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Queensland is overhauling its procurement rules, aiming to make it easier for local and smaller agencies to compete for state contracts, AdNews can reveal.
The Queensland Procurement Policy 2026 replaces long-standing frameworks with five strategic pillars built around local participation, innovation and transparency.
The changes, due to take effect from January 1, come as Queensland prepares for major government-led activity in the lead-up to the Brisbane 2032 Olympic and Paralympic Games.
The move follows the Federal Government’s own reset of procurement processes, part of a broader political push to remove administrative barriers for Australian SMEs.
Housing and Public Works minister Sam O’Connor said the new approach responds to years of frustration among agencies trying to navigate government procurement.
“For too long it has been too hard to do business with the Queensland Government,” O’Connor said.
“Red tape has made contracts unnecessarily complicated and stopped many small and family businesses from even trying.”
Under the new policy, agencies that complete a Queensland Government innovation challenge will be able to bypass competitive tendering for advertising and marketing contracts worth up to $500,000, provided the work is connected to their challenge success in the previous three years.
Contracts above $500,000 will also include a mandatory and purposeful public procurement criterion worth 10–20% of total evaluation weighting, requiring suppliers to demonstrate broader economic or social benefits such as local job creation, Indigenous participation or environmental considerations.
While this is designed to reward local value, agencies are likely to watch how consistently these criteria are assessed in practice.
Government buyers will be encouraged to engage the market earlier, allowing agencies to discuss campaign needs before formal RFPs are released, something many agencies have argued could lead to better-defined briefs.
Buyers must also invite at least one Queensland supplier, small business or regional enterprise to every routine procurement process, a measure intended to guarantee visibility in categories often dominated by national networks.
The policy introduces a 30% procurement target for Queensland SMEs, with expectations that regional participation will increase annually.
A Forward Procurement Pipeline outlining upcoming opportunities up to ten years ahead will be published, a level of visibility that may help agencies plan staffing and investment, though the accuracy of long-range pipelines has historically varied across jurisdictions.
Financial settings are also shifting. General exemption thresholds rise to $50,000 and diverse-supplier exemptions for advertising and marketing increase to $500,000.
Queensland suppliers are defined as agencies with an ABN registered in the state and staff working within 250km of the agency’s base, a condition that may raise questions for interstate groups operating hybrid or remote teams.
Transparency requirements have been expanded: contracts above $500,000 must disclose procurement methods and weighted criteria, while those exceeding $8.5 million will require publication of KPIs, milestones and performance arrangements.
A new Queensland Procurement Solution platform will consolidate tender listings currently spread across multiple systems.
The policy also permits contract “set-asides” exclusively for diverse suppliers, including Indigenous-owned agencies and social enterprises.
Significant projects will require formal management plans outlining performance oversight, reporting expectations and dispute processes.
The government will convene a Procurement Roundtable each year, following an initial roundtable in early 2025 that shaped the policy’s development.
O’Connor said the annual forum will help monitor implementation and industry feedback.
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