Government opens door to Australian construction businesses

The changes to the procurement rules by the Federal Government to require that only Australian businesses be invited to tender for government construction contracts valued below $7.5 million has been welcomed by Master Builders Australia.

From 17 November 2025 businesses will need to declare themselves as an Australian business to be considered for prioritised contracts, with further information on the AusTender website.

Master Builders Australia CEO Denita Wawn said: “The challenges of carrying out government-funded work are long-standing and well-known across the building and construction industry.

“These changes are good news for our small to medium sized business, which make up 98 per cent of the industry.

“Every $1 million worth of building activity supports around $3 million across the economy and with the scale of infrastructure investment in the pipeline growing, now is the time for government procurement practices to maximise the positive economic impact government construction work can have in local economies and communities around the country.

“We have been calling for procurement reform over many years and appreciate that the Government has listened and are taking steps to support Australian business, particularly small business who are the engine room of the economy.

“Master Builders Australia will continue to work with the government on an approach to procurement that seeks to achieve value for money outcomes through competitive, transparent and accessible tendering processes. In addition, contractual flexibility is a must for operators who have been hampered by cost spikes, labour shortages and other supply chain complications out of their control.

“Procurement practices should always seek to offer clarity and certainty in tender processes and reduce costs to encourage a diverse range of businesses to participate in government funded building and construction projects,” concluded Ms Wawn.

Media contact: Dee Zegarac, National Director, External Affairs and Engagement

0400 493 071 | dee.zegarac@masterbuilders.com.au