The Victorian Government is moving to reinforce its commitment to local manufacturing, jobs, and businesses through new legislation aimed at ensuring taxpayer-funded projects deliver benefits within the state.
The Local Jobs First Amendment Bill, introduced by the Labor Government, proposes a suite of compliance and enforcement powers to strengthen the existing Local Jobs First Act 2003, the nation’s first industry participation law.
The amendments aim to hold contractors accountable for their commitments to engage local workers and use locally made products, particularly in government projects, the government said in a news release.
If passed, the Bill will enable the Local Jobs First Commissioner to issue civil penalties, conduct site inspections, and ensure stronger oversight of contract compliance.
Minister for Industry and Advanced Manufacturing Colin Brooks said the legislation reinforces the government’s determination to keep the economic benefits of public projects within Victoria.
“Victorian Government contracts and projects should benefit Victorian workers and businesses. This Bill puts our state and our people first. It makes sure more money spent in Victoria, stays in Victoria,” Minister Brooks said.
A key feature of the proposed amendments is the ability to link contractor payments to performance outcomes, with suppliers who fail to meet local content obligations potentially deprioritised for future work.
The reforms also aim to provide more support for Aboriginal businesses, regional firms, and small to medium-sized enterprises, while guiding agencies to prioritise Australian Standards over imported alternatives in design specifications.
The Bill introduces provisions that would allow the Minister to mandate the use of locally manufactured personal protective equipment (PPE) and uniforms on certain projects, further boosting opportunities for Victorian manufacturers.
“We’re closing the loopholes, backing the Commissioner with more power, and making sure government contracts deliver for Victorians, driving local jobs, businesses and the economy,” Brooks added.
The proposed changes follow broad consultations with industry groups, unions, and stakeholders, and are intended to modernise the Act to reflect current market conditions while continuing to support manufacturing growth across the state.
Since December 2014, local content requirements have been applied to 382 Strategic Projects in Victoria, supporting more than 60,000 local jobs.
