The Victorian  Local Jobs First Act 2003 (the Act) has undergone significant reform through the Local Jobs First Amendment Act 2025, reshaping its compliance framework, enforcement mechanisms, and policy objectives.

The Local Jobs First (LJF) changes aim to strengthen local industry participation in Victorian Government procurement while ensuring greater accountability from both suppliers and agencies.

The Act now formally defines “Local Jobs First” as the overarching scheme comprising the legislation, regulations, and the LJF Policy. This clarification ensures consistency across all compliance and enforcement activities. It also introduces new terms such as “non-contestable project,” “significant diversion process,” and “completion report,” which underpin the new compliance regime.

Local Industry Development Plans

Local Industry Development Plans (LIDPs) have been reinforced as binding documents. Suppliers must adhere to commitments made in these plans, particularly regarding local content, job outcomes, and use of locally produced goods such as uniforms and PPE.

As before, agencies are prohibited from accepting tenders that lack compliant LIDPs.

Supplier and Agency Obligations

Suppliers are now explicitly required to comply not only with LJF commitments but also with reporting obligations, including the submission of completion reports within 90 days of practical completion.

Agencies must monitor and manage supplier compliance more rigorously, including ensuring contracts contain contingent payment mechanisms—meaning payments can be withheld if LJF obligations are not met.

Exemptions and Contestability

Two new exemptions have been introduced:

1. Emergency Exemption: Projects procured under an Emergency Procurement Plan are exempt from LJF.
2. Non-Contestable Projects: If a project is deemed non-contestable – meaning local industry cannot reasonably compete – it is exempt from LIDP requirements. Agencies must obtain contestability assessments for the Industry Capability Network before tendering.

New Policy Objectives

The Act now includes broader social and economic goals:

• Equitable opportunities for Aboriginal businesses
• Encouragement of regional Small and Medium Enterprises
• Promotion of Australian Standards
• Structuring tenders to support local market participation
• Prioritising local content in design and planning stages.

Strengthened Commissioner Powers

The LJF Commissioner’s role has been significantly expanded:

• Investigative Authority: The Commissioner can now initiate investigations, respond to complaints, and report findings to the Minister.
• Site Inspections: With notice, the Commissioner may conduct site inspections to verify compliance.
• Advisory Role: If both parties consent, the Commissioner can mediate and advise on resolving non-compliance.
• Non-Binding Recommendations: Agencies may receive recommendations on improving practices or resolving disputes.

The Commissioner must publish a complaints policy and can now issue compliance notices for failure to cooperate with inspections or information requests.

Enforcement and Penalties

Two major enforcement mechanisms have been introduced:

1. Deprioritisation Regime: Suppliers who fail to meet aggregate LIDP commitments or submit completion reports may be deprioritised for future projects. This applies only to new projects from 1 July 2026.
2. Civil Penalties: Courts may impose fines (up to 100 penalty units for individuals and 500 for corporations) for non-compliance with information or inspection notices.

A public deprioritisation register will be maintained, and suppliers may request reviews of deprioritisation decisions.

Reform Timelines

Some LJF reforms commenced on 20 August 2025, including new definitions, exemptions, and policy objectives. The remaining changes – particularly those involving enforcement and Commissioner powers – will be phased in by 1 July 2026. Transitional regulations and updated guidelines will support implementation.

Conclusion

These reforms mark a shift from policy encouragement to enforceable obligations, with a clear emphasis on transparency, accountability, and local economic development.

Resources

• Local Jobs First Act 2003 (Victorian Legislation)
• Local Jobs First Amendment Act 2025 (Victorian Legislation)
• Local Jobs First Commissioner (Local Jobs First)

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CourtHeath acknowledges the Traditional Aboriginal Owners of Country throughout Victoria and pays respect to Elders past and present, and to the ongoing living culture of Aboriginal people.

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