Throughout 2025 the Planning and Environment Court delivered a series of decisions that will influence the approach of developers, consultants and local governments in the year ahead. The judgments cover a wide range of issues from minor change assessments to infrastructure charging, subdivision proposals, environmental constraints, childcare centres and coastal apartment development. The consistent theme across these decisions is a careful reinforcement of statutory requirements and a strong emphasis on planning scheme intent, good design, environmental protection and justified decision making.

Minor changes and the importance of external built form

In the decision concerning SVMJ 1234 Pty Ltd v Moreton Bay Regional Council [2025] QPEC 7 (31 March 2025) the Court rejected an attempt to categorise a series of design amendments as a minor change. Although the changes reduced the number of tenancies and the total gross floor area and improved some functional outcomes, the Court found that the revised design materially altered the building’s presentation to the street. The new arrangement changed the scale, architectural expression and character of the development. As a result the proposal was not considered a minor change. The decision confirms that reductions in floor area or tenancy numbers are not automatically decisive. Where amendments significantly influence the appearance or presence of a development in the public realm, they are unlikely to qualify as minor.

Infrastructure charging and the limits of Council power

The judgment involving OPD Developers Pty Ltd & Anor v Logan City Council [2025] QPEC 8 (30 April 2025) provides important guidance on the circumstances in which an infrastructure charges notice can be issued. The project involved a private hospital already authorised by a Ministerial Infrastructure Designation which meant the use was accepted development. The Council later issued an infrastructure charges notice after a building certifier approved building work. The Court declared the charges notice invalid because the accepted development status meant there was no new demand on trunk infrastructure that could lawfully support a charge. The building approval did not generate additional demand beyond what the designation already contemplated. The decision clarifies that a charges notice cannot be issued simply because a building approval exists. There must be extra demand created by development that actually requires approval.

Delays, amendments and the consequences of failing to raise issues in time

In Nucrush Pty Ltd v Gold Coast City Council & Ors (No 2) [2025] QPEC 10 (28 May 2025) the Court rejected an attempt by the Council to add new reasons for refusal based on updated ecological mapping. The Council became aware of the mapping changes years earlier but raised the issue only after significant delay. The Court found the explanation for that delay inadequate and accepted that the appellant would suffer prejudice if the new issues were introduced at such a late stage. The decision serves as a clear reminder that appeal proceedings must be conducted efficiently. Attempts to introduce new arguments or evidentiary foundations late in the process will be closely scrutinised and are unlikely to be permitted without compelling justification.

Referral agency functions and the meaning of a refusal

In the matter involving Leeward Management Pty Ltd v Brisbane City Council [2025] QPEC 17 (4 July 2025) the Court examined whether the absence of a referral agency response amounted to a part refusal. The certifier argued that the missing material triggered an appeal right. The Court disagreed and accepted that the Council’s conduct did not constitute any form of refusal for the purpose of the Planning Act 2016 (Qld). The decision affirms that there can be a single development application even when an assessment manager also performs referral agency functions. It also clarifies that the omission of a particular document or stamp does not automatically amount to a refusal and will not create an appeal right unless it genuinely reflects a refusal of part of the application.

Small lot subdivisions and the protection of neighbourhood character

The decision in Wells & Anor v Brisbane City Council [2025] QPEC 22 (17 October 2025) involved a proposal to convert an addition to an existing dwelling into a separate dwelling on a very small new lot. Although the structure already existed, the Court identified significant conflict with the planning scheme. The Character Residential Zone anticipates larger lots that retain traditional suburbs with generous gardens and established vegetation. The proposed new lots were among the smallest in the precinct and were inconsistent with the intended pattern of development. One of the lots was also highly flood prone and would be largely inundated in a severe event. The Court concluded that the proposal represented an overdevelopment of the land and that it failed to minimise flood risk. This outcome reinforces that character is not limited to how buildings appear. The rhythm of lot sizes and the quality of open space are equally important.

Childcare centre approvals and the continuing relevance of demonstrated need

The appeal involving McNamara-Healy Holdings Pty Ltd v Redland City Council & Ors [2025] QPEC 23 (22 October 2025) concerned a proposed childcare centre at Birkdale Road. The Court found that there was a clear community and economic need for additional childcare services. Although the proposal was not small in scale, its design was compatible with its mixed use context and did not produce unacceptable amenity impacts. The Court accepted that the development substantially complied with relevant assessment benchmarks and that the combination of need, design and context justified approval. The decision demonstrates that well supported need evidence remains influential when a proposal departs from aspects of the planning scheme but still represents a positive planning outcome.

Environmental constraints and the difficulty of clearing sensitive land

The appeal in Brades Property Agnes Water Pty Ltd v Gladstone Regional Council [2025] QPEC 24 (24 October 2025) involved a proposal for a major low density subdivision on a heavily vegetated site at Agnes Water. The Court concluded that the proposal failed to avoid or minimise impacts on important ecological values and that the proponent had not demonstrated a sufficient level of community or economic need to justify the clearing of the site. The environmental offset strategy was found to be inadequate. The Court also declined to give determinative weight to the existing approval for a manufactured housing estate because of concerns about its practical implementation. The decision highlights the significant challenges facing large scale residential proposals in environmentally sensitive locations.

Privacy, conditions and the finality of merits decisions

The matter involving Aesthete No. 15 Pty Ltd & Anor v Council of the City of Gold Coast & Anor (No. 2) [2025] QPEC 25 (5 November 2025) returned to Court solely to resolve a dispute about conditions after the merits of the development had already been decided. The adjoining landowners sought additional privacy screening on several levels of the approved building. The Court refused the request. It observed that the privacy interface had already been considered and resolved in the merits judgment and that the additional screening was not reasonably required. The decision reinforces that conditions cannot be used to revisit issues that the Court has already determined.

What these decisions mean for 2026

The 2025 judgments collectively establish a clear direction for planning and development in 2026. Amendments to approved designs must respect the external presentation of buildings. Infrastructure charging must be limited to genuine extra demand created by assessable development. Appeals must be prosecuted diligently and without undue delay. Character protections will continue to be applied with real force, particularly in established neighbourhoods. Environmental considerations carry substantial weight, especially where large areas of vegetation are proposed to be cleared. Evidence of community need remains capable of supporting proposals that otherwise raise concerns. Conditions will not be used to re-open matters already decided.

Together, these decisions set strong expectations for clarity, justification and respect for planning scheme intent as development activity continues to intensify across Queensland.

How We Can Help

Planning law does not operate in the abstract. It is continually refined by how the Court applies it to real projects, sites and disputes.

At Muscat Tanzer, we have the resources to critically evaluate what recent Planning and Environment Court decisions mean in practice and how they should inform strategy, design and decision-making going forward.

We assist with:

• interpreting case law and its implications for existing approvals and future proposals;
• advising on whether design changes, amendments or conditions create legal risk;
• assessing appeal prospects, evidentiary strength and strategic options;
• representing clients in Planning and Environment Court proceedings;
• responding to infrastructure charging, referral agency and compliance disputes; and
• advising homeowners and landowners navigating planning disputes or enforcement issues.

Understanding how the Court is approaching planning issues is critical to reducing risk and avoiding costly missteps. We help our clients anticipate how arguments are likely to be tested and make informed decisions with clarity and confidence.

The Queensland Government has recently introduced the Planning Amendment Regulation 2025, which updates the Planning Regulation 2017 (Qld). These changes aim to improve housing supply, streamline approvals for essential education infrastructure and strengthen safety and design standards. The amendments focus on four key areas:

• shared and workforce housing;
• community residences;
• temporary relocatable classrooms for State schools; and
• build-to-rent housing.

Housing Accommodation

The Government has extended the streamlined provisions for rooming accommodation until 2 December 2026. These changes are designed to ensure a steady supply of rental housing while Local Governments update their planning schemes. Key changes include:

• new landscaping requirements within front boundary setback; and
• continued support for rental housing options during the transition period.

Rural Workers’ Accommodation

Temporary pathways under the Queensland Rural Workers Accommodation Initiative have been extended to simplify approvals for rural worker housing projects. Key updates include:

• Part A – Repurposed existing facilities: Extended for 12 months to allow ongoing use of existing premises;
• Part B – New small-scale accommodation: Extended for 24 months to streamline approval for new rural worker housing; and
• additional safeguards ensure that new developments avoid mapped hazard areas.

Community Residence

Community residences provide housing for people who need assistance with daily living and promote inclusion in residential neighbourhoods. The amendments introduce clear design, siting and hazard considerations. Key changes include:

• reduced zones where community residences can be built without development approval;
• introduction of natural hazard considerations, including flood, bushfire, coastal, landslide and mining-related hazards;
• maximum of 7 bedrooms per residence, with design requirements for Class 2 and 3 buildings:
• maximum site coverage: 70%;
• front setback: 6m;
• rear setback: 4m; and
• side setbacks: 1.5m.

Why it matters:

• ensures housing is safe and appropriately scaled;
• provides consistent standards across Queensland; and
• supports vulnerable residents while maintaining neighbourhood character.

Temporary Relocatable Classrooms for State Schools

To accommodate growing enrolments, a Temporary Accepted Development (TAD) pathway has been introduced for relocatable classrooms. This pathway will operate until 31 December 2029. Key points:

• applies only to State schools and not to private schools;
• includes requirements for building height, setbacks and avoidance of hazard areas;
• enables rapid deployment of temporary classrooms while maintaining safety and community standards; and
• after 2029, use rights will cease unless planning approval is obtained for permanent use.

This pathway ensures that schools can quickly respond to enrolment growth without creating long-term impacts on school sites or surrounding communities.

Build-to-Rent Housing

A new land use definition for build-to-rent housing has been introduced, providing clarity for Local Governments and developers.

What is built-to-rent housing?

• purpose-built for long-term rental accommodation;
• entire developments remain rental stock, managed by a single entity;
• typically includes on-site management and shared amenities; and
• must include 50 or more dwellings.

Why it matters:

• encourages professionally managed rental housing at scale;
• provides long-term rental stability for tenants; and
• supports high-quality, well-maintained housing with shared facilities.

Common features include:

• rooftop gardens, lounges and co-working spaces;
• bike facilities and convenient access to public transport; and
• energy-efficient and environmentally friendly design.

Location suitability:

• typically located in areas with good access to public transport, employment, education and services.

Conclusion

The Planning Amendment Regulation 2025 is a significant step by the Queensland Government to:

• expand housing options through rooming, workforce and built-to-rent housing;
• ensure community residencies are safe, well-designed and integrated into neighbourhoods; and
• support State schools with timely development or temporary classrooms.

These changes provide greater certainty for developers, Local Governments and residents, while addressing housing supply challenges and supporting community infrastructure.

How We Can Help

At Muscat Tanzer, we work with private clients, developers and Local Governments to deliver planning, property and infrastructure outcomes that are strategic, compliant and practical.

Our support includes:

• providing strategic planning and development advice across all stages of a project lifecycle;
• advising on land use, zoning, approvals pathways and regulatory requirements;
• preparing, managing and negotiating development applications and accepted development pathways;
• assessing site constraints, hazards and design considerations early to reduce risk;
• coordinating with councils, State agencies and consultants to streamline approvals; and
• supporting education, housing and community infrastructure projects from concept through delivery.

Effective planning is not just about obtaining an approval. It is about making informed decisions early and at every stage of the process. At Muscat Tanzer, we help our clients navigate complexity, manage risk, deliver projects and address planning concerns with confidence and clarity.

For many councils, procurement still begins at the point the tender is released. By that stage, scope, risk allocation, evaluation criteria and contract structure are often already locked in — leaving little room to respond to market capability, pricing realities or innovation.

Early market engagement (EME) challenges this traditional approach. When used properly, it allows councils to understand the market before going to tender, improving competition, value for money and delivery outcomes — while remaining compliant with probity and legislative requirements.

This article explores how councils can use early market engagement as a strategic tool to get ahead of the tender, rather than reacting to it.

Why Early Market Engagement Matters

Markets have changed. Supply chains are tighter, construction and service delivery costs are volatile, and supplier appetite for poorly scoped or high-risk procurements is declining.

Without early engagement, councils risk:

• Designing procurements the market cannot deliver competitively
• Receiving fewer or non-conforming tenders
• Paying a premium for uncertainty and risk
• Missing opportunities for innovation or alternative delivery models

Early market engagement helps councils move from assumption-based procurement to evidence-informed procurement.

What Early Market Engagement Is — and Is Not

Early market engagement is not about negotiating contracts early or favouring particular suppliers. It is about structured, transparent dialogue with the market to inform procurement design.

Properly conducted, EME:

• Occurs before a formal tender is released
• Is open, documented and non-committal
• Treats suppliers equitably
• Informs — but does not determine — procurement decisions

When embedded into governance frameworks, EME strengthens probity rather than undermining it.

Common Early Market Engagement Tools

NSW councils commonly use a mix of the following tools, depending on scale and complexity:

Requests for Information (RFIs)

Used to test market capability, pricing drivers, delivery models and risk allocation before committing to a procurement strategy.

Industry Briefings and Market Sounding Sessions

Open forums where councils outline objectives and invite feedback on feasibility, timing and market conditions.

One-on-One Market Sounding

Structured meetings conducted under probity protocols to explore issues in more depth, particularly for complex or high-risk projects.

Supplier Questionnaires and Surveys

Efficient tools for gathering broad market intelligence where time or resources are limited.

Each tool must be supported by clear probity controls and record-keeping.

The Governance and Probity Imperative

The hesitation many councils have about early market engagement is rooted in probity risk. This is understandable — but avoidable.

Effective EME frameworks clearly address:

• Who can engage with the market and when
• What information can be shared
• How feedback is recorded and used
• How conflicts of interest are managed
• How information is equalised prior to tender

Without structure, engagement feels risky. With structure, it becomes defensible and auditable.

Legislative Context in NSW

Early market engagement is compatible with local government legislation, provided councils:

• Maintain fairness, transparency and accountability
• Avoid commitments or representations that fetter future discretion
• Ensure evaluation neutrality once a tender is released

EME should also align with councils’ procurement policies, delegations and Integrated Planning and Reporting (IP&R) framework — reinforcing procurement as part of strategic planning, not a standalone activity.

When Early Market Engagement Adds the Most Value

Early market engagement is particularly valuable where:

• The procurement is complex or high value
• Market capacity or capability is uncertain
• Innovation or alternative delivery models are sought
• Risk allocation materially affects pricing
• The council has limited recent market experience

It is less critical for low-risk, low-value or highly standardised procurements — reinforcing the need for proportionality.

Most importantly, EME helps councils shift from issuing tenders and hoping for the best to designing procurements the market can actually deliver.

How We Can Help

At Muscat Tanzer, we support NSW councils to design and implement early market engagement frameworks that are strategic, compliant and defensible.

Our support includes:

• Developing market engagement protocols and probity plans
• Advising on appropriate engagement tools for different procurements
• Facilitating market sounding and industry briefings
• Translating market feedback into procurement and contract design
• Training council officers on safe and effective engagement

Early market engagement is not about reducing governance — it is about improving decision-making before the tender is released.

Across New South Wales, councils are facing growing pressure to deliver more with less. Rising costs, constrained budgets, skills shortages and market volatility are forcing councils to rethink how procurement is planned and delivered.

In this environment, collaborative and shared procurement models are gaining renewed attention. When designed properly, these models allow councils to achieve scale, improve market engagement and reduce duplication — without surrendering local autonomy or accountability.

Why Collaboration Matters Now

For many councils, particularly regional and smaller councils, traditional stand-alone procurement is becoming less effective. Common challenges include:

• Limited internal procurement capability
• Reduced market appetite for single-council tenders
• Price volatility and supplier risk
• Increasing governance and probity expectations

Collaborative procurement can help address these challenges by aggregating demand, sharing expertise, and strengthening negotiating power — while still operating within NSW’s legislative and probity framework.

Common Models Used by NSW Councils

NSW councils typically collaborate through:

• Lead or host council models, where one council establishes a panel or contract others can access
• Regional procurement alliances, where councils jointly plan and run procurements
• Shared services or Joint Organisations, embedding procurement within a broader regional structure

Each model offers different benefits and risks. The key is selecting a structure that matches the councils’ capability, risk appetite and service needs.

Scale Without Losing Control

The biggest concern councils raise about shared procurement is not efficiency — it is control.

Successful collaborative arrangements clearly define:

• Decision-making roles and delegations
• Opt-in and opt-out mechanisms
• Probity and conflict-management processes
• Contract ownership and management responsibilities

Strong governance ensures councils retain accountability while still capturing the benefits of collaboration.

Legal and Governance Foundations

Collaborative procurement must operate within the local government legislation, and each council’s procurement policy and IP&R framework.

Importantly, collaboration does not remove individual council responsibility. Each council remains accountable for its procurement decisions — making upfront legal and governance design critical.

From Transactional to Strategic Collaboration

The real opportunity lies in moving beyond ad-hoc joint tenders to planned, strategic collaboration, including:

• Regional procurement pipelines
• Coordinated market engagement
• Shared performance and supplier insights
• Consistent governance and contract frameworks

Done well, collaborative procurement becomes a strategic enabler — supporting resilience, capability building and regional value creation.

How Muscat Tanzer Can Help

At Muscat Tanzer, we work with NSW councils to design collaborative procurement models that are legally sound, well governed and fit for purpose. Our support spans governance frameworks, probity, contract structures and capability building — helping councils achieve scale without losing control.

Introduction: The Hidden Disconnect in Local Government Planning

In New South Wales, every council operates under the Integrated Planning and Reporting (IP&R) Framework — a model designed to connect community aspirations with on-the-ground delivery.

Yet, despite this framework’s intent to link strategy, resourcing and outcomes, procurement planning is often left out of the picture.

The result? Councils struggle with fragmented purchasing, reactive tendering, and missed opportunities to leverage scale and innovation.

To truly deliver on the promise of the IP&R Framework, procurement must move from being a back-end process to a front-end planning function — one that is aligned, transparent and strategic.

1. Where Procurement Fits Within the IP&R Framework

The IP&R Framework links six key documents:

• Community Strategic Plan (CSP) – the long-term vision (10+ years)
• Resourcing Strategy – including the Long-Term Financial Plan, Workforce Strategy, and Asset Management Strategy
• Delivery Program – the 4-year plan to implement the CSP
• Operational Plan – the annual plan with actions and budgets
• Annual Report – tracking progress against commitments

Procurement is a critical enabler within this framework, yet it’s rarely treated as such.

By embedding procurement planning into the Resourcing Strategy and Operational Plan, councils can ensure that purchasing decisions are driven by long-term priorities — not short-term deadlines.

2. The Cost of Reactive Procurement

When procurement planning is disconnected from the IP&R cycle, common issues emerge:

• Rushed tenders due to misaligned project timelines
• Inefficient spending as departments duplicate purchases or miss bundling opportunities
• Limited supplier competition because the market is not given enough lead time
• Weakened governance from ad hoc or last-minute decision-making

These problems don’t stem from poor compliance — they stem from a lack of strategic coordination.

3. The Benefits of Integrated Procurement Planning

When procurement is embedded in the IP&R framework, councils can:

Achieve alignment between budgets, priorities and contracts
Procurement strategies can be linked to Delivery Program actions and capital works schedules, ensuring every dollar supports strategic goals.

Improve transparency and auditability
Documented procurement pipelines show how spending connects to approved plans — strengthening confidence among councillors, the community and auditors.

Engage the market early
Forward planning allows councils to publish upcoming opportunities, enabling suppliers (especially local SMEs) to prepare, partner, and innovate.

Drive collaboration and efficiency
Forecasting across departments or even neighbouring councils reveals shared needs and potential for joint procurement — a key theme in regional NSW.

4. Practical Steps to Bridge the Gap

To integrate procurement planning into the IP&R Framework, councils can take several practical steps:

• Develop a Procurement Pipeline
  Align major tenders and contracts with the Delivery Program and capital works schedule, updated annually with the Operational Plan.
• Link Procurement to the Resourcing Strategy
  Treat procurement as a resourcing function — alongside finance, workforce and asset management — that enables delivery of strategic outcomes.
• Engage Procurement Teams Early
  Require service units to involve procurement in business case development and project scoping, not just at the tender stage.
• Establish Governance Touchpoints
  Include procurement planning as part of budget reviews and IP&R reporting cycles, ensuring oversight by executive and audit committees.
• Report Outcomes, Not Just Processes
  Include procurement performance indicators in the Annual Report — such as savings, local spend, and ESG outcomes.

5. The Role of Leadership and Culture

Embedding procurement into IP&R is as much a cultural shift as a structural one.
It requires executives and councillors to view procurement not as a gatekeeping function, but as a strategic partner in service delivery.

Leadership teams that champion procurement planning send a clear signal: compliance matters, but strategy and foresight matter just as much.

Conclusion: The Missing Link is Now Clear

The IP&R Framework was built to create line of sight from community vision to operational delivery. But without procurement planning embedded within it, that connection breaks down.

By aligning procurement strategies, budgets, and projects under the IP&R structure, councils can:

• improve efficiency and governance
• strengthen market engagement and competition
• deliver better value and community outcomes

The message is simple: planning without procurement is planning without delivery.

How Muscat Tanzer Helps Councils Embed Procurement into the IP&R Framework

Musat Tanzer works with NSW councils to close the gap between planning and procurement.

Our firm helps embed procurement planning into the Integrated Planning and Reporting (IP&R) Framework to improve alignment, compliance and efficiency.

Our services include:

• developing procurement planning and pipeline tools linked to IP&R documentation
• aligning procurement policies with Resourcing Strategies and Delivery Programs
• Advising on governance and probity frameworks to support transparent planning
• Providing training and executive briefings on procurement integration and reporting

We help councils turn procurement from a last-minute process into a strategic enabler of planned delivery and community value.

The Queensland Procurement Policy 2026 (QPP 2026) represents the most substantial re-design of Queensland’s procurement framework in decades. Commencing 1 January 2026 (with the incentive component of the Procurement Assurance Model commencing 1 January 2027), the new policy shifts government procurement from a process-driven function to a strategic, outcomes-focused system grounded in five core pillars. It applies to all “agencies” as defined in the policy, with government-owned corporations expected to incorporate the principles into their own procurement frameworks.

How the Policy Operates

1. A Five-Pillar Queensland Procurement Approach (Part 1)

The QPP 2026 sets out a whole-of-government vision built around five strategic pillars:

• Value for Queensland – value for money defined through economic, community and whole-of-life impacts
• Local Opportunities – prioritising Queensland SMEs, small and family businesses, regional enterprises and local content
• Easy to Do Business – simplified processes, reduced red tape, and more accessible procurement pathways
• Open to New Ideas – innovation, outcome-based specifications, trials, pilots, and flexible procurement methods
• Practical Economic, Environmental and Social Impact – sustainable procurement, diverse suppliers, emissions reduction and social outcomes
  The policy operationalises these pillars through targets, commitments, and mandatory reporting frameworks, including a new whole-of-government Procurement Spend Portal and category-level dashboards.

2. Queensland Procurement Rules (Part 2)

The Rules are now the binding operational requirements guiding how procurement must be planned, undertaken, evaluated, awarded and managed. Key features include:

• Mandatory value-for-money assessments incorporating non-cost factors, supply chain risks, capability and purposeful public procurement outcomes
• Clear ethical and probity expectations, including mandatory adherence to the Queensland Government Supplier Code of Conduct and exclusion of suspended suppliers
• Flexible, risk-proportionate procurement with exemptions for diverse suppliers, SMEs, innovation challenge winners, and emergencies
• Outcome-based specifications encouraged; brand-specific requirements limited
• Purposeful public procurement evaluation criteria required for significant procurements (10–20% weighting)
• Standardised government templates for invitations and contracts to simplify and reduce administrative burden
• Disclosure obligations for contracts over $10,000, with increasing levels of detail at higher thresholds
• Mandatory contract management plans for significant procurements.
  These rules are designed to promote consistency, transparency and capability uplift across all agencies

3. Procurement Assurance Model (Part 3)

The QPP 2026 introduces a new assurance regime that:

• monitors adherence to the Supplier Code of Conduct;
• reviews supplier behaviour and ethical performance;
• enables audits, investigations and assessments; and
• from 2027, introduces an incentive-based scheme rewarding ethical, high-performing suppliers.

This is intended to strengthen supplier accountability and give agencies confidence in market integrity.

4. Governance and Operating Model

The QPP 2026 establishes a strengthened whole-of-government governance architecture, including:

• Queensland Government Procurement Committee (whole-of-government oversight)
• Procurement Ministerial Advisory Council (industry engagement)
• Category Councils (strategic oversight across six key spend categories)
• Category lead agencies responsible for annual category strategies and market intelligence

Agencies must also maintain annual agency procurement plans, aligned with whole-of-government category strategies, and must provide procurement-related data under the new reporting framework.

What the Policy Means for Queensland Government Agencies

1. A shift toward strategic procurement

Agencies must now integrate government priorities—including local participation, sustainability, innovation and social impact—into procurement planning and decision-making, particularly for significant procurements. The “procurement function” becomes a strategic enabler rather than a transactional role.

2. Increased planning, documentation and reporting

Agencies must:

• prepare detailed planning proportional to risk and value;
• apply category strategies;
• publish forward procurement opportunities;
• document value-for-money decisions; and
• provide expansive procurement-related data into the new whole-of-government system.

3. Stronger obligations for local and diverse supplier inclusion

Routine procurements must include at least one Queensland/local/small business where practical, and significant procurements require “purposeful public procurement” evaluation criteria directed at local and community outcomes.

4. More flexible, innovative and outcome-based procurement

Agencies are encouraged to:

• engage early with the market;
• use outcome-based specifications;
• apply alternative or innovative offers;
• use limited or selective methods in defined circumstances; and
• support subcontracting participation for SMEs, regional suppliers and under-represented businesses.

5. New accountability and assurance expectations

Agencies must manage ethical supply chain risks, cyber security obligations, modern slavery considerations, environmental impacts and supplier conduct, with clearer consequences for suppliers who breach standards.

6. Procurement capability uplift

The QPP 2026 requires agencies to invest in:

• staff training;
• procurement functional maturity assessments; and
• strengthened contract and supplier relationship management.

Conclusion

The Queensland Procurement Policy 2026 modernises procurement across government, creating a more transparent, strategic, flexible and outcomes-focused system. For agencies, this means more upfront planning, greater accountability, and a clearer focus on delivering value for Queensland through local participation, innovation, sustainability and social impact. It positions procurement as a key lever for economic development and public value creation across the State.

Introduction: Procurement as an Economic Lever

Every year, local governments across New South Wales spend billions of dollars on goods, services and infrastructure. Yet too often, that spending flows out of the region — missing the opportunity to strengthen local businesses, create jobs and build resilient communities.

Procurement isn’t just an administrative process; it’s one of the most powerful economic development tools available to councils. When used strategically, it can drive investment, encourage innovation, and multiply community value — all while remaining compliant with the Local Government Act 1993 (NSW) and Local Government (General) Regulation 2021.

The challenge? Turning that potential into practice, without compromising probity or value for money.

1. The Shift from Transactional Buying to Local Value Creation

Historically, councils have focused on cost and compliance. The lowest-priced tender, delivered through a compliant process, was often considered the best outcome.

But a growing number of NSW councils are recognising that “value for money” means more than price — it includes social, economic and environmental outcomes that strengthen the local economy.

Strategic procurement reframes every purchase as an opportunity to:

• build local supplier capability and participation
• stimulate small and medium business growth
• support regional employment and apprenticeships
• encourage local innovation and sustainability

Not all projects and services can be delivered by local suppliers, whether because expertise or capability is lacking or market size generally, so it requires councils to measure what matters — and not just contract value, but community benefit.

2. Embedding Local Economic Outcomes into Procurement Frameworks

To make local economic development a real procurement outcome, councils need to integrate it from the start. This includes:

• Policy and Strategy Alignment
  Embedding local economic development objectives within the council’s procurement policy, Delivery Program and Community Strategic Plan ensures consistency across decision-making.
• Defining “Local” and Setting Clear Targets
  Councils must define what “local” means — by LGA, region, or supply chain tier — and set realistic, defensible participation targets. Again, you don’t want to settle for a “local” solution if the result will not benefit the council or the community – so each procurement and the relevant market needs to be considered before deciding the weigh to be given to “local” and what “local means.
• Weighting and Evaluation Criteria
  Including local economic contribution as part of tender evaluation (for example, a 10% weighting) encourages bidders to demonstrate community benefits transparently and competitively.
• Supplier Development and Early Engagement
  Councils can run supplier briefings, workshops and capability programs to prepare local businesses for upcoming tenders and partnership opportunities.

When applied consistently, these measures enable councils to procure locally without compromising probity.

3. Balancing Compliance, Fairness and Local Preference

One of the biggest barriers to local economic procurement is fear of breaching probity or competitive neutrality rules.

The good news is that the NSW framework allows flexibility — as long as councils maintain fair, transparent, and evidence-based processes.

Councils can lawfully incorporate local outcomes by:

• using weighted criteria linked to measurable benefits;
• applying pre-qualified supplier panels that prioritise local or regional capability;
• demonstrating that local participation delivers better long-term value, not protectionism;
• documenting decision-making to withstand audit scrutiny.

Done properly, this approach supports both compliance and community confidence.

4. Collaboration and Regional Scale

Some local markets are too small to deliver major projects independently. In these cases, regional collaboration becomes key.

Neighbouring councils can align procurement policies or form shared panels to:

• aggregate demand and achieve scale;
• create predictable, multi-year pipelines for local suppliers;
• build regional manufacturing, logistics and service capacity.

This is where shared services and joint procurement models under Part 3 Division 4 of the Act can deliver powerful local economic outcomes — by keeping more public dollars circulating within the region.

5. Measuring the Impact

To make local economic development more than rhetoric, councils must measure outcomes such as:

• Percentage of spend with local or regional suppliers
• Local jobs or apprenticeships created
• Supplier diversity and SME participation
• Long-term value (e.g. reduced maintenance, local responsiveness)

Collecting and reporting this data closes the loop — demonstrating accountability to both the community and auditors.

Conclusion: Procurement as a Local Growth Strategy

When councils integrate local economic goals into procurement, every dollar spent becomes an investment in community resilience.

Strategic procurement allows councils to:

• build stronger local industries
• foster innovation and regional capability
• retain value within the community
• deliver on the broader vision of sustainable local development

For NSW councils, the future of local economic growth isn’t just about attracting investment — it’s about procurement with purpose.

How Muscat Tanzer Helps Councils Drive Local Economic Outcomes Through Procurement

Muscat Tanzer helps NSW councils use procurement as a lever for local economic development — lawfully, strategically and transparently.

Our firm supports councils to:

• Review and modernise procurement frameworks to include local and regional economic outcomes
• Design weighted evaluation criteria and supplier engagement programs that meet probity and legislative standards
• Draft and implement local preference policies consistent with the Local Government Act 1993 (NSW)
• Facilitate shared services and regional procurement arrangements to maximise scale and impact
• Provide training and governance support for councillors, executives and procurement staff

We help councils move beyond “buying well” — to buying for community growth.

Introduction: A Turning Point for Local Government Procurement in NSW

Procurement in New South Wales local government has long been seen as a compliance exercise — a checklist of quotations, thresholds, and tender procedures under the Local Government Act 1993 (NSW) and Local Government (General) Regulation 2021.

But as community needs grow more complex and resources tighten, councils are being asked to deliver more value, more innovation, and more impact — without more funding.

This shift is forcing a rethink: procurement can no longer just be about compliance; it must be a strategic capability.

1. The Traditional Compliance Lens

Many NSW councils still treat procurement as a risk-control mechanism rather than a value-creation tool.

Procurement teams are often positioned as “process gatekeepers” — ensuring tenders comply with regulation, evaluation reports are watertight, and contracts are signed off correctly.

While compliance remains critical (and non-negotiable), this narrow view can limit the ability of councils to use procurement strategically to:

• achieve better social, environmental and economic outcomes;
• engage early with the market to drive innovation;
• build partnerships that deliver value over the contract life, not just at the point of award.

The result is that procurement becomes reactive, transactional, and disconnected from the council’s broader strategic priorities.

2. Procurement as a Strategic Enabler

Leading councils across NSW — and nationally — are reframing procurement as a strategic enabler rather than a procedural function.

A strategic procurement function:

• aligns with the council’s corporate and community strategic plans;
• uses data and forward planning to forecast demand and coordinate purchasing across departments;
• engages early with suppliers and regional partners to shape the market, not just respond to it;
• Measures performance and outcomes, not just compliance;
• Integrates ESG, Aboriginal participation, and local economic outcomes into procurement strategies.

This requires a cultural and structural shift — one that sees procurement staff not as rule enforcers, but as commercial advisors and strategic partners to service delivery teams.

3. The Capability Challenge

To make this shift, councils must build new capabilities across governance, strategy, and commercial practice.

Procurement teams need support to:

• develop category management and pipeline planning skills;
• understand risk allocation and contract performance management;
• build confidence to engage early with the market while maintaining probity;
• use data and technology to improve visibility and reporting;
• collaborate across councils and regions to leverage scale and shared expertise.

At the governance level, executives and councillors also need to see procurement differently — as a lever for innovation, efficiency, and regional development.

4. Moving from Policy to Practice

Many councils already have sound procurement policies that refer to “value for money,” “sustainability,” and “strategic alignment.” The challenge is turning those words into action.

That means embedding procurement into:

• Early project design — ensuring procurement strategies are developed at the concept stage, not after budgets are set;
• Integrated planning and reporting frameworks — linking procurement planning to the Delivery Program and Operational Plan;
• Performance measurement — capturing not just spend and compliance, but also savings, social outcomes, and innovation metrics.

5. The Role of Leadership and Governance

Ultimately, elevating procurement requires leadership. General Managers, Directors, and Audit & Risk Committees must reinforce that good procurement is good governance.

Strong leadership can shift procurement from being seen as a compliance burden to being valued as a driver of trust, efficiency, and community benefit.

Conclusion: From Gatekeeping to Value Creation

The evolution of local government procurement in NSW is not about relaxing compliance — it’s about layering strategic capability on top of it.

Councils that invest in procurement capability and culture are better positioned to achieve tangible outcomes:

• Better supplier performance
• More resilient local economies
• Greater transparency and trust
• Sustainable, measurable community impact

In short, the councils that move procurement from “tick box” to “toolbox” will be the ones best equipped to meet the next decade’s challenges.

How Muscat Tanzer Can Help Councils Elevate Procurement Capability

Muscat Tanzer partners with councils across New South Wales to move procurement from compliance to strategic impact.

We help build the legal, governance, and commercial frameworks that enable councils to plan, engage, and contract with confidence — while staying fully compliant with the Local Government Act 1993 (NSW) and the Local Government (General) Regulation 2021.

Our support includes:

• reviewing and modernising procurement policies and frameworks
• advising on early market engagement and probity-safe innovation
• designing contracting and risk management strategies that reward performance, not just process
• providing training for councillors and staff to strengthen capability and governance

We help councils transform procurement from a procedural necessity into a strategic tool for community value and trust.

Over the coming weeks Muscat Tanzer will be turning our attention from Western Australia to New South Wales and delivering an article Series we have called Procurement as a Strategic Enabler – Strengthening Council Capability Across NSW.

Procurement within NSW local government has historically focused on compliance — ensuring transparency, probity, and value for money. However, this narrow focus can unintentionally limit innovation, market engagement, and long-term planning.

The NSW Government and the Office of Local Government now encourage councils to take a more strategic approach, positioning procurement as an enabler of:

• Efficient service delivery
• Economic development and regional resilience
• Sustainability and social outcomes
• Governance and community trust

Strategic procurement aligns decision-making with long-term planning under the IP&R Framework and turns procurement from an administrative function into a core capability for strategic delivery.

This Series focusses on strategic procurement as driver of capability, innovation and regional value, and how councils can move from compliance to leadership.

Why Procurement Needs to Evolve

1. Compliance is the Baseline — Not the Strategy

While adherence to policy and regulation is non-negotiable, compliance alone does not deliver better outcomes. Councils must move from procedural assurance to proactive planning and performance measurement.

2. Procurement as a Driver of Economic and Social Value

Procurement is one of the largest levers councils hold to support local business participation, Aboriginal engagement, environmental outcomes and regional collaboration.

3. Market Engagement and Capability Building

Strategic procurement involves earlier and more open engagement with suppliers — within probity boundaries — to shape markets, encourage innovation, and attract better competition.

4. Governance, Risk and Transparency

Elevating procurement governance ensures consistency in decision-making, reduces probity exposure, and builds public trust in how ratepayer funds are spent.

What Strategic Procurement Looks Like

A strategically mature council will:
✅ Integrate procurement planning into its Resourcing Strategy and Delivery Program
✅ Develop a forward procurement pipeline to signal opportunities to the market
✅ Use data and spend analysis to inform decisions and demonstrate performance
✅ Align evaluation criteria with community and sustainability outcomes
✅ Build internal capability and accountability frameworks for procurement staff and managers

Key Enablers

1. Policy and Framework Alignment
   Update procurement policies and delegations to align with IP&R objectives and the Local Government Regulation 2021.
2. Market Engagement Protocols
   Develop structured early engagement protocols to encourage supplier dialogue without compromising probity.
3. Capability and Training
   Build staff confidence and professional development pathways to ensure consistency and accountability.
4. Data and Technology
   Use procurement systems, dashboards and analytics to manage pipelines, contracts and supplier performance.

Our upcoming article topics include:

1. From Compliance to Capability: Elevating Procurement as a Strategic Function – Most NSW councils still treat procurement as a procedural task. This article reframes it as a strategic lever for achieving corporate objectives and community outcomes, aligning with the Office of Local Government (OLG)’s focus on integrated planning and reporting, helping councils evolve governance and policy frameworks.
2. Local Economic Development Through Strategic Procurement – How councils can structure procurement to strengthen regional supply chains, small and medium-sized enterprise (SME) participation, and local content, within NSW probity and competition laws. Ties procurement directly to community wellbeing and economic sustainability.
3. Procurement Planning Under the Integrated Planning and Reporting Framework: The Missing Link – Explores how councils can integrate long-term procurement planning with delivery and operational plans, to link spending with measurable outcomes. Brings procurement into the core of the council’s strategic planning cycle, not an afterthought.
4. Collaborative and Shared Procurement Models: Delivering Scale Without Losing Control – Reviews the legal, governance and efficiency benefits of regional procurement alliances and shared service models between councils. Highly topical for smaller councils under fiscal pressure and the OLG’s encouragement of resource-sharing.
5. Early Market Engagement: Getting Ahead of the Tender –How NSW councils can safely conduct pre-tender market sounding and information sessions to drive innovation and competition. Connects probity and innovation, two themes often seen as conflicting.
6. Outcome-Based Procurement: Paying for Results, Not Activities – how councils can link contract payments to measurable performance outcomes within the legislative framework. Supports councils pursuing performance-based funding and continuous improvement agendas.
7. Building Procurement Capability: From Policy to Practice – Focuses on training, templates and governance structures that enable staff to apply strategic procurement consistently. Addresses the gap between procurement frameworks and practical capability; a common council pain point.
8. The Role of Legal and Probity Advisors in Strategic Procurement – Outlines how external advisors add value through early engagement, governance, probity, and drafting fit-for-purpose contracts. Proactive partners in strategic implementation, not just compliance.
9. Embedding Environmental, Social, and Governance (ESG) and Circular Economy Principles in Procurement – How councils can use procurement to achieve sustainability goals, manage climate risk, and stimulate the circular economy. Perfect alignment with NSW Government policy priorities and community expectations.
10. Procurement in Infrastructure Delivery: Managing Risk Across the Lifecycle – Discusses integrated procurement strategies for major works under the Local Government (General) Regulation 2021 and public works exemptions. Appeals to councils with large capital programs or regional infrastructure pipelines.

Keep an eye out for this soon to be released Series, and if you would like more information in the meantime in relation to any of these topics, please let us know.

How We Can Help

At Muscat Tanzer we work with NSW councils to embed procurement as a strategic and compliant function.

Our services include:

• Procurement framework and policy reviews
• Governance and probity advice
• Early market engagement and pipeline planning
• Contract design and outcome-based models
• Council training and capability building

We help councils move from procurement as process to procurement as performance — strengthening governance and delivering measurable community benefit.

As always, the draft Queensland Procurement Policy (QPP) 2026 does not apply to local governments, including councils. For many councils, this may suggest that the policy is largely irrelevant to their day-to-day procurement operations under the Local Government Act 2009 and Local Government Regulation 2012. However, while the QPP does not impose any direct obligations on councils, it still has practical influence, strategic relevance, and offers several opportunities for councils to leverage.

Why the QPP doesn’t directly apply to Councils

Councils remain governed by their own legislative procurement framework, which requires councils to:

• ensure value for money;
• promote open and effective competition;
• act ethically and fairly;
• manage risks; and
• consider the local government principles.

The QPP is developed for Queensland Government departments and statutory bodies, not councils. This separation preserves the independence of councils to set procurement policies suited to their scale, markets and regional priorities.

Why the QPP still matters to Councils

Even though the QPP doesn’t apply directly, State Government policies often set directional expectations for the public sector. Councils interact with these expectations whenever:

• industry compares council procurement approaches to State Government standards;
• joint or collaborative procurement activity involves both State agencies and councils;
• suppliers expect a degree of alignment across government tiers; or
• funding programs expect alignment with State policy objectives.

For these reasons, the QPP can influence how stakeholders view the maturity of a council’s procurement framework.

Key impacts on councils

Supplier and industry behaviour

Contractors operating across Queensland increasingly benchmark public buyers against QPP-style requirements, particularly around sustainability, social outcomes, and ethical supply chains. Councils may face pressure to respond to similar expectations.

Funding and grant alignment
State-funded infrastructure and community programs may reference QPP-style standards, meaning councils that mirror or partially adopt QPP principles may find compliance simpler.

Procurement modernisation
The QPP’s emphasis on early market engagement, capability uplift, digital procurement tools and social impact procurement can serve as a useful benchmark for councils seeking to update procurement policies or systems.

Opportunities for councils

Voluntary alignment where it adds value
Councils can selectively adopt QPP principles, such as supplier transparency, sustainability criteria or enhanced probity, without being bound by the full obligations.

Stronger collaborative procurement
Alignment with QPP methodologies can make it easier for councils to partner with State agencies or neighbouring councils on shared infrastructure, sustainability initiatives, or strategic procurement pipelines.

Supplier attraction and market confidence
Where councils adopt (or adapt) QPP-aligned practices, suppliers receive consistent signals across State and local government, reducing bid costs and increasing participation, particularly for major capital projects.

Demonstrating procurement maturity
Referencing QPP-style objectives in local procurement policies can help councils showcase robust governance and industry-best practice without adopting rigid State-based rules.

How Muscat Tanzer can assist Councils

We help councils translate QPP developments into practical, council–specific solutions, including:

• reviewing and updating council procurement policies to align (where useful) with key QPP principles;
• designing procurement strategies that leverage early market engagement and supply chain improvements;
• advising on joint procurement or State-local government collaborations;
• providing probity, evaluation and documentation support for major procurements.