Buy Australian Plan: What It Means for Contractors
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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.

The Obligation
$7.5m
Australian-only invitations below this
EvidenceAustralian business declaration
DeadlineEach procurement
OwnerDepartment of Finance (Procurement Capability Branch)

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.

$7.5m
Construction procurement threshold, GST inclusive
$10,000
Where the Australian-only rule starts
50%
Minimum Australian ownership in the business test
1 July 2026
AusTender reporting start date for entities
Who It Applies To

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.

Australian-Only Invitations
$10,000 to below $7.5m
Construction services. Non-corporate entities invite only Australian businesses
Non-Construction Threshold
$125,000
Goods and services, lifted from $80,000
Ownership Test
50% or more
Australian owned including any parent, or principally traded on an Australian equities market
Tax And Location Test
Both required
Australian resident for tax, with principal place of business in Australia
Supplier Declaration
Required
May use the Australian Business Declaration Form or the approach to market itself
Indigenous Procurement First
Applied first
The Mandatory Set Aside comes before the Australian business rule where it applies
Broader Economic Benefit
Above $7.5m
Construction. Officials consider benefit to the Australian economy
SME Purchasing Targets
25% and 40%
Government targets by value, for contracts up to $1 billion and up to $20 million

What you report, and when.

Mandatory from 1 July 2026

Australian Business Contract Data

To AusTender, by the relevant entity (not the contractor)

Where relevant, at contract reporting

Reason An Australian Business Was Not Contracted

To AusTender, by the relevant entity

With your response to the procurement

Australian Business Declaration

To the procuring entity

Evidence To Keep
  • 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
Where Teams Get Caught

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.

In Catchment

How Catchment manages the Buy Australian Plan.

Australian Business Spend By Package

SocialPro

The 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

GovAssure

The 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

GovAssure

The 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

SocialPro

Certified 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.

Ready To Adopt In Catchment
Commonwealth Buy Australian Plan
Targets and Commitments
Australian Business Spend
Documents and Forms
Broader Economic Benefits Assessment
AusTender Contract Notice

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.

Connected Obligations
Commonwealth Indigenous Procurement PolicyNational (First Nations)Australian Skills GuaranteeNational (Skills & Training)Environmentally Sustainable Procurement PolicyNational (Environment)Local Jobs FirstVIC (Local Content)
Sources
  1. Buy Australian Plan (Department of Finance)
  2. Commonwealth Procurement Rules 17 November 2025 (Department of Finance)
  3. Consideration of Australian businesses for procuring officials (Department of Finance)
  4. The Commonwealth Procurement Rules are changing (Department of Finance)
  5. 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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