NZ Simplifies Procurement Rules to Boost Local Business Opportunities

The 5th edition of the Government Procurement Rules can be accessed through the New Zealand Government Procurement website.

New Zealand businesses are set to gain greater access to government contracts under the country’s newly revised Government Procurement Rules, which will take effect on 1 December 2025. Economic Growth Minister Nicola Willis announced that these changes aim to ensure taxpayer money supports local enterprises, fuels job creation, and enhances domestic economic growth.

The updated rules follow an extensive consultation process earlier this year, during which the government received over 900 submissions from business owners, industry groups, and procurement experts. Many businesses expressed frustration over the absence of a clear mechanism prioritising New Zealand’s economic interests in the government’s evaluation process. In response, the government has introduced a new “Economic Benefit to New Zealand” test that will apply to all procurements.

Supporting Kiwi Businesses

Minister Willis emphasised that this test will be central to every procurement decision, ensuring that public spending contributes to creating value, jobs, and growth for Kiwis. The test will also encourage international companies bidding for government contracts to demonstrate tangible contributions to New Zealand’s economy, such as through local hiring, supply chain participation, or technology transfer.

“Government contracts are collectively worth more than $50 billion a year,” Willis noted. “We want more of that to go towards growing New Zealand businesses, helping them to expand, innovate, and hire more workers.”

Simplifying the Process for SMEs

A key complaint raised by small and medium-sized enterprises (SMEs) during consultations was the complexity and paperwork involved in applying for contracts. The government responded by reducing the number of procurement rules from 71 to 47, making them more accessible, straightforward, and time-efficient.

“We’ve listened to what small businesses told us—they were spending too much time on bureaucracy and not enough on competing,” Willis said. “The simpler structure will make it easier for SMEs to understand, follow, and benefit from government procurement opportunities.”

New Thresholds and Local Priorities

The revised procurement thresholds specify that the new rules will apply to goods, services, and refurbishment contracts worth over NZD 100,000, and construction contracts exceeding NZD 9 million. Contracts below these thresholds are expected to be awarded preferentially to capable local businesses, reinforcing the government’s “Buy New Zealand” approach.

The government also reassured international partners that New Zealand’s procurement framework will continue to honour international trade commitments, ensuring reciprocal access to overseas markets.

Accessible Resources for Businesses

The 5th edition of the Government Procurement Rules can be accessed through the New Zealand Government Procurement website. Businesses seeking new opportunities can browse upcoming tenders on the Government Electronic Tenders Service (GETS) platform, which lists all active government procurement opportunities across the country.

Strengthening the Local Economy

With these reforms, the government seeks to balance fair competition with national interest, ensuring that procurement not only delivers value for money but also strengthens New Zealand’s economic resilience.

“These changes not only help level the playing field but also ensure that taxpayer money is spent responsibly and efficiently,” Willis said. “By supporting local businesses, we are also investing in stronger communities, higher employment, and a more self-reliant economy.”