The state’s peak business organisation, Business NSW, has welcomed changes to NSW Government procurement rules that will unlock opportunities for small to medium sized enterprises (SMEs).

The NSW Government has announced it will increase the threshold for direct engagement with SMEs on government contracts from $150,000 to $250,000.

NSW Premier Chris Minns joined Minister for Finance Courtney Houssos at Business NSW member Young Henrys Brewery in Newtown today to make the announcement.

Business NSW CEO Dan Hunter says the change is a win for SMEs across NSW.

“This move opens the door wide open for SMEs to get a greater slice of the action on government contracts without the hassle of tedious tender processes,” said Mr Hunter.

“With the threshold raised, SMEs will be able to engage directly on contracts up to $250,000 – this will make it easier for smaller businesses to access larger contracts, and ultimately will help NSW’s small businesses to grow.

“We are pleased to see requirements for businesses to be insured will only come into effect on confirmation that a contract has been won. We know businesses have been deterred from bidding for government contracts in the past due to the need to secure hefty insurance coverage - regardless of whether they win the contract. 

“Currently 46,000 SMEs directly engage with government contracts and this announcement is a positive signal to government departments to increase their engagement with small business in NSW.

“NSW clearly leads the country on government procurement with SMEs and this announcement will help to keep it that way.”

The NSW Government’s current engagement with SMEs accounts for expenditure exceeding $9 billion.

Today’s announcement applies to small and medium size businesses with less than 200 employees.