Changes to Commonwealth procurement rules that take effect today will create more opportunities for small business to win government contracts, says the Australian ³ΤΉΟΝψ and Family Enterprise Ombudsman, Bruce Billson.
βThere is no substitute for customers and itβs great to see the Commonwealthβs commitment to be a bigger customer for small businesses,β Mr Billson said.
βI warmly welcome todayβs announcement by ³ΤΉΟΝψ Minister Julie Collins and the Finance Minister Katy Gallagher.β
βAn important element to ensuring these changes make a real difference will be to provide capacity-building contracts that will enable smaller businesses to really benefit from the contracts to grow their business.β
The changes will mean that 20 per cent of Commonwealth procurements by value must be sourced from small and medium enterprises. This doubles the existing target of 10 per cent.
βThe Government spends about $70 billion a year on contracts, meaning at least $14 billion of this work will go to small and medium businesses,β Mr Billson said.
Procuring agencies will also be encouraged to approach multiple suppliers when they are sourcing from panels which will improve competition and provide more opportunities for smaller businesses to apply for government work.
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