From 1 December, government buying will tilt toward Kiwi firms.

A new economic benefit test and a shorter rulebook aim to make tenders clearer and easier to navigate, Economic Growth Minister Nicola Willis says.

Cabinet has approved the 5th edition of the Government Procurement Rules after more than 900 submissions.

“Businesses shared that the lack of weighting for New Zealand’s interests in the evaluation criteria was holding them back,” Willis says.

“That’s why we’re introducing a new economic benefit to New Zealand test that will apply to every procurement to ensure we are creating value and jobs for Kiwis. We want to see taxpayer money supporting Kiwi businesses to grow, hire, and thrive.”

At least 10% of each decision must now weigh wider benefit to New Zealand, alongside price and quality.

Agencies can give extra credit for proposals that:

• Use New Zealand businesses to deliver contracts
• Create jobs
• Offer training and development to upskill New Zealand workers

The rules drop from 71 to 47.

The goal is less paperwork and quicker bids, especially for small and medium firms.

Coverage remains broad. Goods, services, and refurbishment over $100,000 are in scope. Construction over $9m is included.

Contracts below these thresholds are expected to go to capable local businesses.

Government contracts total more than $50b a year.

The changes are designed to help Kiwi suppliers win more of that work, either directly or as subcontractors.

International bidders will be expected to show how they create value here.

Officials say the settings still meet trade obligations, so New Zealand firms can keep accessing large overseas markets.

Opportunities will continue to appear on the Government Electronic Tenders Service, and the full 5th-edition rules are on the New Zealand Government Procurement website.

Know something local worth sharing?

Send it to [email protected] — we’ll help spread the word.