The Buy Australian Plan will improve the way government contracts work and build domestic industry capability through the Australian Government’s purchasing power. Commonwealth procurement is a major economic lever, and the Government will use its significant purchasing power to support all businesses to deliver better value for money, grow the local economy and strengthen our domestic industry and manufacturing capability. The Buy Australian Plan will:
- maximise opportunities for Aussie businesses in major infrastructure projects
- open the door to more government work for more small and medium businesses by decoding and simplifying procurement processes
- establish a Secure Australian Jobs Code to prioritise secure work in government contracts and ensure that government purchasing power is being used to support businesses that engage in fair, equitable, ethical and sustainable practices
- provide more opportunities for First Nations businesses with a view to maximise skills transfer so that we can get more First Nations workers into long-term skilled work
- level the playing field by bringing in a Fair Go Procurement Framework requiring those that gain government contracts to pay their fair share of tax
- support industry sectors through the government’s purchasing power
- use government spending power to take action on climate change and support energy projects
- strengthen Defence industries and capability
- make National Partnerships work to maximise the use of local workers and businesses.
The Australian Government will provide $18.1 million over 4 years from 2023-24 (and $1.5 million per year ongoing) to the Department of Finance to improve government procurement processes for businesses, including by:
- delivering tools to improve the ability of businesses to compete for procurement opportunities more effectively
- improving AusTender to increase transparency and establish a supplier portal for panels
- increasing engagement with small-to-medium enterprises to promote awareness of opportunities to sell to the Australian Government
- improving procurement and contract management capability across the Australian Public Service to deliver value-for-money Commonwealth procurements.
This measure builds on the 2022-23 October Budget measure titled Buy Australian Plan.
Procurement Capability Branch
The Procurement Capability Branch has been established in the Department of Finance to support delivery of the Buy Australian Plan and actively support local industry take advantage of government purchasing opportunities. The Branch will:
- coordinate implementation of the Buy Australian Plan across the Australian Public Service
- strengthen engagement with states and territories to deliver economic, social and environmental benefits to regions, industry sectors and communities
- build the procurement and contracting capabilities of the Australian Public Service, and
- engage directly with businesses and industry sectors to help lift their competitive capabilities.
The 2023-24 Budget commitment builds on the creation of the Branch by improving AusTender, increasing engagement with businesses and improving procurement capability across the Australian Public Service.
This will make procurement clearer and simpler to help small and medium-sized enterprises, First Nations businesses, regional and remote businesses, and industry sectors to compete for and win more government contracts.
Note: The Procurement Capability Branch was previously named the Future Made in Australia Office. The name has been changed to reduce confusion with the Government’s Future Made in Australia package.
Next Steps
A progress report on the implementation of the Buy Australian Plan will be provided on this webpage soon.
