The Queensland Public Service (QPS) is to be required to direct 25 per cent of its purchases for goods and services to small and medium sized business (SME) as from 1 July this year.
Announced by the Minister for Employment and Small Business, Shannon Fentiman, the new purchase policy is to be in place until at least June 2022 when it will be increased to 30 per cent.
Ms Fentiman said Queensland was home to more than 438,000 small businesses and now, more than ever, they needed Government support.
“We’re the first State to set a target which is well above the Commonwealth target of 10 per cent,” Ms Fentiman said.
“It is expected to provide around $4.1 billion from the Queensland Government to Queensland SMEs from the next financial year.”
She said the SME sector was crucial to the economy, accounting for 99 per cent of businesses that employed Queenslanders.
“We have a plan: Unite and Recover. It’s about supporting Queensland businesses and industry as well as supporting Queensland jobs,” she said.
MP for Mansfield, Corrine McMillan said more than 1.4 million Queensland jobs were supported by SMEs.
She said the latest measure followed the Immediate Payment Policy for all valid invoices, which would continue until the impact of COVID-19 eased.
“We are acting to improve the cash flow of SMEs as soon as possible and give the smaller operators hope for long-term recovery,” Ms McMillan said.
Ms Fentiman said the new measures were part of the implementation of the Queensland Small Business Procurement Action Statement.