1Purposes

The purposes of this Act are—

S. 1(a) amended by No. 35/2018 s. 6(1).

(a)

to provide for the development and implementation of a Local Jobs First Policy; and

S. 1(b) amended by No. 35/2018 s. 6(2), substituted by No. 31/2025 s. 24(1).

(b)

to require reports to Parliament on the implementation of, and government agencies' compliance with, Local Jobs First; and

S. 1(c) inserted by No. 35/2018 s. 6(3).

(c)

to establish the office of the Local Jobs First Commissioner; and

S. 1(d) inserted by No. 35/2018 s. 6(3).

(d)

to confer functions on the Local Jobs First Commissioner under this Act; and

S. 1(e) inserted by No. 35/2018 s. 6(3), amended by No. 31/2025 s. 24(2).

(e)

to provide for compliance with and enforcement of Local Jobs First and Local Industry Development Plans.

2Commencement

(1)

Subject to subsection (2), this Act comes into operation on a day or days to be proclaimed.

(2)

If a provision of this Act does not come into operation before 1 January 2004, it comes into operation on that day.

3Definitions

(1)

In this Act—

S. 3(1) def. of Adverse Publicity Notice inserted by No. 35/2018 s. 7(1)(a).

Adverse Publicity Notice means a notice issued under section 29(1);

agency means—

(a)

a department; or

(b)

a public body—

within the meaning of the Financial Management Act 1994;

S. 3(1) def. of civil penalty requirement inserted by No. 31/2025 s. 16.

civil penalty requirement—see section 30A;

S. 3(1) def. of Commis-sioner inserted by No. 35/2018 s. 7(1)(a).

Commissioner means the Local Jobs First Commissioner appointed under section 12;

S. 3(1) def. of compliance notice inserted by No. 35/2018 s. 7(1)(a).

compliance notice means a notice issued under section 26(1);

S. 3(1) def. of Department amended by Nos 43/2012 s. 3(Sch. item 56.1), 70/2013 s. 4(Sch. 2 item 55.1), substituted by Nos 35/2018 s. 7(1)(b), 31/2025 s. 25(2).

Department means the Department of Jobs, Skills, Industry and Regions;

S. 3(1) def. of Department Head inserted by No. 35/2018 s. 7(1)(a).

Department Head has the same meaning as in section 4(1) of the Public Administration Act 2004;

S. 3(1) def. of information notice inserted by No. 35/2018 s. 7(1)(a).

information notice means a notice issued under section 24(2);

S. 3(1) def. of inspection notice inserted by No. 31/2025 s. 9.

inspection notice means a notice issued under section 18C(2);

S. 3(1) def. of local content inserted by No. 35/2018 s. 7(1)(a).

local content means—

(a)

goods that are produced by local industry; or

(b)

services that are supplied by local industry; or

(c)

construction activities carried out by local industry;

local industry means industry and other businesses based in Australia or New Zealand;

S. 3(1) def. of Local Industry Development Plan inserted by No. 35/2018 s. 7(1)(a), amended by No. 31/2025 s. 4(2).

Local Industry Development Plan means a plan submitted under section 7D, as varied from time to time (unless the context otherwise requires);

S. 3(1) def. of Local Jobs First inserted by No. 31/2025 s. 25(1).

Local Jobs First means the scheme established under this Act and set out in—

(a)

this Act and the regulations; and

(b)

the Local Jobs First Policy;

S. 3(1) def. of Local Jobs First Policy inserted by No. 35/2018 s. 7(1)(a).

Local Jobs First Policy means the Local Jobs First Policy referred to in section 4;

S. 3(1) def. of Major Projects Skills Guarantee inserted by No. 35/2018 s. 7(1)(a).

Major Projects Skills Guarantee means the policy referred in section 4(6);

S. 3(1) def. of non-contestable project inserted by No. 31/2025 s. 40.

non-contestable project means a standard project or a strategic project that is determined to be non-contestable in accordance with section 4B;

S. 3(1) def. of rural and regional Victoria inserted by No. 35/2018 s. 7(1)(a).

rural and regional Victoria has the same meaning as in the Regional Development Victoria Act 2002;

S. 3(1) def. of significant diversion process inserted by No. 31/2025 s. 4(1).

significant diversion process, in relation to a Local Industry Development Plan for a standard project or strategic project, means—

(a)

a process prescribed for the purposes of section 7DA; or

(b)

if no process is prescribed, the process set out in the Local Jobs First Policy for the approval of changes to commitments relating to the percentage or value of local content for the project;

S. 3(1) def. of site inspection inserted by No. 31/2025 s. 9.

site inspection means entry and inspection of a place or premises in accordance with an inspection notice;

S. 3(1) def. of standard project inserted by No. 35/2018 s. 7(1)(a).

standard project means the following—

(a)

a project with a budget of $1 million or more that is for the benefit of an area that is wholly in rural and regional Victoria;

(b)

a project with a budget of $3 million or more that is for the benefit of an area that is wholly outside rural and regional Victoria;

(c)

a project with a budget of $3 million or more that is for the benefit of an area that includes rural and regional Victoria and an area outside rural and regional Victoria;

(d)

any other project with a budget of less than $3 million declared by the Minister to be a standard project under section 7A(1);

S. 3(1) def. of strategic project inserted by No. 35/2018 s. 7(1)(a).

strategic project means—

(a)

a project with a budget of $50 million or more; or

(b)

any other project with a budget of less than $50 million declared by the Minister to be a strategic project under section 7A(2);

S. 3(1) def. of total content inserted by No. 35/2018 s. 7(1)(a).

total content means goods, services or construction activities for a standard project or a strategic project;

S. 3(1) def. of Victorian Industry Participation Policy inserted by No. 35/2018 s. 7(1)(a).

Victorian Industry Participation Policy means the policy referred to in section 4(5).

S. 3(1) def. of VIPP repealed by No. 35/2018 s. 7(1)(c).

* * * * *

S. 3(2) amended by Nos 43/2012 s. 3(Sch. item 56.2), 70/2013 s. 4(Sch. 2 item 55.2), 35/2018 s. 7(2).

(2)

If the name of the Department of Economic Development, Jobs, Transport and Resources is changed, a reference in the definition of Department in subsection (1) to that Department is taken, after the change, to be a reference to the Department by its new name.

Pt 2 (Heading) inserted by No. 35/2018 s. 8, substituted by No. 31/2025 s. 26.

Part 2—Local Jobs First—application and obligations

S. 4 (Heading) substituted by No. 35/2018 s. 9(1).

4The Local Jobs First Policy

(1)

The Victorian Government must develop and implement a policy with respect to the participation by local industry in projects, developments, procurements and other initiatives undertaken or funded (whether wholly or partially) by the State.

S. 4(2) amended by No. 35/2018 s. 9(2).

(2)

The policy is to be known as the Local Jobs First Policy.

S. 4(3) substituted by No. 31/2025 s. 27.

(3)

The policy may include any guidelines or material prepared by the Minister regarding the application of, and procedures to be followed in complying with, this Act, the regulations or the policy.

S. 4(4) inserted by No. 35/2018 s. 9(3).

(4)

The Local Jobs First Policy is comprised of—

(a)

the Victorian Industry Participation Policy; and

(b)

the Major Projects Skills Guarantee.

S. 4(5) inserted by No. 35/2018 s. 9(3).

(5)

The Victorian Industry Participation Policy is an industry development policy designed to ensure small and medium-sized enterprises are given full and fair opportunity to compete for Victorian government contracts.

S. 4(6) inserted by No. 35/2018 s. 9(3).

(6)

The Major Projects Skills Guarantee is a policy that provides job opportunities for apprentices, trainees and cadets on high value construction projects.

S. 4A (Heading) amended by No. 31/2025 s. 41(1).

S. 4A inserted by No. 35/2018 s. 10.

4ACompliance with Local Jobs First

S. 4A(1) amended by No. 31/2025 s. 41(2), substituted by No. 31/2025 s. 5.

(1)

A person or agency to which Local Jobs First applies must comply with Local Jobs First, including but not limited to any reporting obligations under the Local Jobs First Policy.

S. 4A(2) substituted by No. 31/2025 s. 45(1).

(2)

An agency must ensure that a contract for a standard project or a strategic project requires a person providing goods, services or construction activities under the contract to comply with—

(a)

Local Jobs First; and

(b)

the Local Industry Development Plan.

S. 4A(2A) inserted by No. 31/2025 s. 20.

(2A)

Unless it is not practicable or appropriate to do so, an agency must ensure that a contract for a standard project or a strategic project makes any liability of the agency to pay money to a person providing goods, services or construction activities under the contract contingent on compliance by the person with—

(a)

any obligation imposed on the person by the contract to comply with Local Jobs First; and

(b)

any requirement of a Local Industry Development Plan.

Note

The provisions of the Building and Construction Industry Security of Payment Act 2002 have effect despite any provision to the contrary in any construction contract—see Part 2 and section 48(1) of that Act.

S. 4A(3) amended by No. 31/2025 s. 45(2).

(3)

Despite subsections (1) and (2)(a) and (b), the Minister may exempt an agency from the requirements of Local Jobs First in respect of a standard project or a strategic project if the Minister is satisfied that exceptional circumstances apply.

S. 4A(4) inserted by No. 31/2025 s. 41(3).

(4)

For the purposes of this section, Local Jobs First is taken not to apply to an agency in relation to a standard project or a strategic project for which the agency has obtained a determination under section 4B that the project is non-contestable.

S. 4A(5) inserted by No. 31/2025 s. 44.

(5)

The accountable officer of an agency to which Local Jobs First applies must ensure that the agency complies with Local Jobs First.

S. 4A(6) inserted by No. 31/2025 s. 44.

(6)

In this section—

accountable officer, in relation to an agency, means the accountable officer under section 42 of the Financial Management Act 1994 for the agency.

S. 4B inserted by No. 31/2025 s. 42.

4BNon-contestable projects

(1)

Before undertaking a tender process for a standard project or a strategic project, an agency must obtain, in the manner set out in the Local Jobs First Policy, a determination whether the project is a non-contestable project within the meaning of subsection (2).

(2)

A standard project or a strategic project is a non-contestable project if—

(a)

either—

(i)

it is not practicable for local industry to provide or carry out goods or services required for the project as a whole on a genuinely competitive basis; or

(ii)

it is not practicable for goods or services required for the project as a whole to be provided or carried out on a genuinely competitive basis except by local industry; and

(b)

the project meets any requirements for non-contestable projects specified in the Local Jobs First Policy.

(3)

Guidelines referred to in section 4(3) may include processes for, and matters that must be considered during, determinations under subsection (1).

S. 4C inserted by No. 31/2025 s. 42.

4CEmergency exemptions

(1)

Local Jobs First does not apply to a person or an agency in respect of a standard project or a strategic project if the procurement of goods or services for the project is—

(a)

carried out in accordance with any relevant emergency procurement plan that is in force; and

(b)

carried out for the purposes of the response to, or recovery from, an emergency; and

(c)

consistent with any relevant supply policy.

(2)

In this section—

emergency has the same meaning as in the Emergency Management Act 2013;

emergency procurement plan means a plan—

(a)

for the procurement of goods and services in response to an emergency; and

(b)

prepared by an agency in accordance with a supply policy;

supply policy means a supply policy made under section 54L of the Financial Management Act 1994.

S. 4D inserted by No. 31/2025 s. 6.

4DCompliance monitoring and management by agency

An agency must monitor, and take all reasonable steps to manage, the compliance by any person with whom the agency enters into a contract for a standard project or a strategic project with—

(a)

the Local Industry Development Plan; and

(b)

any obligation imposed on the person by the contract to comply with Local Jobs First; and

(c)

the person's reporting obligations under the Local Jobs First Policy including, but not limited to, the submission of a completion report; and

(d)

any other obligation imposed on the person by Local Jobs First.

S. 5 (Heading) amended by No. 35/2018 s. 11(1).

S. 5 amended by Nos 35/2018 s. 11(2), 31/2025 s. 22(2) (ILA s. 39B(1)).

5Local Jobs First Policy objectives

(1)

In developing the Local Jobs First Policy, regard must be had to the following objectives—

(a)

promoting employment and business growth by expanding market opportunities for local industry;

S. 5(1)(ab) inserted by No. 31/2025 s. 22(1).

(ab)

providing Aboriginal businesses with equitable opportunities to participate in projects undertaken or funded (whether wholly or partially) by the State;

S. 5(1)(ac) inserted by No. 31/2025 s. 22(1).

(ac)

encouraging the participation of small and medium-sized enterprises based in regional areas in projects undertaken or funded (whether wholly or partially) by the State;

S. 5(1)(ad) inserted by No. 31/2025 s. 22(1).

(ad)

encouraging the use of local content at each stage of construction or manufacturing projects undertaken or funded (whether wholly or partially) by the State, including but not limited to project planning, design and execution;

S. 5(1)(ae) inserted by No. 31/2025 s. 22(1).

(ae)

promoting the use of standards published by or on behalf of Standards Australia in projects undertaken or funded (whether wholly or partially) by the State;

S. 5(1)(af) inserted by No. 31/2025 s. 22(1).

(af)

ensuring that the processes and mechanisms for tenders and procurements for projects undertaken or funded (whether wholly or partially) by the State are structured and designed to provide fair and reasonable opportunities for local industry participation;

(b)

providing contractors with increased access to, and raised awareness of, local industry capability;

(c)

exposing local industry to world's best practice in workplace innovation, e‑commerce and use of new technologies and materials;

(d)

developing local industry's international competitiveness and flexibility in responding to changing global markets by giving local industry a fair opportunity to compete against foreign suppliers.

S. 5(2) inserted by No. 31/2025 s. 22(2).

(2)

In this section—

Aboriginal business has the prescribed meaning (if any);

processes and mechanisms, in relation to a tender or procurement, includes (but is not limited to) the documents and specifications relating to the tender or procurement.

S. 6 (Heading) amended by No. 35/2018 s. 12(1).

S. 6 amended by Nos 35/2018 s. 12(2), 31/2025 s. 23 (ILA s. 39B(1)).

6Local Jobs First Policy principles

(1)

The Local Jobs First Policy is to take into account and be consistent with the following principles relating to procurement, tendering and the provision of financial assistance by the State—

(a)

value for money should be the primary consideration in purchasing and supply decisions;

(b)

tendering mechanisms and processes should be open, clear and accountable.

S. 6(2) inserted by No. 31/2025 s. 23.

(2)

In this section—

value for money has the same meaning as in—

(a)

in relation to procurement of or tendering for goods or services, the supply policy under section 54L of the Financial Management Act 1994 that applies with respect to the procurement or tender; or

(b)

in relation to procurement of or tendering for construction activities, the standard or direction under Part 4 of the Project Development and Construction Management Act 1994 that relates to the procurement or tender; or

(c)

if there is no meaning given to value for money by a supply policy or standard or direction described in paragraph (a) or (b) (as appropriate), any prescribed definition.

S. 7 (Heading) amended by No. 35/2018 s. 13(1).

S. 7 amended by No. 35/2018 s. 13(2).

7Local Jobs First Policy to be consistent with other requirements

The Local Jobs First Policy must be consistent with—

(a)

any supply policies under section 54L of the Financial Management Act 1994; and

(b)

any standards or directions under Part 4 of the Project Development and Construction Management Act 1994; and

(c)

the obligations of the State under any conventions, treaties or other international agreements to which Australia is a party.

S. 7A inserted by No. 35/2018 s. 14.

7APower to declare a project a standard project or a strategic project

(1)

The Minister may declare a project with a budget of less than $3 million to be a standard project.

(2)

The Minister may declare a project with a budget of less than $50 million to be a strategic project.

S. 7B inserted by No. 35/2018 s. 14.

Local Jobs First Act 2003

About this Act

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