While Queensland, Victoria and New South Wales have introduced significant social procurement reforms in recent years, several other Australian jurisdictions are also strengthening how government purchasing delivers economic, social and community outcomes.
Tasmania may be Australia’s smallest state, but it’s making meaningful strides in using procurement to drive social and economic outcomes. As governments across the country increasingly look beyond price when awarding contracts, Tasmania is embracing approaches that support local industry, create employment opportunities and deliver greater value to communities through public spending.
Tasmania’s Buy Local Policy, most recently updated in August 2026, represents one of Australia’s most direct approaches from a state government requiring social and economic benefits be planned and delivered through government procurement. The policy is designed to ensure government spending delivers broader benefits to the Tasmanian community while maintaining a strong focus on value for money.
For suppliers seeking to win Tasmanian Government contracts, understanding these latest requirements is increasingly important, as social and economic outcomes play a significant role in procurement evaluations.
A key feature of the Buy Local Policy is the Economic and Social Benefits Test (ESBT). The ESBT is mandatory for all open RFTs valued at $100,000 or more and for RFQs where the supplier pool includes non-Tasmanian businesses. The ESBT carries a weighting of 30% of the overall evaluation criteria, ensuring social benefits are considered alongside price and capability.
To respond to the ESBT, suppliers must submit an Economic and Social Benefits Statement (ESB Statement) outlining the economic and social benefits they will deliver to Tasmania if awarded the contract. Depending on the procurement opportunity, suppliers may be asked to demonstrate benefits across areas such as:
- Maximising Tasmanian job opportunities
- Employment pathways for job seekers and lower-skilled workers
- Supporting apprenticeships, traineeships and skills development
- Local sourcing of goods and services
- Participation of Tasmanian SMEs
- Engagement with social enterprises
- Innovative local solutions
- Use of recycled materials and green technology
- Reducing modern slavery risks
Suppliers that fail to provide an ESB Statement receive a zero score against the ESBT criterion.
For higher-value projects, the Tasmanian Government also requires a Tasmanian Industry Participation Plan (TIPP). TIPPs are mandatory for procurements above $5 million and may also apply to projects valued between $2 million and $5 million. The requirement of a TIPP is intended to ensure a supplier can demonstrate the economic and social benefits they will deliver and how delivery will support the ongoing development of Tasmanian industry capability.
The updated Buy Local Policy highlights a broader shift in public procurement. Increasingly across government procurement, suppliers are expected to demonstrate how their proposal will create value for money for local industry and communities, not simply offer the lowest price.
By embedding social and economic considerations into evaluation processes, Tasmania has positioned social benefit as a core component of its value for money framework. The 30% weighting applied to the Economic and Social Benefits Test (ESBT) is also notable in a national context, exceeding the social procurement weightings commonly applied in many other jurisdictions and reinforcing the importance of community outcomes in procurement decisions.
Organisations looking to expand into the Tasmanian Government procurement market should ensure they can clearly articulate the economic and social value their proposal will deliver to Tasmania.
