Revision of Commonwealth Procurement Rules

The rules governing Commonwealth spending will be changed from Friday to double the opportunities for small and medium-sized businesses.  Photo: Nikki Davis-Jones
The rules governing Commonwealth spending will be changed from Friday to double the opportunities for small and medium-sized businesses. Photo: Nikki Davis-Jones

Commonwealth spending rules will be changed from Friday to double the opportunities for small and medium-sized businesses.

Due to sweeping changes to procurement rules, up to 20 percent of the average annual government spending of $70 billion in contracts will now be tendered to small and medium-sized businesses, an increase of 10 percent.

The Albanian government says the changes to the Commonwealth Procurement Rules, which come into effect on Friday, will help small and medium-sized businesses grow while strengthening the economy in general.

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Treasury Secretary Katy Gallagher and Small Business Secretary Julie Collins said doubling the sourcing-by-value target of small and medium-sized businesses from 10 to 20 percent was a key part of their commitment to the Buy Australian plan.

The federal government will increase its procurement target for small and medium-sized businesses from 10 percent to 20 percent, which is estimated to benefit those companies up to $14 billion.  Image: NCA NewsWire/Sarah Matray
The federal government will increase its procurement target for small and medium-sized businesses from 10 percent to 20 percent, which is estimated to benefit those companies up to $14 billion. Image: NCA NewsWire/Sarah Matray

Ministers said the changes to Commonwealth procurement rules would also enable small and medium-sized businesses to accelerate their recovery from the pandemic and natural disasters, as well as help them deal with rising costs.

It could ultimately help small and medium-sized businesses to hire more staff.

The revised CPRs now also require contracting officials to consider what a tender would mean for climate change when conducting the core value for money assessment.

The changes are expected to help achieve the government’s plan to reduce emissions by 43 percent by 2030.

Small Business Minister Julie Collins said the changes to the procurement rules are part of the Albanian government's commitment to small businesses.  Photo: Nikki Davis-Jones
Small Business Minister Julie Collins said the changes to the procurement rules are part of the Albanian government’s commitment to small businesses. Photo: Nikki Davis-Jones

Senator Gallagher said the measures were intended to “make it easier” for small businesses to bounce back and prosper.

“This announcement is a clear demonstration that we will not be wasting time when it comes to taking practical steps to help businesses grow, create more jobs and ultimately boost the Australian economy,” she said.

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

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

“Small companies should not be excluded from opportunities to win government contracts just because they may not have the influence of larger companies,” she said.

“The rapid delivery of these changes shows that the Albanian government is serious about implementing our commitment to a better deal for small businesses.”

The CPRs will also now encourage entities to approach multiple suppliers when purchasing a panel deal in an effort to improve competition, get value for money and ensure a better deal for taxpayers.

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