NSW Government passes local procurement and labour hire reforms

The New South Wales Government has passed the Local Jobs First Bill 2026, a major procurement reform designed to prioritize local workers and businesses in state government tenders. The legislation establishes a permanent framework to leverage the state’s $40 billion annual procurement spend, including the creation of a Local Jobs First Commissioner and an Advisory Board. Key measures include a 30% tender weighting for contracts exceeding $7.5 million to support local and small businesses, a Future Skills Guarantee to mandate quotas for apprentices and trainees, and a supplier debarment scheme for misconduct.

In a separate legislative move, the government introduced the Local Government Amendment (Labour Hire) Bill 2026 to protect the pay and conditions of council workers. The bill aims to prevent labour hire employees from receiving lower remuneration than direct council employees performing the same roles. Under the proposed law, councils must ensure labour hire workers receive equivalent pay, including overtime, penalty rates, and bonuses, to close regulatory gaps that previously allowed labour hire to undercut standard council rates.