Tasmanian businesses no longer need to prove they benefit the local economy when bidding for government work, under changes to the state’s ‘Buy Local’ policy.
The updated rules, which took effect at the start of the year, automatically recognise economic and social benefits for any business registered in Tasmania that employs local workers.
The government says the changes will cut red tape, noting the policy has been in place since 2014 and that local businesses already win the vast majority of government contracts.
In 2024-25, Tasmanian firms secured $730.3 million in government contracts, with local suppliers accounting for 98% of the total contract value in the September quarter alone.
Tom Green, managing director of electrical firm Ingenuity Power Solutions, said the policy had helped his business secure specialist work on the state library development in Hobart.
“It breaks down bigger projects into smaller parts and it gives us the opportunity to really have a crack at securing some of that work,” he said.
Green said the certainty of government contracts also gave businesses the confidence to invest in training.
“It gives us the confidence to pursue those apprenticeship opportunities because we know the work is going to be there.”
Industry group representative Ben Shaw from the National Electrical and Communications Association said the policy helped protect local firms from interstate competition.
“We’ve had interstate raiders over the years who’ve come down and they do the work and really what we don’t see is that economic benefit flow into the communities,” he said.
“When we have Tasmanian contractors delivering Tasmanian projects, you can ensure that it’s a far better project.”
Shaw said local contractors were more than capable of delivering major projects but were often held back by bureaucracy.
“It’s not the quality, it’s not the ability for our contractors to do the work. It’s purely red tape,” he said.
Under the policy, agencies are still required to approach at least two Tasmanian businesses for contracts valued at $100,000 or more before approaching the market.
