Changes to the Federal Government procurement rules
A quick news update about the changes to the Federal Government procurement rules.
“Carpe Opportunitatem!”: Australian Small Businesses and the New Procurement Landscape
Once our calendars flip to July 1, 2024, Australian small businesses stand at the threshold of a huge opportunity. The federal government’s procurement rule changes are not just a shift in policy, but a siren call for small businesses to step up and play a crucial role in Australia’s economic story.
The Rule Changes – the $74.5 billion opportunity
Yep. That’s what the Australian Government spends on goods and services. Every. Single. Year.
The government has made a strategic move to grow the small business sector by mandating that 40% of lower-value procurement must come from small businesses – 40%!
This significant increase from previous targets is an absolute game-changer, offering a larger slice of the pie to the engines of innovation and agility (yes that’s us, small businesses!) within the economy.
Why It Matters
For small businesses, this isn’t just about numbers; it’s absolutely about recognition and opportunity, which I love so much. The government is acknowledging the value that small businesses bring to the table: diversity, flexibility, and the kind of innovative thinking that often gets lost in larger operations.
The SME Exemption Threshold: a game-changer for small business!
One of the most important changes is the increase in the SME exemption threshold to $500k. This means that for contracts up to $500k, the red tape is significantly reduced (happy days!), allowing smaller businesses to bid with much less bureaucratic red tape.
A Competitive Edge
With these changes, small businesses are no longer just participants but preferred players in the procurement process. This gives you a competitive edge, especially in a landscape where small businesses often feel overshadowed and intimidated by larger corporations.
Getting Ready to Bid
The time to prepare is now – not tomorrow. Not next month. Not next quarter!
Forward-thinking small businesses should be gearing up, understanding the new rules, and aligning their offerings with government needs. Many small businesses see a huge divide between Government contracts and their own small business; a divide filled with questions, what-ifs, and what-do-we-do next???
Gov Ready exists to bridge that divide, and I love how we do it!
Final Thoughts
These rule changes should be a beacon for small businesses to step into a larger arena. With the government as a potential client, the opportunities for growth, stability, and success are substantial. It’s a moment for your small businesses to shine, to show that you’re not just the backbone of the economy, but its future as well.
Thanks everyone, please contact us if you have any questions.
Thanks,
Thomas & The Team