26 September 2023

Direct purchasing limits rise to $200K

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Departments and Agencies will soon be able to enter into contracts directly with small and medium enterprises (SMEs) for procurements valued up to $200,000 under updates to the Commonwealth Procurement Rules (CPRs).

Minister for Finance, Senator Simon Birmingham said the new rules would reduce tendering costs and work in conjunction with the Indigenous Procurement Policy.

“The updated policy will cut red tape, reduce costs and provide quicker payment times to Australian small businesses who are engaged with Commonwealth Agencies,” Senator Birmingham said.

“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 for Employment, Skills, Small and Family Business, Senator Michaelia Cash said the Government was focusing on reducing the barriers for small and family businesses.

“Many small businesses supply goods and services to the Australian Government,” Senator Cash said.

“This change is all about providing more procurement opportunities to small businesses, so that they can grow and employ more Australians,” she said.

“These policies reflect the 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.”

Senator Cash said the changes also supported the Government’s Supplier Pay On-Time or Pay Interest Policy, which was updated earlier this year and included five-day payment terms for e-invoicing.

“The Government is also progressing implementation of the Payment Times Procurement Connected Policy and delivering on our promise to reduce payment times and improve business cash flow for small businesses,” the Minister said.

The updated CPRs are to take effect from next Monday (14 December).

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