Social Procurement in Australia: The 2026 Buyer's Guide
Social procurement means using spend you were already committing to create social value, usually by directing it to certified social enterprises, Aboriginal and Torres Strait Islander businesses, or Australian Disability Enterprises. Australia governs it jurisdiction by jurisdiction, not nationally. Thresholds, evaluation weightings and reporting duties differ in every state. This guide sets them side by side.
By Ash Dorman, Head of Growth at Bloom Cycle. Bloom Cycle is a Social Traders certified social enterprise that supplies Queensland Government agencies, so I read these policies because I have to.
The numbers a procurement officer needs first
- $304 million was spent with certified social enterprises in FY25, a record single-year total, up 18% on FY24 (Social Traders, 18 May 2026).
- $1.4 billion cumulative certified spend across FY18 to FY25, growing at 35% average annual growth in that certified spend, from 151 business and government members (Social Traders, 18 May 2026). Note that this is a spend growth rate, not a count of enterprises.
- 13,383 employment outcomes and 1,000,000 training hours over those eight years (Social Traders, 18 May 2026).
- Over 750 certified social enterprises as at July 2026, per Social Traders' For Government page. The FY25 spend figures above were reported across the 735 enterprises certified at the time of that reporting, which is why both numbers appear in the sector's own material.
- 12,033 social enterprises operate in Australia, contributing $21.3 billion (1% of GDP) and employing over 206,000 people, or 1 in 60 Australian jobs (Social Enterprise Australia, Business for Good, 2022).
- 5 to 10% is the evaluation weighting Victoria's Social Procurement Framework applies to the social and sustainable criterion in its proportionate band (buyingfor.vic.gov.au).
- 10 to 20% is the maximum weighting Queensland's purposeful public procurement criterion carries of a total evaluation (business.qld.gov.au, updated 2 Jan 2026).
One thing to say plainly before the detail. There is no public, vendor-neutral Australian buyer's guide to this. Buy Social Canada publishes a free Guide to Social Procurement. Social Enterprise UK runs Buy Social programmes with buyer-facing guidance. Australia's equivalent material is split across nine jurisdictions, much of it inside PDFs written for internal staff. This page exists to close that gap.
What is social procurement in Australia?
Social procurement is the deliberate use of procurement to generate social, economic or environmental benefit alongside the goods or services being bought. South Australia's own guideline puts the supplier side of it well: social enterprises are "organisations led by an economic, social, cultural, or environmental purpose consistent with a public or community benefit" that "reinvest the majority of any profit or surplus into the fulfilment of their purpose" (Economic and Social Procurement Guideline, effective 20 February 2023).
In practice, social procurement in Australia works through three levers. Buyers direct spend to a diverse supplier. Buyers write social value into evaluation criteria so it is scored. Buyers write social obligations into contract terms so they are delivered and reported.
What social procurement is not
Social procurement is not sponsorship, donation or grant-making. It is commercial spend on goods and services you needed anyway, placed with a supplier whose business model produces a social outcome. That distinction matters for your accounting and for your reporting line.
Social procurement is also not a value-for-money exemption. Every jurisdiction reviewed for this guide keeps value for money intact. New South Wales says it directly about disability enterprises: agencies may buy via a single written quote, but "value for money must still be achieved" (buy.nsw / procurepoint).
Which social procurement policy applies to me? A state-by-state comparison
Every row below was checked against the primary government source on 30 July 2026. Where no target is published, the table says so rather than guessing.
| Jurisdiction | Governing policy (current version) | Published social enterprise target? | Thresholds that change your obligations | Evaluation weighting | Who it binds |
|---|---|---|---|---|---|
| Victoria | Social Procurement Framework, August 2025 version; first published 1 April 2018 | No sector-wide social enterprise spend target found as at July 2026. Targets are required only inside the strategic band above $50M | Regional: under $1M encouraged · $1–20M proportionate · $20–50M targeted plus a Social Procurement Plan · over $50M strategic plus a Plan. Metro or state-wide: under $3M encouraged · $3–20M proportionate · $20–50M targeted plus a Plan · over $50M strategic plus a Plan | 5 to 10% weighting on the social and sustainable evaluation criterion in the proportionate band | Departments and agencies subject to the Standing Directions 2018 under the Financial Management Act 1994. Other public bodies encouraged, not required |
| Queensland | Queensland Procurement Policy 2026, in effect 1 January 2026 | No social-enterprise-specific target found. A 30% SME target and at least 3% of annual procurement spend with Indigenous businesses are published (Queensland Government statement, 11 November 2025) | Significant procurement: agency thresholds "cannot be lower than $500,000 including GST". For every quote or tender, buyers "must invite at least one local supplier, small and family business, or Queensland regional business" unless impractical and documented | Purposeful public procurement criterion carries "a maximum weighting of between 10% and 20% of the total evaluation", with "each selected outcome a weighting of between 5% and 10%" | Queensland Government agencies, against roughly $35 billion of annual spend |
| New South Wales | SME and Regional Procurement Policy, applied to goods and services from 1 July 2021; plus PBD-2023-03 | No social enterprise target found. NSW reported $34 million spent with social enterprises in 2021–22 (NSW Government media release, 19 July 2023) | Direct engagement: SMEs to $250,000 (PBD-2023-03) · regional suppliers to $150,000 · Aboriginal businesses to $250,000 · disability employment organisations at any value via a single written quote. "SME first" consideration up to $3M. Participation plan required at $3M+ | Contracts $3M or more: minimum 10% of non-price criteria for SME participation and 10% for sustainability, economic, ethical, environmental and social priorities | NSW Government agencies, all goods and services excluding construction, under the Public Works and Procurement Act 1912. Mandatory |
| South Australia | Economic and Social Procurement Guideline, effective 20 February 2023 | No target. The guideline lists "social benefit supplier expenditure targets (e.g., by percentage or amount)" as something authorities can consider, and mandates none | None specified in the guideline. The SA Industry Participation Policy separately requires apprentices, trainees, Aboriginal workers and long-term unemployed to deliver 20% of all labour hours on certain procurements | None specified in the guideline | "Public authorities" |
| Western Australia | WA Social Procurement Framework, July 2025, Version 4; first released October 2022 | No target. The framework states "it is not expected that every procurement will focus on all the community objectives listed" | Priority Start Policy applies to government building, construction, civil and maintenance contracts over $5 million including GST (in effect 1 April 2019) | None specified in the framework | All State agency procurement subject to the Western Australian Procurement Rules |
| Tasmania | Buy Local Policy, Version 10, April 2026, embedded in Treasurer's Instruction PF-2. No dedicated social enterprise policy found | No social enterprise target found. Social enterprises are not mentioned in the Buy Local Policy | Economic and Social Benefits Test required "for all RFTs and RFQs valued at $100 000 or more" | ESBT "weighted at 30 per cent of the overall evaluation criteria" for open RFTs, and for RFQs including non-Tasmanian businesses at $100,000+ | All Tasmanian Government agencies required to comply with the Treasurer's Instructions |
| ACT | Government Procurement Rules 2024, instrument dated 28 August 2024 | No target. Rule 10.6(d) does name social enterprises as a supplier diversity option, defined as having a "defined primary social, cultural or environmental purpose" and "certified by Social Traders or any other certifying body" | Quotation and tender thresholds sit in the Government Procurement Regulation 2007, not the Rules. Rule 15.1 sets a $25,000 reporting threshold | No weighting prescribed in the Rules. Social enterprise engagement is framed as one way to achieve the Diversity, Equality and Inclusion procurement value (Procurement ACT) | ACT Government buyers under the Government Procurement Rules 2024 |
| Northern Territory | Buy Local Plan; Aboriginal Procurement Policy from 1 July 2022 | No social enterprise target found. The Aboriginal Procurement Policy does accept social enterprises as eligible Aboriginal Business Enterprise structures | Aboriginal Procurement Policy applies to contracts $15,000 or more. From 1 January 2024 only certified ABEs are recognised, at 51% or more Aboriginal ownership | Not published. "Agencies must consider local benefit when assessing offers" | NT Government agencies |
| Federal | Commonwealth Procurement Rules, in effect 17 November 2025; Indigenous Procurement Policy, July 2025 | No social enterprise target. IPP volume target 3% of contracts; IPP value target rising 0.25 percentage points a year to 3% on 1 July 2027. SME targets: 25% of contracts by value up to $1bn (CPR para 5.7) and 40% by value up to $20M (para 5.8) | Appendix A exemption 17: direct engagement of an SME for procurements up to $500,000 · exemption 15: goods and services from a business that primarily exists to provide the services of persons with a disability · exemption 16: an SME meeting the IPP Indigenous Enterprise definition. IPP Mandatory Set Aside applies $80,000–$200,000 and in remote areas. Broader economic benefit must be considered above $1M ($7.5M construction) under para 4.7 | No weighting prescribed | Non-corporate Commonwealth entities subject to the CPRs. Others encouraged |
Three readings worth taking from that table. Only Victoria and Queensland publish a numeric evaluation weighting for social value as a matter of course. Tasmania's 30% Economic and Social Benefits Test is the highest single weighting in the country, but it is a local-benefit test that does not mention social enterprises. And no Australian jurisdiction publishes a social-enterprise-specific spend target — the targets that exist are for SMEs, Indigenous businesses and local content.
What counts as a social enterprise for procurement purposes?
Three separate supplier pathways get bundled together as "social procurement" and they are not interchangeable. They have different definitions, different verification bodies and different direct-engagement rules.
| Pathway | Definition test | Who verifies it | Where a buyer checks | Direct-engagement rule |
|---|---|---|---|---|
| Social enterprise | Primary social, cultural or environmental purpose; substantial trading income; majority of surplus reinvested to purpose | Social Traders (certification) and People & Planet First (verification) | Social Enterprise Finder; People & Planet First Verified Directory | No dedicated exemption federally. Reached via the SME exemption or SME direct-engagement thresholds |
| Aboriginal and Torres Strait Islander business | 50% or more Indigenous owned (NT requires 51%) | Supply Nation; Kinaway in Victoria; state registers | supplynation.org.au; Kinaway Business Directory | Federal CPR Appendix A exemption 16; IPP Mandatory Set Aside $80,000–$200,000; NSW direct to $250,000 |
| Australian Disability Enterprise | A business that primarily exists to provide the services of persons with a disability; ADEs in the BuyAbility network hold or have held a DSS Disability Employment Assistance Funding Agreement | Department of Social Services funding agreement; BuyAbility network membership via National Disability Services | BuyAbility directory | Federal CPR Appendix A exemption 15 at any value; NSW single written quote at any value |
An organisation can sit in more than one pathway. A social enterprise can also be an Indigenous business. Check which pathway you are claiming against before you write it into a report, because the exemption you rely on and the evidence you file are different in each case.
How do I verify a supplier is genuinely a certified social enterprise?
Ask for the certification, then check it against the certifier's own record. Do not accept a website claim.
Social Traders certification is assessed against three criteria published in its Guidance Notes and Standards: a defined primary social, cultural or environmental purpose consistent with a public or community benefit; trading income of "approximately 50% or more" for ventures established five years or longer, or approximately 25% or more at two to five years; and a benefit distribution test requiring total direct social costs equivalent to at least 50% of prior-year net profits after tax. Verification includes an ABN and ACN check, financial document review and a solvency assessment. Recertification is annual under two years of trading and every three years after that.
That three-year cycle is the reason to check the register rather than the logo. Certification can also be suspended or terminated, at which point the enterprise "must immediately cease to represent yourself as a certified social enterprise" (Social Traders certified social enterprise terms and conditions). A logo on a PDF from 2023 is not evidence of current status. The full procedure is in how to verify a social enterprise is genuinely certified.
Can I direct-source from a social enterprise without going to market?
Often, yes, but the authority comes from an SME or diversity provision rather than from a social enterprise provision. Here is what each jurisdiction actually permits.
| Jurisdiction | Direct or limited engagement available | Value ceiling | Source |
|---|---|---|---|
| Federal | Direct engagement of an SME (Appendix A exemption 17) | Up to $500,000, GST inclusive | Department of Finance, CPR Appendix A |
| Federal | Business primarily providing the services of persons with a disability (exemption 15) | No stated ceiling | CPRs, 17 November 2025 |
| NSW | Direct negotiation with a small or medium business (PBD-2023-03) | Up to $250,000 | buy.nsw |
| NSW | Direct negotiation with a regional supplier | Up to $150,000 | SME and Regional Procurement Policy |
| NSW | Single written quote to an approved ADE | Any value | procurepoint / buy.nsw |
| Queensland | Agency thresholds for significant procurement cannot be set below $500,000 including GST, which sets where full competitive process obligations bite | $500,000 incl GST | business.qld.gov.au |
| Victoria | No social enterprise direct-source exemption found in the Social Procurement Framework. Under $3M metro or $1M regional, buyers are "encouraged" to seek social enterprise opportunities within normal quote thresholds | Not published | buyingfor.vic.gov.au |
Two practical notes. Federally, the IPP Mandatory Set Aside must be satisfied before the SME exemption is applied, so Indigenous businesses get first opportunity in the $80,000 to $200,000 band. And an exemption removes a process requirement, not the value-for-money test — you still document why the price and the supplier stack up.
What weighting should I give social value in evaluation?
If your own policy sets a number, use it. If it does not, the published Australian precedents give you a defensible range to argue from.
| Precedent | Weighting | Applies to |
|---|---|---|
| Victoria, proportionate band | 5–10% of evaluation criteria | Regional $1–20M; metro or state-wide $3–20M |
| Queensland, purposeful public procurement | 10–20% maximum of total evaluation, each selected outcome 5–10% | Queensland Government procurement |
| NSW, contracts $3M+ | 10% SME participation plus 10% sustainability and social priorities, within non-price criteria | Goods and services excluding construction |
| Tasmania, Economic and Social Benefits Test | 30% of overall evaluation criteria | RFTs and qualifying RFQs at $100,000+ |
For low-value purchases, do not build a weighted matrix at all. Victoria's own guidance says weighted criteria may not be necessary for lower-value procurements. Under a direct-engagement threshold, the faster route is to shortlist certified suppliers and run a normal quote comparison among them.
What clauses should go in the tender?
Four things, and keep each of them measurable.
- A definition clause. State which pathways qualify and which certifier you will accept. The ACT's Rule 10.6(d) wording is a usable model: a defined primary social, cultural or environmental purpose, certified by Social Traders or another certifying body.
- An evidence clause. Require the certification number or register listing at tender, and a warranty that the supplier will notify you if status changes during the contract.
- A scored criterion. Name the outcomes you are scoring and the weighting, at the level your policy sets. Vague "social value" criteria produce vague responses you cannot compare.
- A reporting clause. Specify what the supplier reports, in what format and how often. Victorian buyers report at contract level on things like employment and training opportunities for priority jobseekers, so ask for the underlying data rather than a narrative.
How do I record and report social procurement spend?
Record four fields per transaction: supplier name and ABN, the pathway claimed, the certifier and certification reference, and the value excluding GST. That is the minimum set that survives an audit.
Victoria shows what the reporting actually looks like. Departments and agencies subject to the Standing Directions 2018 "are required to report on their social procurement activities in their annual reports", aggregating "the number of social enterprises, Australian Disability Enterprises and Aboriginal businesses engaged and total spend" (buyingfor.vic.gov.au). Contract-level measurement sits underneath that, covering supplier performance on employment and training outcomes.
Social Traders' member portal will also generate spend and impact reports from uploaded data, including employment hours, waste diverted and community goods delivered. That is a useful cross-check on your own numbers, though it only covers certified suppliers.
Where do I find certified social enterprises?
Start with the certifier directories, then the state registers. Victoria's own guidance for buyers points to the Social Enterprise Finder and Social Traders buyer portal for social enterprises, Kinaway and Supply Nation for Aboriginal businesses, and the BuyAbility directory for Australian Disability Enterprises. The step-by-step version, including what to ask in an RFQ and how to handle small-supplier capacity, is in how to buy from a social enterprise in Australia.
If Queensland is your jurisdiction, social procurement in Queensland covers the Queensland Procurement Policy 2026 in detail. If you are looking for a category to start in, meeting a social procurement target with awards and gifts explains why recognition spend is usually the easiest first move — the budget already exists, the risk is low, and the reporting line is clean.
Frequently asked questions
What is social procurement in Australia?
Social procurement in Australia is the use of ordinary purchasing to generate social, economic or environmental benefit, most commonly by directing spend to certified social enterprises, Aboriginal and Torres Strait Islander businesses or Australian Disability Enterprises. It is governed jurisdiction by jurisdiction. Victoria, Queensland, Western Australia and the Commonwealth each publish different thresholds, weightings and reporting requirements.
Does Australia have a national social procurement target?
No. As at July 2026, no Australian jurisdiction publishes a social-enterprise-specific spend target. The Commonwealth publishes Indigenous Procurement Policy targets of 3% of contracts by number, and SME targets of 25% of contract value up to $1 billion and 40% up to $20 million. Queensland publishes a 30% SME target and at least 3% of annual procurement spend with Indigenous businesses.
How much weighting should social value get in a tender evaluation?
Between 5% and 30%, depending on your jurisdiction and contract value. Victoria applies 5 to 10% in its proportionate band. Queensland's purposeful procurement criterion carries a maximum of 10 to 20% of the total evaluation. New South Wales requires 10% for SME participation plus 10% for social and sustainability priorities on contracts of $3 million or more. Tasmania's Economic and Social Benefits Test is weighted at 30%.
Can I buy from a social enterprise without running a tender?
Usually yes, under an SME or diversity provision rather than a social enterprise provision. The Commonwealth Procurement Rules allow direct engagement of an SME for procurements up to $500,000 under Appendix A exemption 17, subject to Indigenous Procurement Policy set-aside requirements first. NSW permits direct negotiation with a small or medium business up to $250,000. Value for money still has to be demonstrated.
How do I check that a social enterprise is genuinely certified?
Ask for the certifier and the certification reference, then check it against that certifier's own directory rather than the supplier's website. Social Traders lists certified social enterprises on the Social Enterprise Finder, and People & Planet First publishes a verified directory. Certification can be suspended or terminated, so confirm current status rather than accepting a logo or an older certificate.
Does buying awards or gifts count toward a social procurement target?
Yes, where the supplier holds a recognised certification and the spend is recorded against the right pathway. Awards, trophies, plaques, engraved certificates and conference pieces are ordinary goods spend, which makes them one of the simplest categories to redirect without changing an approval process. Record the supplier ABN, certifier, certification reference and value excluding GST.