Victoria’s Local Jobs First Amendment Bill: What Contractors Need to Know

On 31 July 2025, the Victorian Government introduced the Local Jobs First Amendment Bill into Parliament. This is a major legislative update designed to improve compliance, accountability and performance across government projects that are subject to Local Industry Development Plan (LIDP) requirements.

For construction and infrastructure suppliers working with or seeking Victorian Government contracts, these changes mark a significant shift from aspirational commitments to enforceable obligations.

What is the Local Jobs First Policy?

The Local Jobs First Policy, formerly known as the Victorian Industry Participation Policy (VIPP) has helped grow the Victorian economy by requiring government projects to use local workers, products and services. It is Australia’s leading procurement policy for local participation.

According to the official media release, over 60,000 local jobs have been supported through 382 strategic projects since 2014.

Key Changes to Local Content and LIDP Compliance

The Bill introduces several major changes:

• The Local Jobs First Commissioner can now inspect worksites (with notice)
• Contractors may face civil penalties for not meeting their commitments
• Government agencies can link payments to performance
• Suppliers who don’t comply may be deprioritised for future work
• The Minister can require locally made PPE and uniforms on major projects
• The law now includes clearer rules and broader objective.

These reforms are about improving transparency, accountability and support for local businesses.

Why These Changes Matter for Government Suppliers

If you work on government projects, you must meet your LIDP and local content targets.

Under this legislation:

• You’ll need to track and report on local jobs and products used
• You may face penalties if you don’t meet your commitments
• Your ability to win future contracts could be affected
• You’ll need clear systems and strong documentation

Being proactive is the best way to avoid risk.

How Sedo Group Supports LIDP and Local Jobs First Compliance

Sedo Group are experts in procurement policy, LIDPs and local content planning. We help businesses deliver on their government project obligations.

Our services include:

• Writing and reviewing Local Industry Development Plans
• Setting up local content tracking systems
• Preparing for site inspections or audits
• Supporting Aboriginal business and SME engagement
• Ensuring compliance across project lifecycles

We work with construction and infrastructure firms to help them succeed on government tenders.

Ready to Strengthen Your Compliance?

Now is the time to prepare. The new Bill sets higher expectations and we can help you prepare for these changes.

Contact Sedo Group to get expert advice on your next Local Jobs First project.