Social procurement – Relevant Government policy, legislation and initiatives

Find out which policies, legislation and initiatives are relevant to the Social Procurement Framework.

Local Jobs First – Victorian Industry Participation Policy 

The Local Jobs First – Victorian Industry Participation Policy is governed by the Victorian Industry Participation Act 2003, the main objectives of which are to: 

  • promote employment and business growth by expanding market opportunities for local industry; 
  • provide contractors with increased access to, and raised awareness of, local industry capability; 
  • expose local industry to world’s best practice in workplace innovation, e-commerce and use of new technologies and materials; and 
  • develop 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. 

The Victorian Industry Participation Policy requires Government departments and agencies to consider competitive local suppliers, including small and medium enterprises, when awarding contracts valued at: 

  • $1 million or more in regional Victoria; or 
  • $3 million or more in metropolitan Melbourne or for State-wide activities. 

The Victorian Industry Participation Policy focuses particular attention on strategic projects valued at $50 million or more, with contractors required to deliver Local Industry Development Plans and commit to delivering local content and job outcomes. 

Local Jobs First - Major Projects Skills Guarantee 

The Local Jobs First - Major Projects Skills Guarantee provides opportunities for Victorian apprentices, trainees, and engineering cadets to work on some of Victoria’s biggest building and construction, infrastructure, and civil engineering projects. It is designed to ensure that young Victorians in particular benefit directly from the major infrastructure projects being undertaken in Victoria. 

The Major Projects Skills Guarantee requires all publicly funded building, construction, infrastructure, civil engineering, or other capital works over $20 million to use local apprentices, trainees, or engineering cadets for at least 10 per cent of the total estimated labour hours. 

The Value Creation and Capture Framework 

The Value Creation and Capture Framework is designed to encourage Government sponsors and delivery partners for capital investments, projects to develop public land, and precinct projects, to consider broader opportunities to enhance public value.  

Jobs Victoria 

Jobs Victoria, established in May 2016, provides targeted support services to job seekers at risk of being left behind, through: 

Tharamba Bugheen – Victorian Aboriginal Business Strategy 

Tharamba Bugheen supports Aboriginal businesses to grow, extend networks and build upon entrepreneurial skills within communities. Fully participating in the economy provides Aboriginal Victorians with the resources they need to determine their own future. Economic participation is critical to self-determination. 

Victorian Aboriginal Economic Board 

The Victorian Aboriginal Economic Board was established in June 2016 and is a key commitment under the Victorian Economic Strategy. The Board’s role is to champion economic development initiatives, advise the Minister for Aboriginal Affairs on projects to be delivered, and identify any barriers to Aboriginal economic development. The Board will also provide advice on the implementation of Tharamba Bugheen. 

A key priority for the Board is to improve Aboriginal procurement opportunities. In 2017, the Board hosted an Aboriginal procurement event series to identify procurement barriers and develop practical solutions to support the growth of Aboriginal businesses. These events highlighted the Government’s commitment to procure from Aboriginal businesses, and encouraged the private sector to do the same. 

Victorian Government Purchasing Board 

The Victorian Government Purchasing Board has a supply policy that recognises procurement as a core business function. The framework uses a complexity and risk-based model to inform the approach to market. The framework covers the whole procurement lifecycle and is underpinned by high levels of probity, accountability, and flexibility with a strong focus on value for money, more interactive engagement with the market and productivity improvement. 

All Victorian Government organisations subject to Victorian Government Purchasing Board policies must operate under the Victorian Government Purchasing Board policy framework for non-construction goods and services. This includes contractor adherence to the Supplier Code of Conduct

Victorian Social Enterprise Strategy 

The Victorian Social Enterprise Strategy advocates for greater coordination across government to support social enterprises. The strategy is the first of its kind in Australia, and includes eight initiatives across three action areas to support the growth of the social enterprise sector and inclusive economic growth across Victoria. The action areas are: 

  • increasing impact and innovation; 
  • building business capacity and skills; and 
  • improving market access. 

Victorian Small Business Commission 

The Victorian Small Business Commission promotes a fair and competitive environment for Victorian small business to operate, grow, and prosper. The Commission’s support extends to social enterprises and Aboriginal businesses, including programs and training to help win business.  

Absolutely everyone: state disability plan 2017-2020 

Every opportunity: Victorian economic participation plan for people with disability 2018-2020

The state disability plan tackles the negative attitudes and barriers that more than one million Victorians with disability deal with on a daily basis. 

In response to the plan’s key priorities, Every opportunity: Victorian economic participation plan for people with disability 2018-2020 was launched in February 2018. 

Every opportunity outlines 21 actions to improve work, study and business opportunities for Victorians with disability, and to maximise the benefits of the National Disability Insurance Scheme.  

Every opportunity will drive positive change across the economy by activating two major stakeholders – government itself (as a major employer and purchaser of goods and services) and the broader Victorian business community. 

Safe and Strong: Victoria’s Gender Equality Strategy 

Safe and Strong: Victoria’s Gender Equality Strategy sets out a framework for enduring and sustained action over time. It aims to progressively build the attitudinal and behavioural change required to reduce violence against women and deliver gender equality. 

The progressive introduction of gender ethical procurement policies is a founding reform within Safe and Strong. Policies in relation to contracted organisations, suppliers and funded agencies, to encourage and promote commitments to family leave, work towards gender equality in their own workplaces and (where relevant and appropriate) to reflect gender equality considerations in procurement contracts. 

Climate Change Act 2017 

The Climate Change Act 2017 (Vic) provides Victoria with a world-leading legislative foundation to manage climate change risks, maximise the opportunities that arise from decisive action, and drive our transition to a climate resilient community and economy with net zero emissions by 2050. It gives effect to the majority of the commitments set out in the Victorian Government Response to the 2015 Independent Review of the Climate Change Act 2010 (Vic).  

2017 ISO: 20400 Sustainable Procurement Standard 

The 2017 ISO: 20400 Sustainable Procurement Standard creates a global framework to stimulate the integration of social, economic, and environmental objectives into strategic procurement practice. Building on progress to date for environmental sustainability and climate change, the Standard paves the way for further development work by the Victorian Government. 

Infrastructure Sustainability Council of Australia Rating Scheme 

The Infrastructure Sustainability Council of Australia provides a comprehensive rating system for evaluating sustainability across design, construction, and operation of infrastructure. The Infrastructure Sustainability Council of Australia evaluates the sustainability (including environmental, social, economic and governance aspects) of infrastructure projects and assets. An update to this scheme is planned at the time of the development of Victoria’s Social Procurement Framework. 

Tools and support 

This content on this page is taken from Victoria’s Social Procurement Framework. Access a PDF version in the social procurement document library

For more information about social procurement, please contact the Social Procurement team