The Australian government remains one of the country’s largest buyers of goods and services, making Business to Government (B2G) a major growth avenue for SMEs and corporates alike. But in 2025, B2G is evolving rapidly—driven by digital procurement, new sustainability mandates, and an intensified focus on local suppliers. For businesses ready to adapt, there’s serious opportunity on the table. Here’s how to get a slice of the B2G pie.
Why B2G Matters More Than Ever in 2025
In the 2024–25 federal budget, the Australian government committed over $100 billion to infrastructure, health, defence, and digital transformation projects. That’s not just headline spending—it’s real money flowing into contracts for everything from cloud services to construction, consulting, and logistics. Local and state governments are following suit, with ambitious net zero targets and regional investment plans fueling further demand.
- Digital-first procurement: The AusTender platform and state equivalents now handle nearly all public tenders, streamlining access but raising the bar for compliance and transparency.
- SME participation targets: Federal agencies are under pressure to meet the 20% SME procurement target, creating new opportunities for agile local firms.
- Sustainability and social value: 2025 sees new requirements for environmental, Indigenous, and social impact reporting on tenders above $5 million.
For example, Sydney-based tech startup Datawise secured a $2.4 million analytics contract after demonstrating its carbon-neutral operations—showing just how much policy priorities now influence B2G success.
How to Position Your Business for B2G Success
Winning government contracts is competitive, but not out of reach. Here’s what sets successful B2G suppliers apart in the current landscape:
- Get procurement-ready: Ensure your business is registered on relevant portals (AusTender, VendorPanel, state equivalents) with up-to-date profiles, certifications, and insurances.
- Understand the rules: 2025 policy updates mean strict adherence to Modern Slavery Act reporting, ESG standards, and local content requirements. Prepare documentation in advance.
- Focus on capability statements: Tailor your business case to address government objectives, showing proven outcomes, risk management, and value for money.
- Leverage partnerships: Many tenders encourage or require consortium bids—especially for SMEs. Team up with complementary providers to boost your offering.
Case in point: In March 2025, a Melbourne-based facilities management SME partnered with an Indigenous-owned cleaning firm to win a major Victorian government contract, blending capability with strong social value credentials.
2025 B2G Policy Updates Every Business Should Know
This year brings some notable changes that directly affect how you bid for—and deliver—government contracts:
- eInvoicing mandate: From July 2025, all federal government agencies require suppliers to issue eInvoices, improving payment times and cash flow for SMEs.
- Net Zero Procurement Policy: Contracts over $5 million must now include carbon reduction plans and environmental reporting, aligning with the government’s 2030 emissions targets.
- Local Industry Participation Plans: Bidders for major projects must show how they will engage Australian suppliers and workers, with preference points for regional and Indigenous participation.
Staying on top of these changes isn’t just about compliance—it’s a way to differentiate your business and tap into the government’s push for innovation and sustainability.
Conclusion: B2G is a Growth Engine for 2025
With record levels of government investment and a renewed focus on digital, sustainable, and socially responsible procurement, B2G is set to remain a lucrative channel for Australian businesses. By understanding the evolving requirements, preparing your business for compliance, and showcasing your unique value, you can position your company to win—and deliver—on government contracts in 2025 and beyond.
