Australian Procurement Thresholds
At what dollar value does each government have to run an open, competitive tender? This reference page compares thresholds, SME policies, and local content rules across all jurisdictions.
Every Australian government — federal, state, and territory — sets a financial threshold above which procurement must go through an open, competitive tender process. Below these thresholds, agencies can use simplified purchasing methods like direct engagement or requesting quotes from a small number of suppliers. Understanding these thresholds helps you identify where opportunities are publicly advertised and where you may need to be on existing supplier panels to compete.
Beyond thresholds, each jurisdiction has policies designed to support small and medium enterprises (SMEs), local businesses, and Indigenous-owned businesses. These policies can give smaller suppliers a genuine competitive advantage — particularly at state and territory level where local content requirements are strongest.
Open tender thresholds by jurisdiction
SME / Local Policy: Contracts under $200,000 can be limited to SMEs. Commonwealth Indigenous Procurement Policy (IPP) targets for Indigenous businesses.
From Nov 2025, Australian-only tender threshold rises to $125,000 for non-construction.
SME / Local Policy: SME and Regional Procurement Policy gives preferential treatment to SMEs for contracts under $3 million. 10% price preference for regional suppliers.
Procurements under $150,000 may use direct engagement or limited quotes.
SME / Local Policy: Social Procurement Framework requires consideration of social and sustainable outcomes. Local Jobs First policy applies to projects over $1 million (metro) or $500,000 (regional).
Victorian Industry Participation Policy (VIPP) local content requirements for major projects.
SME / Local Policy: Buy Queensland approach supports local suppliers. Regional businesses given consideration. 30% weighting for local benefits on projects over $2.5 million.
Queensland uses a tiered procurement model with thresholds varying by category. Check the current Queensland Procurement Policy for specific values.
SME / Local Policy: Buy Local Policy provides up to 20% price preference for regional businesses. Western Australian Industry Participation Strategy for contracts over $2 million.
Contracts under $250,000 can use direct sourcing or limited quotes.
SME / Local Policy: Industry Participation Policy applies to contracts over $4 million. South Australian businesses given consideration through the Economic Contribution Test.
SA has one of the highest thresholds at $220,000 before open tender is required.
SME / Local Policy: Buy Local Policy supports Tasmanian businesses. Price preference of up to 10% for local suppliers on contracts under specified thresholds.
Smaller supplier market means less competition for many tenders.
SME / Local Policy: Buy Local Plan provides up to 20% local preference. Aboriginal Business Enterprise (ABE) engagement requirements on eligible contracts.
Remote geography means many tenders require local delivery capability.
SME / Local Policy: Aboriginal and Torres Strait Islander Procurement Policy for eligible contracts. Government Procurement (Charter of Procurement Values) Direction 2020.
ACT procurement reforms effective 2026 introduce new social value requirements.
Quick comparison
| Jurisdiction | Goods & Services | Construction | Key Local Policy |
|---|---|---|---|
| Federal | $80,000 | $400,000 | Contracts under $200,000 can be limited to SMEs. |
| New South Wales | $150,000 | $250,000 | SME and Regional Procurement Policy gives preferential treatment to SMEs for contracts under $3 million. |
| Victoria | $150,000 | $200,000 | Social Procurement Framework requires consideration of social and sustainable outcomes. |
| Queensland | Tiered | Tiered | Buy Queensland approach supports local suppliers. |
| Western Australia | $250,000 | $250,000 | Buy Local Policy provides up to 20% price preference for regional businesses. |
| South Australia | $220,000 | $220,000 | Industry Participation Policy applies to contracts over $4 million. |
| Tasmania | $100,000 | $250,000 | Buy Local Policy supports Tasmanian businesses. |
| Northern Territory | $100,000 | $100,000 | Buy Local Plan provides up to 20% local preference. |
| Australian Capital Territory | $200,000 | $200,000 | Aboriginal and Torres Strait Islander Procurement Policy for eligible contracts. |
Thresholds are GST-exclusive. Last updated March 2026. Always verify current thresholds with the relevant jurisdiction as policies can change.
Frequently asked questions
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