A new era for Government Procurement in New Zealand
From 1 December 2025, New Zealand’s government procurement landscape is getting a major shake-up. With over $50 billion in government contracts up for grabs each year, the new 5th edition of the Government Procurement Rules is set to make it easier for Kiwi businesses—especially small and medium-sized enterprises (SMEs)—to win a bigger slice of the pie. So, what’s changing, and what do you need to know to get ahead?
Why the change?
The Government heard from more than 900 submitters during consultation. The message was clear: the old rules were too complex, too time-consuming, and didn’t do enough to support local businesses.
As Economic Growth Minister Nicola Willis put it, “We want to see taxpayer money supporting Kiwi businesses to grow, hire, and thrive.” The new rules are designed to do just that, while still upholding New Zealand’s international trade commitments and ensuring value for money for taxpayers.
The big headlines
Economic benefit to New Zealand test
The most significant change is the introduction of a new “economic benefit to New Zealand” test. For every procurement above $100,000 (goods, services, refurbishment) or $9 million (construction), agencies must now assess not just price and quality, but also the wider benefit to New Zealand.
At least 10% of the decision must be based on how much a proposal benefits the local economy. This means extra weight for:
- Using New Zealand businesses to deliver contracts
- Creating jobs for Kiwis
- Offering training and development to upskill local workers.
Of course, international suppliers are still welcome, but they’ll need to show how their proposals will create value here, not just offshore. This is a real opportunity for Kiwi firms to showcase their local credentials and community impact.
For contracts below the $100,000/$9 million thresholds, these are now expected to be awarded to capable local businesses (unless there is a good reason not to), making it easier for smaller players to get a foot in the door.
Simpler, fewer rules
The number of rules has been slashed from 71 to 47. The new rules are clearer, more accessible, and easier to navigate. In addition, the paperwork burden is lighter, and the process is less daunting for SMEs.
Transparency, integrity, and accountability
The new rules double down on transparency and accountability. Agencies must be able to give a complete and accurate account of their use of public funds and must treat all suppliers fairly. There are robust requirements for reporting, record-keeping, and supplier debriefs. If you miss out on a contract, you’re entitled to a debrief to help you improve next time.
Core principles remain
The six principles of government procurement still underpin everything: plan and manage for great results, be proportionate, be fair, get the right supplier, get the best deal for everyone, and play by the rules.
The Treaty of Waitangi/Te Tiriti o Waitangi obligations are also front and centre, ensuring procurement supports inclusive economic development and respects Māori interests.
What this means for your business
- Get ready to tell your story
You’ll need to clearly articulate how your business delivers economic benefits to New Zealand. Think jobs, training, local supply chains, innovation, and community impact. Don’t be shy; this is your chance to shine. - Brush up on the new Rules
The 5th edition is available on the New Zealand Government Procurement website. Take the time to understand the new requirements, especially around the economic benefit test and the simplified process. - Keep an eye on GETS
All government procurement opportunities are advertised on the Government Electronic Tenders Service (GETS). Make sure you’re registered and ready to respond. - Collaborate and subcontract
Even if you’re not bidding as a prime contractor, there are more opportunities to get involved as a subcontractor or in the supply chain. Agencies are encouraged to break up large contracts and look for local partners. - Expect more feedback
If you’re unsuccessful, consider asking for a debrief. Use the feedback to strengthen your next bid.
Final thoughts
The new Government Procurement Rules are a genuine reboot for Kiwi businesses. They’re about levelling the playing field, cutting red tape, and making sure taxpayer dollars work harder for New Zealand. Whether you’re a seasoned government supplier or just starting out, now’s the time to get familiar with the new landscape and put your best foot forward.
For more information, check out the official Government Procurement Rules and keep an eye on GETS for upcoming opportunities.
If you would like to discuss any of the above, please get in touch with Peter Fernando or Chris Thomas.
Disclaimer: The content of this article is general in nature and not intended as a substitute for specific professional advice on any matter and should not be relied upon for that purpose.
