The Northern Territory Government Procurement Reform Program has been designed to reduce red tape and eliminate unnecessary administrative burdens for both businesses and government. 

The changes modernise procurement practices and foster a more business-friendly environment in the NT. 

The reforms, which have been developed through comprehensive internal and external stakeholder engagement, will strengthen local business participation, deepen partnerships to support capacity building and drive economic uplift. 

Changes include an increase to purchasing tiers 1 and 2. 

• tier 1 increases to $50,000 from $15,000 
• tier 2 increases to $200,000 from $100,000 

Increasing the purchasing cap for tiers 1 and 2 will enable greater flexibility and reduce red tape burdens for Territory businesses and government contract managers. 

Under tier 1 and 2, direct purchasing from a Territory business will become much simpler for low-risk, readily available and commonly used goods or services. 

The simplified procurement rules for purchasing low-risk supplies removes administrative hurdles, reduces delays and enhances efficiency. For example, this includes things such as milk or standardised training courses. 

There is now greater flexibility for agencies to identify strategies that enable and promote Aboriginal participation throughout the lifecycle of the contract. Government procurement remains merit-based. 

Agencies must also give industry greater notice for high-value tender opportunities, tiers 4 and 5. This change will provide greater opportunities for businesses and industry to tender for high-value contracts. 

A new Territory Procurement Champion position will be established to support local businesses to grow. This position replaces the Buy Local Industry Advocate role which came to a natural end on 30 June 2025. 

The Territory Procurement Champion will be responsible for handling procurement complaints at an arm’s length and engaging businesses and government to drive more local procurement outcomes. 

To find out more about the Northern Territory Government Procurement Reform Program, visit 

nt.gov.au/procurement 

PROCUREMENT REFORMS SNAPSHOT 

Tier 1 and 2 cap increases 

Tier 1 — up to $50,000 (was $15,000) 

Tier 2 — $50,000–$200,000 (was $15,000–$100,000) 

Simplified direct purchasing – tiers 1 & 2 

Direct purchasing can be used for low-risk, readily available, and commonly used supplies. This enables government to buy directly from Territory businesses without a formal quote process, and without the need for businesses to respond to assessment criteria or weightings. Examples include purchase of milk off the shelf or a standard training course. 

Territory Procurement Champion 

The Territory Procurement Champion replaces the Buy Local Industry Advocate and is responsible for the handling of complaints and engaging with businesses and government to drive more local procurement. 

Local content and Aboriginal participation 

Greater flexibility for agencies to identify strategies that enable and promote Aboriginal participation and employment throughout the lifecycle of the contract noting NT Government procurement remains merit‑based. 

Future Tender Opportunities 

When Future Tender Opportunities are not advertised, agencies must keep their tender “at market” for at least: 

• six weeks for a tier 4 procurement activity ($500,000 to $5 million) 
• eight weeks for a tier 5 procurement activity ($5 million and above)