Local Jobs First

Summary

Local Jobs First is comprised of two components: 1. Victorian Industry Participation Policy (VIPP) — local content and industry development requirements 2. Major Projects Skills Guarantee (MPSG) — apprentice/trainee requirements for construction $20M+

It applies to all procurement by departments and FMA entities above the thresholds.

Thresholds

The Minister can also designate any project as a Local Jobs First project regardless of value.

Key Documents (Updated October 2025)

• Local Jobs First Policy (Oct 2022)
• Agency Guidelines (Oct 2025)
• Supplier Guidelines (Oct 2025)

Key Defined Terms

Source: LJF Glossary

• Local — all suppliers producing Victorian, Australian or New Zealand goods or services, or when they have added value to imported items (e.g. providing a local employment outcome to an imported product)
• Local Content — goods produced, services supplied, or construction activities carried out by local industry, including assembly, transport, and labour
• Local Industry — industry and businesses based in Australia or New Zealand
• Contestable Goods and Services — goods and services where there are competitive international and local suppliers meeting agency requirements
• Non-contestable Project — Standard or Strategic Project determined non-contestable under s4B of the Act, where LJF requirements need not apply
• Employment (AEE) — annualised employee equivalent. Calculated by dividing ordinary working hours worked and paid by full-time hours per annum (typically 1,976 hours)
• Jobs Created — a job (one AEE) specifically employed because of work generated by a specific project
• Jobs Retained — a job (one AEE) already working for the supplier before the project contract, working in tasks related to the project
• LIDP — Local Industry Development Plan. Document detailing supplier's commitment to LJF requirements and expected local content and job outcomes. Requires ICN Acknowledgement Letter.
• VMC — Victorian Management Centre. Online system hosted by ICN for project registration, reporting, and completion.
• Rural and Regional Victoria — 48 local government areas as defined in Regional Development Victoria Act 2002, including 10 regional cities, 38 rural LGAs, and 6 alpine resort areas

MPSG Detail

The Major Projects Skills Guarantee applies to construction projects $20M+ and requires 10% of total labour hours be performed by apprentices, trainees, and cadets (ATCs).

Projects $20M+ must also report on employment outcomes over the life of the project, reflected as contract conditions.

Key Roles

• Local Jobs First Commissioner — independent statutory officer with advocacy, engagement and compliance powers
• Local Jobs First Administrator — supports implementation, monitoring, reporting and compliance within each agency
• Contract Manager — person within agency responsible for managing the LJF process for a contract
• DJSIR — Department of Jobs, Skills, Industry and Regions, administers the Act and LJF