A fifth of the federal government’s annual $70 billion of goods and services purchases must be awarded to small and medium-sized enterprises following changes to the commonwealth procurement rules. This represents a doubling of the previous quota for contracts with SMEs.
It’s a key element of Labor’s Buy Australia plan, which formed part of its 2022 election campaign. The policy is underpinned by the belief that the government’s procurement policy is “a major economic lever available to drive the economic recovery from COVID-19”.
A Future Made in Australia office will also be established within the Department of Finance and backed by new laws.