Analysis

Water Corporation Now Requires 10% Aboriginal Subcontracting on Contracts Over A$5 Million

From 1 July 2026, Water Corporation contracts over A$5 million with Aboriginal employment targets must send 10% of subcontracted value to Aboriginal businesses; it was on track for A$45.6 million in 2025-26.

Since 1 July 2026, bidders for Water Corporation contracts over A$5 million that carry Aboriginal employment targets must direct at least 10% of subcontracted value to Aboriginal businesses. Aboriginal employment, training and cultural capability also carry greater weighting in tender evaluations.

Where the utility stood

Water Corporation was on track to award A$45.6 million (6.7%) in contracts to Aboriginal businesses in 2025-26, according to the WA Government's June 2026 statement on the changes.

Why the rule matters now

The change arrives as spending accelerates. The 2026-27 State Budget provides A$2.7 billion for water infrastructure across Water Corporation, Aqwest–Bunbury Water and Busselton Water. Water Corporation's own new works investment reached A$2,180.9 million in FY 2025-26, and live programmes include the A$543 million Goldfields and Agricultural Water Supply Scheme upgrade and the A$81 million Kwinana Water Reclamation Plant expansion.

What prime contractors face

Most of Water Corporation's major capital works go to prequalified contractors through select bids, and 69 projects sit on its list of upcoming work contracts dated 1 September 2026. On contracts above A$5 million with Aboriginal employment targets, a bidder's Aboriginal subcontracting plan now affects both compliance and score.

Questions the brief answers

How Water Corporation buys, which contractors hold its largest programmes, and which supplier categories should move first are covered in the full brief. The full report, Water Corporation: Utility Account Brief, is available for USD 499. For a free overview, read the Water Corporation Utility Snapshot.

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