Tasmanian Government strengthens its Buy Local Policy from 31 July 2020

The Tasmanian Government has recently updated its Buy Local Policy to increase opportunities for Tasmanian businesses to compete for Government contracts. The updated policy applies from 31 July 2020 and imposes new requirements for Government agencies to adhere to when procuring goods and services.  The new Buy Local Policy applies to all agencies required to comply with the Treasurer’s Instructions issued under section 51 of the Financial Management Act 2016 (Tas) (for example, State Government Departments, Office of the Ombudsman, Marine and Safety Authority, TasTAFE and Tourism Tasmania).

The new policy replaces the Local Benefits Test and Local SME Industry Impact Statement requirements of the previous policy with a new Economic and Social Benefits Test and associated statement. The Economic and Social Benefits Test now applies to all competitive procurements valued at $100,000 or more and is weighted at 25 per cent of the total evaluation criteria.

The test requires suppliers to complete an Economic and Social Benefits Statement answering relevant questions, including whether the supplier:

  • is a Tasmanian small or medium enterprise (SME);
  • has a Tasmanian workforce;
  • will engage Tasmanian businesses as sub-contractors;
  • has invested in the Tasmanian community; and
  • will source Tasmanian produced goods and services.

The updated policy also raises the low value procurement threshold from $50,000 to $100,000. This means that Government agencies should approach Tasmanian businesses directly for procurements valued at less than $100,000, where there is local capacity, capability and value for money. For competitive procurement processes valued at $100,000 or more, agencies should approach at least two Tasmanian businesses, where Tasmanian capability exists.

The updated policy is available on the Purchasing Tasmania website.

Please note that there are also compliance requirements for State owned companies and Government Business Enterprises (GBEs) as outlined in the ‘Buy Local – Guidelines for Tasmanian Government Businesses’ document. The Premier also recently encouraged Tasmanian consumers to support local businesses in its ‘Buy Something Tasmanian’ campaign.

More information

If you have any queries or would like further information about this article, please contact:

Kathryn Speed
Principal
M: 0408 446 013
E: kspeed@pageseager.com.au

Ella Wade
Lawyer
T: (03) 6235 5161
E: ewade@pageseager.com.au

Published: 12 August 2020

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