How to Win Government Contracts in Australia

Introduction

Securing a government contract in Australia can feel intimidating—especially for small businesses that may have never seen a government-issued RFT document before, let alone written a compliant response to one. But every year, thousands of new suppliers successfully win government work. With the government’s growing commitment to award more contracts to small and medium enterprises (SMEs), there’s never been a better time to learn the process and start confidently responding to opportunities.

Government contracting isn’t just about winning one job; it’s about building credibility, improving cash flow, and unlocking long-term business growth. By understanding the tender process and preparing properly, even first-time bidders can compete with confidence.

This guide breaks down exactly how to get started—where to find opportunities, how to interpret the tender documents and prepare your materials, and the key steps to becoming tender-ready.

Understanding Government Contracts in Australia

Government contracts are formal agreements between a business and a government agency for the delivery of goods or services. These contracts can range from one-off purchases—such as office supplies or maintenance work—to multi-year service agreements or infrastructure projects.

For small businesses, they represent a powerful growth opportunity. Not only do they provide steady, reliable income, but they also help build credibility and open doors to future contracts with other agencies or private clients.

Most contracts fall into one of three categories:

• Goods: Supplying materials or equipment.

• Services: Delivering cleaning, maintenance, consultancy, or professional services.

• Works: Construction, refurbishment, or other physical project delivery.

Understanding how these contracts work—and how government buyers assess value for money—is the foundation of preparing successful tenders.

Researching Opportunities

Before you can start bidding, you need to know where government contracts are listed and how to identify the ones that suit your business best. Most opportunities are advertised publicly through online procurement portals—starting with AusTender, the Australian Government’s central hub for federal contracts.

Each state and territory also runs its own portal, such as:

• NSW eTendering

• VIC Tenders

• QLD QTenders

• SA Tenders and Contracts

• WA Tenders

Don’t overlook local councils and regional procurement networks. Many councils issue smaller contracts directly suited to small and medium enterprises (SMEs), often through simpler quotation processes conducted through council webpages, rather than portals.

Spend time browsing these sites regularly, setting up alerts for relevant categories, and reviewing past tenders to understand what government buyers typically look for. This research helps you identify realistic opportunities and align your offerings with the government’s current needs an

d priorities.

Preparing Your Business

Before you start applying for government tenders, it’s essential to make sure your business is contract-ready. This means having all your registrations, certifications, policies, and records in order so buyers can see that you meet their compliance requirements from the outset.

Start by checking that your ABN and business registrations are current and that your business name, contact details, and structure are consistent across all official documents. Review your insurance certificates—particularly public liability and workers’ compensation—and confirm that the coverage aligns with common government contract thresholds.

Most government buyers also expect a few minimum policies and procedures to demonstrate your commitment to compliance and workplace safety. At a minimum, you should have:

• A Work Health and Safety (WHS) Policy

• An Environmental Policy

• A Quality Management Policy or Statement

• An Equal Employment Opportunity / Diversity Policy

• A Child Safety Policy, if your work involves schools or child-facing environments

If you operate in a regulated industry, you may also need additional licences or certifications (for example, security, labour hire, or safety accreditation). Keep digital copies of these documents ready to upload with your tenders.

Financial stability is another key factor. Maintain up-to-date financial statements, and if possible, obtain a credit reference or summary report to show reliability. Agencies want assurance that you can deliver the contract without financial risk.

Getting your compliance and documentation sorted early not only makes the tendering process smoother—it also helps you respond faster and more confidently when the right opportunity appears.

Developing a Strong Proposal

Once your business is contract-ready, the next step is crafting a clear, well-structured, and compliant proposal. Government buyers assess tenders on merit and evaluation criteria, so your response needs to demonstrate exactly how you meet or exceed each one.

Start by carefully reviewing the Request for Tender (RFT) or Request for Quote (RFQ) documents. Every submission will include a list of evaluation criteria—usually covering areas such as:

• Capability and experience – your track record delivering similar work

• Methodology or approach – how you plan to deliver the service or project

• Key personnel – who will do the work and their qualifications

• Pricing and value for money – not just cost, but efficiency and benefit

• Compliance – insurance, policies, licences, and WHS considerations

Address each criterion in order, using clear headings so assessors can easily match your answers to the requirements. Many bids are marked down or ruled non-compliant simply because responses aren’t structured around the published criteria.

Tailor your proposal to each specific contract. Avoid generic templates—focus on what matters to that particular agency or project. Show that you understand their objectives and pain points, and link your solutions directly to them.

Strengthen your response with evidence of past performance—case studies, project examples, or client testimonials that prove your capability and reliability. Where possible, quantify your results (e.g. “reduced costs by 15%,” “maintained 100% on-time delivery”).

Finally, present your proposal professionally. Use consistent formatting, short paragraphs, and bullet points for readability. A well-organised tender not only looks credible but also makes it easier for evaluators to score you highly.

Networking and Building Relationships

While a strong written proposal is critical, many successful suppliers also invest time in building relationships within the government procurement network. Understanding how buyers think and what they value can give your business a real advantage—especially when you’re new to the tender process.

Start by attending industry briefings, supplier information sessions, and government forums. These events are often announced through procurement portals like AusTender, as well as through state and local government channels. They’re an excellent way to meet decision-makers, ask questions, and gain insights into upcoming opportunities.

Develop genuine connections with procurement officers and contract managers. Professional, respectful communication goes a long way—especially when you focus on understanding their needs rather than making a hard sell. Many agencies are open to supplier engagement before or after a tender to clarify requirements or discuss capability, as long as probity rules are followed.

You can also strengthen your visibility by joining government supplier panels or prequalification schemes, where relevant. These programs demonstrate your reliability and make it easier for buyers to engage you directly for future work.

Consistent networking builds trust over time. When procurement teams recognise your name, your experience, and your professionalism, they’re far more likely to view your tender submission with confidence.

Understanding the Evaluation Process

Every government tender follows a formal evaluation process designed to ensure fairness, transparency, and value for money. Knowing how your proposal will be assessed helps you write more effectively and align your response with what evaluators are actually looking for.

Most tenders use weighted evaluation criteria, meaning each area of your response is scored based on its importance to the contract. Common categories include:

• Capability and experience – your ability to deliver the required services

• Technical approach or methodology – how you plan to meet the specifications

• Pricing and value for money – cost competitiveness and overall benefit

• Compliance and risk – insurance, policies, safety systems, and certifications

• Sustainability and social outcomes – local content, diversity, and environmental impact

To stand out, address each criterion clearly and back up your claims with evidence—such as project results, client testimonials, or performance data. Avoid vague statements like “we always deliver quality” and instead provide measurable examples (e.g. “achieved 98% on-time delivery across 15 government sites”).

Attention to detail is crucial. Evaluators often review dozens of submissions, and a single omission—like a missing attachment or an unanswered question—can cost valuable points or even render your bid non-compliant.

By understanding how tenders are scored, you can structure your proposal around the evaluation framework, making it easier for assessors to award you higher marks.

Compliance and Legal Considerations

Winning a government contract comes with ongoing compliance obligations, and understanding these from the start is essential to protecting your business and maintaining a good relationship with your client.

Before signing any agreement, make sure you understand the terms and conditions of the contract — especially around scope, payment schedules, insurance, and performance requirements. Government contracts are legally binding, and failure to meet obligations can lead to penalties or contract termination.

Your business should already have the core compliance policies in place — including Work Health and Safety, Environmental Management, Quality Assurance, and Equal Employment Opportunity. Depending on the nature of the work, additional requirements such as child safety, data security, or privacy policies may also apply.

It’s also wise to seek legal or professional advice before signing a contract, particularly if the value is significant or the terms are unfamiliar. A quick review from a legal advisor can clarify liability clauses, indemnities, and dispute-resolution procedures.

Finally, ensure your business has a clear internal process for managing disputes or variations. Government agencies value transparency and proactive communication — raising issues early and documenting them properly can prevent misunderstandings and protect your reputation.

By embedding strong compliance and governance practices into your operations, you’ll not only meet contract requirements but also strengthen your credibility for future tenders.

Conclusion

Securing government contracts doesn’t happen overnight, but with the right preparation and strategy, it’s entirely achievable — even for first-time bidders. By understanding how the tender process works, preparing your documentation, aligning with evaluation criteria, and maintaining compliance, your business can confidently compete for government work.

Persistence is key. Each tender you submit sharpens your approach and strengthens your capability. Use feedback to refine your proposals, keep building your professional networks, and continue improving your readiness.

Winning your first government contract can be transformative — it builds credibility, creates steady revenue, and opens the door to long-term partnerships and sustainable business growth.

If you’re ready to take the next step toward becoming tender-ready, explore YCM’s Tender Readiness Toolkit or reach out for tailored support to help your business stand out in the competitive government marketplace.