The federal government’s small and medium business procurement targets will be pushed to more ambitious levels and buyers will need to seek extra consultancy competition under changes announced by Finance minister Katy Gallagher on Monday.
The threshold for going directly to smaller suppliers will also more than double to $500,000, while the bar for all procurements requiring an economic benefit assessment will drop from $4 million to $1 million.
The raft of changes will encourage more sourcing of smaller suppliers and put a more strategic lens on their involvement, according to the Albanese government, which had been under pressure to drive more impactful reforms.
Want to know how this story ends?
Become a subscriber for complete access to all stories on InnovationAus.com and our daily newsletter.
Do you know more? Contact James Riley via Email.