Australia: Upstream linkages—Fostering local procurement through regulation and local incentives

Australia employs a balanced approach to local procurement, combining national regulatory frameworks like the Australian Industry Participation (AIP) National Framework with state-level policies and Indigenous Land Use Agreements (ILUAs). Key demand-side measures include requiring AIP plans for projects exceeding AUD 500 million, while supply-side support is provided through the Supplier Access to Major Projects (SAMP) program and the ICN Gateway database. The country also aligns its education system with the needs of the Mining Equipment, Technology and Services (METS) sector and has previously used tax incentives like the Enhanced Project By-Law Scheme to reward firms implementing AIP plans.

• The Australian Jobs Act 2013 mandates that any project with capital expenditure exceeding AUD 500 million must develop an Australian Industry Participation (AIP) plan to ensure Australian entities have a "full, fair and reasonable opportunity to bid" for key goods and services.
• Indigenous Land Use Agreements (ILUAs) are voluntary, binding agreements that can include region-specific definitions of "local" and preferential treatment for local suppliers, though their effectiveness depends on the community's capacity to negotiate.
• The Supplier Access to Major Projects (SAMP) program, which provided over AUD 18.5 million in funding, is estimated to have supported 162 projects and helped Australian firms secure more than AUD 4 billion in contracts.
• The ICN Gateway serves as a national database that connects project owners and suppliers by listing opportunities and providing company profiles to help "build the right procurement partnerships."
• Between 2002 and 2016, the federal government operated the Enhanced Project By-Law Scheme (EPBS), which provided duty-free tariff concessions to firms that successfully implemented their AIP plans for goods unavailable in Australia.

APA

Nickerson, E., & Geipel, J. (2018). Australia: Upstream linkages—Fostering local procurement through regulation and local incentives. International Institute for Sustainable Development. https://www.iisd.org/sites/default/files/publications/case-study-australia-upstream-linkages.pdf

Chicago

Nickerson, Emily, and Jeff Geipel. Australia: Upstream linkages—Fostering local procurement through regulation and local incentives. International Institute for Sustainable Development, 2018. https://www.iisd.org/sites/default/files/publications/case-study-australia-upstream-linkages.pdf.

Wikipedia

{{cite report |last1=Nickerson |first1=Emily |last2=Geipel |first2=Jeff |title=Australia: Upstream linkages—Fostering local procurement through regulation and local incentives |publisher=International Institute for Sustainable Development |date=2018 |url=https://www.iisd.org/sites/default/files/publications/case-study-australia-upstream-linkages.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{nickerson2018australia, author = {Nickerson, Emily and Geipel, Jeff}, title = {{Australia: Upstream linkages—Fostering local procurement through regulation and local incentives}}, institution = {International Institute for Sustainable Development}, year = {2018}, url = {https://www.iisd.org/sites/default/files/publications/case-study-australia-upstream-linkages.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }