedo Group can assist to provide the strategic guidance, policy literacy and practical tools needed to remain competitive and deliver genuine value to local communities.