Understanding the amendments to the Local Government Regulation

Published on 03 February 2026

Recent amendments to the Local Government Regulation 2012 came into effect on 12 December 2025. This briefing summarises the key procurement related changes applicable to councils operating under the ‘Default Procurement Rules, along with suggested actions for councils’ consideration.

To support councils, we are hosting a webinar to walk through the changes, discuss practical implications, and answer any questions. You can register here:

REGISTER HERE

Key Changes to the Regulation

Increased thresholds for tenders and quotes
Thresholds have been uplifted in line with Brisbane CPI from when the thresholds were first introduced. As of 12th December 2025, the procurement thresholds are as follows:

• Medium sized contractual arrangements: $15,000 → $21,000 (ex GST) sized contractual arrangements: $15,000 → $21,000 (ex GST) sized contractual arrangements: $15,000 → $21,000 (ex GST) sized contractual arrangements: $15,000 → $21,000 (ex GST) sized contractual arrangements: $15,000 → $21,000 (ex GST)
• Large sized contractual arrangements: $200,000 → $280,000 (ex GST) sized contractual arrangements: $200,000 → $280,000 (ex GST) sized contractual arrangements: $200,000 → $280,000 (ex GST) sized contractual arrangements: $200,000 → $280,000 (ex GST)

Valuable non current asset limits:

• Plant & equipment: $5,000 → $7,000

• Other non current assets: $10,000 → $14,000

Note: There is no change in reporting requirements for contractual arrangements entered into over $200,000 (s 237 of the LGR) and these contracts must be advertised publicly. 

Automatic annual CPI indexation
Thresholds will now adjust automatically on 1 July each year, removing the need for future regulatory amendments. The indexed thresholds will be published on the Departments website.

Clarified threshold calculations
Thresholds must be applied to the total expected value of all contracts with a supplier for goods or services of a similar type over the life of the arrangement.

“Contractual arrangement” now explicitly includes any extension options and reference to Financial Year has been removed.

Existing procurement obligations remain unchanged

• Medium‑sized arrangements: at least three (3) written quotes required, unless operating under an exception to the LGR.
• Large‑sized arrangements: full and open public tender unless operating under an exception per the LGR.
• Valuable non‑current asset disposals: tender or auction, unless an exception applies.

Greater flexibility for asset disposal

Councils may now determine how to dispose of valuable non‑current assets (excluding land) without ministerial exemption.

Local Buy Arrangements remain an approved exception

As part of the Local Government Association of Queensland, Local Buy are the only organisation empowered to establish LGA Arrangements. Councils may continue to utilise Local Buy Arrangements for procurements of any value, while remaining fully compliant.

Benefits of using our Arrangements include:

Recommendations

Local Buy recommends that council update its Procurement Policy to reflect the revised thresholds for Medium and Large Sized Contractual Arrangements. Please note that any amendments to the Procurement Policy are required to be formally endorsed by full council. 

In addition, you may wish to incorporate the following clause into your policy to ensure clear recognition of the regulatory exemption applicable to Local Buy arrangements. This exemption removes the requirement to undertake a tender process, even where the value of the procurement exceeds the standard tender threshold.

Provision: Use of Local Buy Arrangements

As a wholly owned subsidiary of the Local Government Association of Queensland (LGAQ), Local Buy is authorised to establish and administer Local Government Association (LGA) Arrangements under section 234 of the Local Government Regulation 2012. Councils may use these arrangements as an alternative to undertaking the standard procurement processes that apply to medium-sized and large-sized contracts under Chapter 6 of the Regulation.

Please join us at our webinar to walk through the changes, discuss practical implications, and answer any questions. You can register here:

REGISTER HERE

 If you have any queries in the meantime, please don’t hesitate to contact our team.