Recent changes to federal government procurement rules have been hailed as a significant step toward supporting locally owned small businesses, enhancing their access to government contracts.
Business NSW has expressed strong support for the revised procurement guidelines, which now give preference to small and medium enterprises (SMEs) that are locally owned and hire Australian workers. The updated rules ensure that businesses with at least 50% Australian ownership, tax residency, and a primary business location in Australia are given greater consideration during the tendering process.
Daniel Hunter, Chief Executive of Business NSW, emphasized that the reform will benefit local businesses by removing bureaucratic hurdles that previously hindered their participation in government tenders. “This announcement is a critical part of rethinking the way government spending interacts with the local SME sector,” Hunter explained. “We are eager to engage with these new opportunities, but our members have often faced red tape that left them out of the bidding process.”
Hunter further highlighted that many members of Business NSW, with deep local expertise, had been overlooked in favor of international competitors, even for smaller contracts. The reform, he believes, helps create a fairer environment for Australian SMEs, ensuring they can compete on equal footing with global companies.
The updated procurement guidelines will now incorporate key considerations such as weightings, priority outcomes, and contracting approaches to prioritize the economic benefits of local businesses. The reforms are part of a broader effort to bolster the Australian economy by encouraging domestic production and job creation.
Hunter pointed to the challenges faced during the COVID-19 pandemic, where the lack of sovereign manufacturing in critical sectors highlighted the risks of over-reliance on international supply chains. “Any move that strengthens local industries will undoubtedly benefit the Australian economy,” he stated. “In a global marketplace, where energy and labor costs are higher in Australia than in many other countries, policies that support local businesses are essential.”
The changes come after extensive consultation and collaboration between Business NSW and the state government. The goal has been to create a fairer, more favorable environment for small businesses to secure government contracts. Hunter concluded, “For the prosperity of the broader community, both state and federal governments must prioritize policies that nurture the growth and success of Australian businesses.”
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