South Australian Industry Participation Policy, in plain English
South Australian Government tenders above $550,000 carry a minimum 15% weighting for industry participation, rising to 20% above $10 million. Here is what that means for a head contractor, and who checks it.
What is the South Australian Industry Participation Policy?
The South Australian Industry Participation Policy (SAIPP) makes local economic benefit a scored part of state government tenders. Industry participation carries a minimum 15% weighting above $550,000 and 20% above $10 million. Suppliers commit through an Industry Participation Plan and report on it every six months to the Industry Advocate.
State Government Procurement
Public authorities apply the policy through their own procurement processes, and the Office of the Industry Advocate reviews acquisition strategies for projects above $550,000. Thresholds include GST.
Head Contractors And Trade Partners
The policy applies to suppliers and contractors from tender through contract management. A head contractor's plan covers employment and subcontracting commitments that reach trade partners (subcontractors).
South Australian Businesses
A business counts if it operates in South Australia and more than 50% of the workforce delivering the contract are South Australian residents. Agencies must seek at least one quote from an SA business above $55,000.
Supported Private Projects
Private and university projects receiving $2.5 million (GST exclusive) or more in government support or value-in-kind also fall under the policy, with a minimum 15% weighting in the recipient's evaluation of quotes.
What the South Australian Industry Participation Policy asks for.
What you report, and when.
Industry Participation Plan
To the procuring public authority
Supplier Declaration
To the Industry Advocate
Revised IP Plan
To the Industry Advocate, for approval
IPP Report
To the Industry Advocate
- Industry Participation Plan Or Tailored IP Plan
- Supplier Declaration
- Six-Monthly IPP Reports
- SA Workforce Residency Records
- Labour Hours By Worker Category
- Subcontracting Records By Trade Partner
Counting A Local Address As Local
The test is whether more than 50% of the workforce delivering the contract are South Australian residents, as well as the business operating in the state. A registered address alone does not show that, so check trade partners against the workforce on your job.
Pricing To The Wrong Weighting
The minimum moves from 15% to 20% above $10 million, and steel work can trigger 20% below that. Agencies can also set it higher, so read the evaluation criteria rather than assuming the floor.
Letting The Two-Week Window Slip
Each IPP Report is due within two weeks of the end of its six-month period, counted from your contract's Commencement Date. Workforce data needs to be current at that date, not gathered afterwards.
How Catchment manages the South Australian Industry Participation Policy.
SA Local Content By Category
SocialProThe SAIPP framework lists local content requirements for Building, Labour, Infrastructure, Supply of Product & Materials, Steel Related Items and Other, and you add the items and targets on the Content Origin step. Packages report line items against them each month, which gives you the record to report from.
SA Employment Committed
SocialProThe SA Employment Committed target starts as a count of people on the project, with no figure set. Set your plan's commitment on it. Each worker's attributes sit on the monthly record, and you define who counts as you set the target up, so it can follow the residency test in your plan.
Plan And Progress Documents In One Place
GovAssureThe framework adds a Standard IPP Plan or Tailored IPP Plan and an IPP Progress Report as document requirements. Set the frequency to half-yearly to match the IPP Report cycle, and keep each revision of your own plan in the Document Register.
Aboriginal Business Invoices
SocialProIf Aboriginal participation sits in your plan, Certified Spend holds one row per invoice with ABN, certification, value excluding GST and any invoice file you attach. It records the certification you hold and does not check it with the certifier.
Adopting this framework on a project generates these targets and documents. You can edit them to match your contract.
South Australian Industry Participation Policy questions.
What is the South Australian Industry Participation Policy?
It is the state policy that scores local economic benefit in government tenders. Competitive tenders above $550,000 carry a minimum 15% weighting for industry participation, and suppliers commit through an Industry Participation Plan. The Industry Advocate monitors compliance.
What is the SAIPP weighting for construction?
The minimum is 15% above $550,000 and 20% above $10 million. Buying structural or reinforcing steel, or having structural steelwork fabricated, lifts the minimum to 20% below that value. Agencies can set a higher weighting at any value, so check the evaluation criteria in the tender.
What counts as an SA business?
Under Treasurer's Instruction 18, a business qualifies for a procurement if it operates in South Australia and more than 50% of the workforce delivering the contract are South Australian residents. The test looks at the workforce on that contract, so it can differ from job to job.
What is a Tailored Industry Participation Plan?
It is a plan built for a particular project with the Office of the Industry Advocate, and it is mandatory above $50 million. A Statement of Intent forms stage one and benchmarks the plan submitted at stage two. Agencies can also use a tailored plan at lower values.
How often do you report under SAIPP?
The supplier gives the Industry Advocate an IPP Report within two weeks of the end of each six-month reporting period, starting from the contract's Commencement Date. Contracts shorter than six months have one period covering the whole term. Short projects of strategic importance can have a period set by the Industry Advocate.
What are the SAIPP targets on major projects?
Tailored plans on infrastructure and construction above $50 million seek a minimum 90% of labour hours from South Australian workers, and 20% of all labour hours from apprentices, trainees, Aboriginal workers and the long-term unemployed. The guidelines say penalties apply to lead contractors that miss targets.
Can SA agencies go directly to Aboriginal businesses?
Yes. Public authorities can procure directly from an eligible Aboriginal business up to and including $550,000, after confirming value for money through a written quote. An eligible business is 50% or more Aboriginal owned and meets the other tests in the guidelines.
- South Australian Industry Participation Policy Procedural Guidelines (effective 1 January 2023) (Government of South Australia, Office of the Industry Advocate)
- South Australian Industry Participation Policy (effective 1 January 2023) (Government of South Australia, Office of the Industry Advocate)
- South Australian Business (Office of the Industry Advocate)
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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