Buy Australian Plan: what it means for contractors
The Buy Australian Plan is the government's program to use its purchasing power for local industry. For construction the live part is in the Commonwealth Procurement Rules: below $7.5 million, entities must generally invite only Australian businesses.
What is the Buy Australian Plan?
The Buy Australian Plan is the Commonwealth's program to use government purchasing to build local industry, led by the Department of Finance. Since 17 November 2025, the procurement rules generally require non-corporate entities to invite only Australian businesses for construction procurements from $10,000 up to the $7.5 million threshold.
Commonwealth Entities
The Australian business rule binds non-corporate Commonwealth entities. It covers procurements at or above $10,000 and below the relevant threshold, not procurements from a standing offer.
Head Contractors Bidding Under $7.5m
If you tender for Commonwealth construction services below the threshold, expect to declare that you meet the definition. A supplier that cannot declare it is set aside from that procurement.
Larger Construction Projects
Above $7.5 million the Australian-only rule does not apply, but officials must consider the economic benefit of the procurement to the Australian economy. Standing offers and Appendix A procurements are excepted.
Trade Partners And Suppliers
The rules read here test the tendering business. They set no share of Australian spend for a trade partner (subcontractor) package, although a contract or buyer may ask for it separately.
What the Buy Australian Plan asks for.
What you report, and when.
Australian Business Contract Data
To AusTender, by the relevant entity (not the contractor)
Reason An Australian Business Was Not Contracted
To AusTender, by the relevant entity
Australian Business Declaration
To the procuring entity
- Australian Business Declaration
- Ownership Records Including Any Parent
- Australian Tax Residency Record
- Principal Place Of Business Record
- Supplier ABN And Entity Records
- Local Spend Records Where The Contract Asks For Them
Forgetting The Parent Company
The ownership test applies to the business including any parent. A locally run company with a majority overseas owner may fail it, however Australian its workforce is.
Treating A Declaration As A Formality
Entities are expected to do due diligence on declarations, scaled to the procurement. Finance's guidance notes that a false declaration can bring action under the Commonwealth Supplier Code of Conduct, and false or misleading information to the Commonwealth is an offence.
Reading The Plan As A Local Content Target
The sources read here set no percentage of Australian spend for a head contractor. Do not put a Buy Australian percentage in a tender response unless the approach to market asks for one.
How Catchment manages the Buy Australian Plan.
Australian Business Spend By Package
SocialProThe built-in framework lists Australian Business Spend as a local content requirement, and you add the items and targets on the project's Content Origin step. Work packages then report line items each month, which is useful when a buyer asks what stayed in Australia, even though the rules set no percentage.
A Record Behind The Declaration
GovAssureThe ownership, tax and location tests are worth keeping together. Add your Australian Business Declaration as a Document requirement, and keep each version in the Document Register, which holds every revision with its date.
The Economic Benefit Paper Trail
GovAssureThe framework adds Broader Economic Benefits Assessment and AusTender Contract Notice as documents, so what you gave the buyer and what was published stay against the project. Catchment does not publish to AusTender, which is the entity's job.
Supplier Details Per Invoice
SocialProCertified Spend keeps one row per invoice with supplier ABN, entity type, certifications, value excluding GST and any invoice file you attach. That helps if a buyer asks about spend with Indigenous enterprises or small businesses alongside Australian content.
Adopting this framework on a project generates these targets and documents. You can edit them to match your contract.
Buy Australian Plan questions.
What is the Buy Australian Plan?
It is the Australian Government's program to use its purchasing power to help local business and build domestic capability. Its aims include opportunities on major infrastructure, simpler procurement for small and medium businesses, and more work for First Nations businesses. The Department of Finance leads delivery through its Procurement Capability Branch.
What counts as an Australian business for Commonwealth procurement?
A business, including any parent, with 50% or more Australian ownership or principally traded on an Australian equities market, that is an Australian tax resident and has its principal place of business in Australia. For paragraph 5.4 of the rules only, a New Zealand business is also included.
Does the Australian-only rule apply to a $20 million construction project?
No. It applies below the $7.5 million construction threshold. At that size officials must instead consider the economic benefit to the Australian economy, unless an exception such as a standing offer applies.
Can a Commonwealth entity still go to a non-Australian business under $7.5 million?
Yes, in limited cases. If there are no submissions or none represent value for money, the entity may use another procurement method. An official can also decide approaching Australian businesses is not appropriate, and must document why.
Is the Buy Australian Plan the same as a local content policy?
Not in the way state policies are. The sources read here set no local content percentage or plan for a contractor to report against, unlike Victoria's Local Jobs First. Its mechanism is who gets invited and what officials must weigh.
When did the Australian business rules start?
The updated Commonwealth Procurement Rules took effect on 17 November 2025. Finance's guidance sets a 1 July 2026 date for mandatory AusTender reporting by relevant entities. Finance has a separate guide on which version of the rules applies to a given procurement.
- Buy Australian Plan (Department of Finance)
- Commonwealth Procurement Rules 17 November 2025 (Department of Finance)
- Consideration of Australian businesses for procuring officials (Department of Finance)
- The Commonwealth Procurement Rules are changing (Department of Finance)
- Commonwealth Procurement Rules (Department of Finance)
Reviewed 4 November 2026. General information to help you plan reporting, not legal advice. Policies change, so check the current version with the policy owner before you rely on it.
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