Overhaul of Commonwealth Procurement Rules to benefit small business, climate

Ellen RansleyNCA NewsWire
Not Supplied
Camera IconNot Supplied Credit: News Corp Australia

The rules governing Commonwealth spending will be changed to double the opportunities for small and medium business from Friday.

Under major changes to procurement rules, up to 20 per cent of the government’s $70b average yearly spend on contracts will now be offered to small and medium businesses, up from 10 per cent.

The Albanese government says the changes to the Commonwealth Procurement Rules, which come into effect on Friday, will help small and medium businesses grow while simultaneously bolstering the wider economy.

Finance Minister Katy Gallagher and Small Business Minister Julie Collins said doubling the target of procurement-by-value from small and medium businesses from 10 to 20 per cent was a major part of their commitment to the Buy Australian plan.

Camera IconThe federal government will increase its small and medium business procurement-by-value target from 10 per cent to 20 per cent – estimated to benefit those enterprises up to $14b. NCA NewsWire/Sarah Matray Credit: News Corp Australia

The ministers said the changes to the Commonwealth procurement rules would also enable small and medium businesses to speed up their recovery from the pandemic and natural disasters, as well as helping them in the face of rising costs.

It could ultimately help small and medium businesses to employ more staff.

The revised CPRs also now require that procuring officials consider what a procurement would mean for climate change when undertaking the core value for money assessment.

It’s expected the changes will help deliver on the government’s plan to reduce emissions by 43 per cent by 2030.

Camera IconSmall Business Minister Julie Collins said the changes to the procurement rules were part of the Albanese government’s commitment to small business. Nikki Davis-Jones Credit: News Corp Australia

Senator Gallagher said the measures were targeted at “making it easier” for small businesses to bounce back and thrive.

“This announcement is a clear demonstration that we won’t waste time when it comes to taking practical steps to support businesses to grow, create more jobs and ultimately help to boost the Australian economy,” she said.

“This is the first step in delivering on our Buy Australian Plan and we will have more to say about implementing this key element of Labor’s plans to build a future made in Australia.”

Ms Collins said small businesses were the engine room of the Australian economy.

“Small businesses shouldn’t be locked out from opportunities to gain government contracts just because they might not have the leverage of bigger businesses,” she said.

“The swift delivery of these changes shows the Albanese government is serious about implementing our commitment for a better deal for small business.”

The CPRs will also now encourage entities to approach multiple suppliers when procuring from a panel arrangement in a bid to improve competition, drive value for money outcomes, and ensure a better deal for the taxpayer.

Originally published as Overhaul of Commonwealth Procurement Rules to benefit small business, climate

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