Think of a company capability statement as your business's resume, specifically designed for Australian government procurement. It’s a sharp, concise document—usually just one or two pages—that gives a government buyer a snapshot of what you do best. It’s a powerful marketing tool that summarises your core services, your track record, and what makes you different from the competition. It’s designed to make it incredibly easy for a procurement officer to quickly assess your suitability for a potential government contract.

In this guide, you'll learn exactly what to include, the common mistakes to avoid, and how to write a company capability statement that helps you win more government tenders.

Why Your Capability Statement Is a Game Changer

Before we get into the nitty-gritty of what to include, let’s be clear: this document is much more than a box-ticking exercise. For Australian small and medium businesses (SMEs), a killer company capability statement is the strategic key that can unlock the door to lucrative government contracts.

It's your ultimate first impression. Procurement officers are swamped, and they often decide in under a minute whether you're a serious contender or just another PDF in the pile. Your capability statement ensures that first minute counts.

A Strategic Handshake with Government Buyers

Getting noticed in the competitive world of government tenders is half the battle. A procurement officer might be wading through dozens, sometimes hundreds, of submissions for a single opportunity. Your company capability statement is your chance to cut through the noise.

Think of it as a strategic handshake. It’s not your full tender response; it’s a targeted snapshot designed to introduce your business, outline your value, and make them want to learn more.

This is absolutely crucial when you consider the scale of the opportunity. The Commonwealth Government spends over $70 billion annually on procurement. For the 2023-24 period alone, it awarded a staggering $99.6 billion across 83,453 contracts. You can dig into the numbers yourself on the Department of Finance’s official statistics on Australian Government procurement contracts.

A polished, persuasive capability statement is what positions your business to claim a piece of that pie.

Beyond the Tender Shortlist

A well-crafted statement does more than just help you get shortlisted for a specific Request for Tender (RFT). Its value extends far beyond a single bid, giving your business a sustained advantage in the market.

Proactive Marketing: It’s the perfect leave-behind for networking events, meetings with agency staff, and introductions to prime contractors who are looking for reliable subcontractors.

Demonstrating Your Savvy: It proves you understand what government agencies actually care about. When you align your content with core principles like 'value for money', you're showing them you speak their language.

Opening New Doors: In some cases, a powerful capability statement can spark an agency's interest and lead to discussions completely outside of a formal tender process.

A great capability statement doesn’t just list what you do. It frames what you do as a direct solution to a government agency's problems. It’s the bridge between your services and their mission.

Ultimately, this single document can level the playing field, allowing agile SMEs to compete effectively against much larger, more established companies. It's your chance to control the narrative and put your best foot forward—long before you even start writing a full tender response.

For more on getting ready for that next stage, check out our guide on how to address selection criteria like a pro.

The Anatomy Of A High-Impact Capability Statement

Let's build your company capability statement from the ground up, focusing on what government evaluators actually look for. A winning document isn't just a list of services; it's a strategic marketing tool designed to be scanned in under a minute, yet persuasive enough to get you shortlisted.

Think of it like a puzzle. Each section has a specific job to do, guiding the reader from a general sense of your business to a crystal-clear picture of why you’re the right choice. If one piece is missing or poorly written, the whole thing falls apart.

The Critical First Impression: Your Company Overview

This is your elevator pitch, distilled into two or three powerful sentences right at the top. It’s the very first thing an evaluator reads, so it has to immediately establish who you are, what you do, and who you do it for.

Cut the vague corporate jargon. Be direct and impactful.

For instance, instead of "We are a forward-thinking solutions provider," try this: "ABC Engineering is a veteran-owned civil engineering firm based in Western Sydney, specialising in infrastructure project management for local and state government clients."

That single sentence tells the evaluator your industry, location, expertise, and even hints at your social procurement value. It sets the tone for everything that follows. Make it count.

The Heart Of The Document: Your Core Competencies

This is where you detail your key services. The biggest mistake businesses make here is creating a laundry list of everything they can do. Government buyers don't want a jack-of-all-trades; they want a specialist who can solve their specific problem.

Use bullet points. Make it easy to scan. Each point should be a clear, concise statement of what you deliver.

What to include in your Core Competencies:

Problem-focused services: Frame your services as solutions. Instead of "IT Support," use "Cybersecurity Audits for Government Systems."

Keyword alignment: Pull keywords directly from relevant tender documents. If they consistently ask for "agile project management," make sure that phrase is in your list.

Lead with strength: Put your most relevant and impressive capabilities at the very top of the list.

Your core competencies section should directly answer the evaluator's silent question: "Can this supplier actually do the work?"

The Proof In The Pudding: Your Past Performance

This section is where you stop telling them you can do the work and start showing them you’ve done it before. This is arguably the most scrutinised part of your document, as it demonstrates experience and reduces the buyer's perceived risk.

List three to five of your most relevant projects. For each one, include:

Client Name: Prioritise government clients (Federal, State, or Local Council) if you have them.

Project Title: A brief, descriptive title of the work.

Key Outcome: Quantify the result whenever possible. Did you deliver under budget? Ahead of schedule? Improve efficiency by 15%? Numbers talk.

This is your chance to stand out, especially for SMEs. Highlighting successful projects, even smaller ones, is your best strategy to prove you can deliver with the same reliability as the big, established players. You can explore more data on federal government contracts to see just how concentrated the market is.

The "Why You?" Section: Your Differentiators

Why should they choose you over the dozens of other businesses with similar skills? This is where you answer that crucial question. Your differentiators are the tangible things that give you a competitive edge.

This isn't about vague claims like "we provide excellent customer service." It's about specific, provable advantages.

Unique Methodologies: Do you have a proprietary process that delivers results faster or more cost-effectively?

Specialised Expertise: Do you have team members with rare certifications or deep experience in a niche government area?

Social Value: Are you a certified Indigenous business, a social enterprise, or a company with a strong local employment programme? This is a huge factor in government purchasing.

Panel Memberships: If you are on any pre-approved government supplier panels (like the Digital Marketplace), list them here. It shows you've already been vetted.

The Nuts And Bolts: Essential Company Data

This final block is all about compliance and making it easy for procurement officers to do their job. It’s a simple checklist of non-negotiable information. Getting this wrong looks unprofessional and can get your statement tossed aside immediately.

Your data block must include:

Company Name: Your legal trading name.

ABN/ACN: Australian Business Number / Australian Company Number.

Contact Information: Name, title, email, and phone number.

Website: Your professional business website address.

Relevant Codes: Your primary ANZSIC codes.

By structuring your document with these clear, purpose-driven sections, you're making it incredibly easy for evaluators to see your value.

To help you pull all of this together, we’ve broken down the essential components in the table below.

Core Components Of A Government-Focused Capability Statement

Section

Purpose

Must-Have Information

Pro Tip For Government Tenders

Company Overview

To grab attention and state your core purpose in seconds.

Legal name, location, core business function, and target market (e.g., Federal Government).

Mention any social procurement status (e.g., veteran-owned, Indigenous business) right here.

Core Competencies

To list your specific, relevant services.

Bulleted list of 5-8 key services, framed as solutions to government problems.

Use the exact keywords and terminology found in recent government tender documents.

Past Performance

To prove you have a track record of success.

3-5 relevant projects with client names, scope, and quantifiable outcomes.

Prioritise projects with other government agencies—even local councils count.

Differentiators

To explain why you are the best choice.

3-4 unique selling points: special certifications, panel memberships, unique tech, etc.

Focus on what provides tangible value for money to the government, not just what makes you proud.

Company Data

To provide essential contact and compliance details.

ABN/ACN, primary contact details, website, and industry codes (e.g., ANZSIC).

Make this a clean, simple block at the bottom of the page. Don't bury it in a paragraph.

Having this structure makes your document professional and, most importantly, easy for a busy government buyer to assess. To see how these elements fit together visually, you can also check out our company capability statement template for Australia.

Writing Content That Speaks To Evaluators

Having a slick, well-structured capability statement is a great start. But filling it with content that actually persuades a government evaluator? That’s a whole different ball game. This is where you have to stop just listing facts and start telling a story that clicks with their priorities.

Generic corporate jargon and fluffy claims are the fastest way to land your document in the 'no' pile. Government procurement officers are trained to hunt for evidence, not just nice-sounding assertions. Your mission is to translate what your company does into tangible benefits that scream "value for money"—the absolute cornerstone of the Commonwealth Procurement Rules.

From Features To Benefits The Government Way

Here’s a common mistake I see all the time: businesses describe what they do, not what their work achieves for the client. Evaluators don't buy services; they buy solutions to their headaches and outcomes for their agencies.

Let’s take a simple example for a project management firm.

Feature-focused (Weak): "We provide comprehensive project management services."

Benefit-focused (Strong): "We ensure government projects are delivered on-time and on-budget, minimising risk and ensuring full compliance with Commonwealth standards."

See the difference? The second one speaks directly to an evaluator’s biggest worries: deadlines, budgets, risk, and compliance. It shows you get it.

The single biggest shift you can make in your writing is to constantly answer the evaluator's silent question: "What's in it for us?"

Mining For Gold In Tender Documents

The best cheat sheet for writing persuasive content is the tender document itself. A Request for Tender (RFT) isn't just a shopping list; it's a window into the agency's pain points and what they value most.

Before you type a single word, scour the RFT for keywords, repeated phrases, and key objectives. Zero in on the evaluation criteria section. This is literally the scorecard they will use to judge you.

Your job is to weave these exact terms throughout your capability statement. If the RFT hammers on about "stakeholder engagement," "risk mitigation," and "sustainable outcomes," your document better reflect that language. It’s a simple but powerful way to show you’ve done your homework.

Quantify Everything You Can

Numbers cut through the noise. They are your most powerful tool for building credibility because they turn vague claims into concrete, undeniable proof.

Don't just say you did a good job. Show it.

Instead of: "Successfully completed a major IT project for a local council."

Try: "Delivered a new CRM system for the City of Parramatta 3 weeks ahead of schedule, resulting in a 25% increase in staff efficiency."

Instead of: "Managed the construction of a community facility."

Try: "Managed the $4.2M Blacktown Community Hub construction, delivering the project 12% under budget and achieving a 5-star Green Star rating."

This kind of detail proves you're results-driven and understand that success is something you measure—a mindset that government buyers love. Getting good at content writing for websites can really help here, as the same principles of clear, persuasive communication apply directly.

Leveraging AI To Find The Winning Themes

Let's be honest, sifting through a dense, 100-page RFT to find those golden keywords is a huge time sink. This is exactly where AI tools have become a game-changer, especially for SMEs.

GovBid's AI platform is built to do this heavy lifting. It can analyse an entire tender document in minutes, pulling out the key themes, evaluation criteria, and important terminology. It hands you a roadmap for your content, making sure your capability statement is perfectly aligned with the panel's scorecard.

This isn’t about letting a robot write your document. It’s about letting the tech identify what matters, so you can focus on the how—crafting compelling stories and providing the evidence to back them up. Seeing how it all comes together in a finished document can be a huge help, so check out a sample capability statement to see these principles in action.

Aligning With Government-Wide Priorities

Finally, great content goes beyond the specifics of one tender. It shows you understand the bigger picture of what the government is trying to achieve. Weaving these broader objectives into your narrative positions you as a strategic partner, not just another supplier.

Be sure to mention:

SME and Local Industry Participation: If you're an Australian-owned SME, say so proudly. Highlight how you use local suppliers or create jobs in a specific region.

Indigenous Procurement Policy (IPP): Are you a certified Indigenous business? Make that front and centre. If not, mention your commitment to using Indigenous-owned subcontractors.

Sustainability and Environmental Impact: Talk about any green certifications, sustainable business practices, or experience you have with environmentally focused projects.

By layering these themes into your content, you show a deeper understanding of the procurement landscape. You're not just proving you can do the job; you're proving you are the right kind of business for the government to work with.

Designing A Professional And Scannable Document

You’ve poured all this effort into writing compelling content that speaks directly to government evaluators. Great. But if you present it poorly, you risk undermining all that hard work before they’ve even read a word.

Imagine your document in a stack of submissions. A messy, hard-to-read statement gets pushed aside. The goal is to create something professional, clean, and incredibly easy to scan. Procurement officers are always short on time; they need to find your ABN, core competencies, and track record in seconds. Good design makes their job easier, and that reflects well on you.

Maintaining Brand Consistency

Think of your company capability statement as a key marketing asset. It absolutely has to look the part. Brand consistency isn't just about looking good; it builds trust and makes your business seem professional and well-established.

Make sure your document is instantly recognisable as yours:

Logo: Your company logo needs to be prominent. Stick it in the top-left or top-right corner where it can’t be missed.

Colour Palette: Use your official brand colours for headings, highlights, and any other design touches. This is not the time to get creative with new colours.

Font: Use the same font family from your website and other corporate documents. It creates a cohesive, professional feel.

This isn’t about being flashy. It’s about presenting a unified front that reinforces your company’s identity at a single glance.

The Power of Clean and Scannable Formatting

A solid wall of text is an instant turn-off for a busy evaluator. Your design choices should be all about readability, guiding the reader’s eye straight to the most important information. When in doubt, less is more.

A well-designed capability statement uses white space as a tool. It breaks up content, stops the page from feeling cluttered, and makes the whole document more approachable and easier to digest.

To get that clean, scannable layout:

Use Headings and Subheadings: Break your content into logical sections with clear, bolded headings.

Leverage Bullet Points: For lists like your core competencies or what makes you different, use bullet points. They’re a scanner’s best friend.

Choose a Readable Font: Stick to the classics. Professional fonts like Arial, Calibri, or Helvetica in a readable size (10-12pt for body text) work perfectly.

These simple formatting decisions make a massive difference in how your document is received and understood.

Final Checks and File Format

Before you even think about hitting send, a few final checks are critical. For government work, the ideal length for a company capability statement is two pages maximum. A concise, high-impact document will always win over a lengthy one.

Finally, always save and send your capability statement as a web-optimised PDF. This locks in your formatting so it looks the same on every device and keeps the file size small for easy emailing and downloading. Never send an editable Word document—it looks unprofessional and can create a formatting nightmare on the recipient's end.

Common Mistakes That Get You Overlooked

Putting together a strong capability statement is as much about avoiding common traps as it is about including the right information. You could be the most qualified business for the job, but a few simple errors can get your document tossed straight into the 'no' pile. These red flags instantly tell a time-poor procurement officer you might not be ready for government work.

Understanding these blunders is your first step to making the right impression. Just like businesses make rookie errors online, you can also learn from common design mistakes that get companies ignored. The same principles of clarity, customisation, and professionalism apply here.

The "One Size Fits All" Blunder

This is easily the most common and damaging mistake we see. Sending the same generic capability statement to every agency for every opportunity is the bid writing equivalent of using the same cover letter for every job application. It screams low effort.

Government evaluators can spot a generic, non-tailored document a mile away. It immediately tells them you haven't bothered to read their specific Request for Tender (RFT) or truly understand the problem they're trying to solve.

Here’s how you fix it: Always, always tailor your statement. Pull keywords and phrases directly from the RFT's evaluation criteria. Highlight the specific past projects and core competencies that are most relevant to that agency's unique challenge.

Burying The Critical Information

Procurement officers are scanners, not deep readers. They need to find essential details—like your Australian Business Number (ABN), contact info, and key certifications—in seconds. If they have to hunt through dense paragraphs of text for basic data, they’ll get frustrated and simply move on.

Burying this information shows you don't grasp the procurement process or respect the evaluator's time.

A procurement officer shouldn’t need a detective to figure out if you're a legitimate, contactable Australian business. Make it easy for them.

Waffling On For Too Long

More is not better. A five-page capability statement isn't impressive; it's a burden. The sweet spot is a punchy two pages maximum. Anything longer suggests you can't articulate your value proposition concisely—a red flag for your tender writing skills in general.

Long documents often get skim-read or, even worse, put in the "too hard" basket. This is a classic case of confusing capability with capacity. It’s worth taking a moment to understand the crucial difference between capability vs capacity in the world of tendering.

Using Vague And Salesy Language

Government evaluators are completely immune to marketing fluff. Vague, feel-good claims like "we provide innovative solutions" or "we are a customer-centric organisation" are meaningless without cold, hard proof. They are looking for concrete evidence and measurable results.

Overly salesy language just comes across as unprofessional and actually undermines your credibility.

Weak: "We deliver world-class project management."

Strong: "Delivered the $5M Parramatta Light Rail sub-project 10% under budget and 4 weeks ahead of schedule."

Here’s how you fix it: Quantify everything. Use numbers, project names, and specific, measurable outcomes to back up every single claim. This is how you turn empty promises into solid evidence of your ability to deliver value for money.

Your Capability Statement Questions Answered

We get asked a lot of questions about capability statements. It’s one of those documents that seems simple on the surface but has a lot of nuance when it comes to government tenders. Here are quick, direct answers to the most common queries we see from Australian SMEs.

How Long Should A Company Capability Statement Be For A Government Tender?

Keep it short and sharp. For Australian government tenders, the sweet spot is two pages.

Remember, a procurement officer is likely reading dozens of these. They don’t have time to wade through a novel about your business. A concise, powerful document that gets straight to the point is far more effective than a lengthy one that just gets skimmed. This length gives you enough room to outline your core services, prove your track record, and show your key differentiators without overwhelming them.

But there's one critical rule: always check the Request for Tender (RFT) documents. If they specify a page limit, hitting that number is a mandatory requirement.

Should I Create A Different Capability Statement For Each Tender?

Yes. One hundred percent, yes. Treating your company capability statement like a generic brochure is one of the fastest ways to get overlooked.

Think of it this way: you wouldn't send the same cover letter for every single job you apply for. While you should absolutely have a comprehensive 'master' version ready to go, you must tailor a specific version for every tender you submit.

Customising your document shows the evaluation panel you've actually read their requirements and understand their needs. Here’s what that looks like in practice:

Mirror Their Language: Weave in the specific keywords and terminology you find in the RFT.

Prioritise Relevance: Reorder your case studies and past projects to put the most similar and relevant work right at the top.

Align Your Skills: Tweak the descriptions of your core competencies to directly solve the problems the agency has outlined.

What Is The Difference Between A Capability Statement And A Full Tender Response?

This is a crucial distinction that trips a lot of people up. A company capability statement is your business's resume. It’s a high-impact marketing document designed to give a quick, compelling overview of who you are and what you do best. You’ll use it for introductions, networking events, and early-stage supplier interest calls.

A full tender response, on the other hand, is the detailed, formal submission. It’s where you methodically answer every single question, address all the evaluation criteria, and prove you meet every compliance rule in the RFT. Your capability statement might be included as an appendix, but the tender response is the main event.

Think of it like this: your capability statement gets you the interview. Your tender response wins you the contract.

How Often Should I Update My Master Capability Statement?

As a rule of thumb, review and refresh your master document every six months. More importantly, you should update it immediately after any significant business achievement. You always want to be ready to jump on an opportunity with your best foot forward.

Any of these events should trigger an immediate update:

You’ve just completed a major project, especially for a government client.

You’ve earned a new industry certification or accreditation.

Your business has been appointed to a new government supplier panel.

A new star player with specialised skills has joined your team.

Keeping this master document fresh makes the process of tailoring it for each tender so much faster. It’s a simple bit of housekeeping that ensures you’re always presenting the strongest, most current version of your business.

Ready to create a capability statement that wins government tenders? Let GovBid's AI analyse tender documents to find the keywords and evaluation criteria that matter most. Browse 1,000+ active government tenders at GovBid.com.au.