Finance Minister Bill Marmion said the initiative would ensure businesses which benefited from State Government contracts were good corporate citizens.
"This is about government business units working together to ensure the best outcome for taxpayers," Mr Marmion said.
"Prior to a business being listed to supply to the Government, they will now be checked to ensure all taxation commitments are being met.
"This sharing of information, with the consent of the business applying for Government work, is designed to reduce the risk of the Government contracting with businesses which are not meeting their taxation obligations."
Although in its early stages, the policy change has already demonstrated its effectiveness in managing risk, with an improvement in the payment timeliness of outstanding taxation obligations by suppliers being documented.
"The Liberal National Government is continuing to pilot innovative practices to ensure those businesses paying their fair share of tax and doing the right thing are being rewarded," the Minister said.
The Department of Finance is also exploring the possibility of expanding the program to the building and construction industry, for those businesses tendering for Government work with the Building Management and Works.
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