NSW Government eases procurement rules for small business

The NSW Government has amended state procurement rules with a view to making it easier for small and medium businesses to sell to the Government.

The maximum amount government departments and agencies can use to purchase goods and services directly from a small or medium businesses has been raised from $150,000 to $250,000.

The Government has also adopted a proposal from the NSW Small Business Commissioner and will no longer require small businesses to submit proof of insurance when they tender. Instead, proof of insurance will only be required when a contract is awarded.

Each year the NSW Government spends over $9 billion on goods and services from 46,000 small and medium businesses in NSW and said it wants to increase these figures.

A Ministerial Direction was issued to the NSW Procurement Board and requires agencies to implement the policy change no later than 31 December 2023.

Services highlighted by the government that small businesses could provide include:

• Catering, food and beverage services at state-owned museums, galleries, venues and sites,
• Office supplies and furniture for government offices and buildings,
• Maintenance and repairs, including ground maintenance and landscaping at government facilities,
• The development of training resources, including for health and wellness support.

The changes do not apply to construction businesses.

For more information, visit https://buy.nsw.gov.au.

Read the Commission's guide and complete the free course on Selling to the NSW Government.