Homegrown small and medium businesses will get better access to Federal Government contracts following fresh changes to procurement rules.

The state’s peak business organisation, Business NSW, has welcomed reforms to Federal Government procurement guidelines which will give preferential treatment to locally owned businesses employing local people.

When local businesses apply for tenders, greater consideration will now be given to businesses which have 50 per cent or more Australian ownership, have Australian tax residency and have their principal place of business in Australia.

Business NSW CEO Daniel Hunter said: “Our members are keen and willing to engage in these tenders but have been caught up in bureaucratic red tape”.

“This announcement must be part of a revisit of policy around government spend in the local SME market,” Mr Hunter said.

“We await further details in the economic benefits paper. Any step that encourages more small businesses is good for business and good for the Australian economy.

“We have members with strong local expertise often losing out to international players for small contracts.

“This is a welcome step in helping address these issues, ensuring that a small or medium business is part of the process to help level the playing field."

The Federal Government’s updated guidance on the Consideration of Broader Economic Benefits in Procurement will incorporate a range of changes, including consideration of weightings, priority outcomes, and contracting. 

“We saw during COVID the risk of not having sovereign manufacturing capabilities in key sectors across our economy, so any change that helps grow these industries will be a welcome one,” Mr Hunter said. 

“Businesses operating locally provide significant economic benefit to their local and national economy.

“In a globally competitive world, where some of our input costs (energy and labour) are higher than the rest of the globe, anything that helps re-balance that equation is good policy.” 

The Federal Government announcement comes off the back of years of consultation and policy development between Business NSW and the NSW Government, with the aim of ensuring the state’s SMEs get a fair crack at winning government work. 

“For the sake of the broader community’s ongoing prosperity, state and federal governments must have a strong focus on creating the best climate for businesses to thrive,” Mr Hunter said. 
 
About Business NSW 
Formerly the NSW Business Chamber, Business NSW is the peak policy and advocacy body which has been representing businesses in NSW since 1826. We represent almost 50,000 businesses.
MEDIA CONTACT: BEN PIKE – 0429 993 822