The state government has announced changes to its tender procurement process, placing more emphasis on endorsing businesses that support local employment.
The Local Benefits Test and Local SME Industry Impact Statement stages of the tender process will now be combined into the Economic and Social Benefits Test.
This stage will equate to 25 per cent of the tender process, and places emphasis on suppliers that use and support local employment and goods, according to Finance Minister Michael Ferguson.
"A business will be more likely to get a government tender if they're already employing Tasmanian people, young apprentices, investing in training and their local sports clubs," he said.
Mr Ferguson said he hoped the change to the tender process would also encourage businesses that hadn't competed in the past for tenders to do so based on the new stage.
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He added that the government would be prepared to pay a little more for Tasmanian tenders if it helped the local community.
Tasmanian Chamber of Commerce and Industry chief executive Michael Bailey said the changes were nation-leading.
"What this new change brings is more focus on Tasmanian businesses in local areas and supports businesses that invest in their communities and invest in local people," he said.
"The reflection on the support local businesses have in their local communities in things like sporting sponsorships and employing local people will now be taken into account when these tenders are flowing through government."
What this new change brings is more focus on Tasmanian businesses in local areas and supports businesses that invest in their communities and invest in local peopleMichael Bailey
The new tender stage will be evaluated in two years.
Another change will be the increase of the low value procurement threshold for tenders from $50,000 to $100,000.
"This means that Tasmanian government agencies will be able to directly purchase from the local community goods and services up to $100,000 without having to go to a formal tender process," Mr Ferguson said.
Mr Bailey said Tasmanian businesses have the resources to compete for tenders, especially if contracts are broken into smaller pieces.
"Obviously, there are some projects that are absolutely massive and we need international support to achieve ... it's going to take some time to get that right, but there's a great deal of effort taking place across the state right now to line up training with these types of opportunities," he said.