New procurement rules support Aussie SMEs

The federal government is updating the Commonwealth Procurement Rules (CPRs) to enable small and medium businesses to engage with Commonwealth agencies, to support Australia’s economic recovery. The updates will streamline processes and reduce costs for small and medium enterprises (SMEs) in the government procurement market.

As part of the new rules, an exemption will allow agencies to directly engage SMEs for procurements valued up to $200,000, which will reduce tendering costs and work in conjunction with the Indigenous Procurement Policy.

Minister for Finance Simon Birmingham said the updated policy will cut red tape, reduce costs and provide quicker payment times to Australian small businesses who are engaged with Commonwealth agencies.

“We expect these changes will put more small businesses in the mix for government procurement work, and that will help them grow their own operations and create more jobs for Australians,” Minister Birmingham said.

Minister for Employment, Skills, Small and Family Business Michaelia Cash said the change is about providing more procurement opportunities to small businesses, so that they can grow and employ more Australians.

“These policies reflect the Morrison government’s commitment to support small and family business and ensure that it continues to play a critical role in driving Australia’s economic recovery from the COVID-19 pandemic,” Minister Cash said.

These changes also support the government’s Supplier Pay On-Time or Pay Interest Policy, which was updated earlier this year and includes five-day payment terms for e-invoicing. The government is also working to implement the Payment Times Procurement Connected Policy.

The updated CPRs take effect from 14 December 2020 and can be found on the Department of Finance website.

Image credit: ©stock.adobe.com/au/Prostock-studio