The Queensland Government has announced the biggest overhaul of its procurement policy in decades in a bid to make it simpler, fairer, and easier for businesses to bid for work from the State’s $35 billion annual spend.
Under the new Queensland Procurement Policy 2026, small, family, and regional businesses will be at the heart of how the government buys goods and services with clear targets, less paperwork, and greater transparency for taxpayers.
Key improvements include:
- Backing Queensland businesses with a 30% small and medium enterprise participation target for government contracts, ensuring local, family, and regional businesses are at the front of the queue;
- Australian-first focus on increasing spend with businesses that are owned by or support veterans;
- Increasing spend with female-led businesses and those that support people with disability;
- Supporting Indigenous business growth with at least 3% of annual procurement spend;
- Transparency and accountability guaranteed by publishing government spend data through a new public portal.
Treasurer, David Janetzki said the new policy delivered on the Government’s commitment to “restore respect for Queenslanders’ money”.
“Removing red tape, permanently scrapping BPIC, and focusing on value for money will improve productivity and drive the delivery of better infrastructure and services,” Mr Janetzki said.
“The former Labor Government voted against re-establishing the Queensland Productivity Commission, despite the clear need to address the drop in productivity and massive project blowouts during Labor’s decade of decline.”
Minister for Housing and Public Works, Sam O’Connor said the policy is about fairness, respect, opportunity and delivering real value for Queensland taxpayers and businesses.
“More Queensland businesses than ever before will benefit from the new Queensland Procurement Policy,” Minister O’Connor said.
“This will simplify the process so local businesses can get on with winning work, not wading through paperwork.
“Labor’s 700-page policy of complicated, punitive red tape shut small businesses out and regional spend fell over their last term and they failed to deliver on their own targets.
“We’re delivering a procurement policy that’s fairer, faster, and easier for Queensland businesses to navigate and benefit from government work.
“We’re backing Queensland’s small and family businesses by delivering better access to government work and more certainty to grow and employ local people.”
Business Chamber Queensland CEO, Heidi Cooper said the renewed Queensland Procurement Policy promises to provide opportunities to Queensland businesses and address challenges the businesses community has highlighted for many years.
“The Government’s commitment to SME participation, incentives to lift capability, and a reduction in red tape is welcome,” Ms Cooper said.
“With the growth ahead in Queensland and the global spotlight on our State, there is no better time to be championing and celebrating Queensland made products and the businesses that produce them every day. ”
Queensland Major Contractors Association (QMCA) CEO, Andrew Chapman welcomed the launch of the new Queensland Procurement Policy and the permanent removal of BPICs.
“BPICs forced up costs, slashed productivity and made collaboration between contractors and their workforce harder,” Mr Chapman said.
“Independent analysis for QMCA found they increased project costs by 15-30%. The permanent removal of BPICs restores balance and stability to the industry, allowing contractors to work constructively with employees and representatives to deliver projects safely, efficiently, and with better value for taxpayers and results for Queenslanders.”
