Business

Billions going to small and medium businesses

Small and medium businesses are front and centre of the NSW Government’s focus when it comes to ensuring they get a larger share of the procurement pie.

New figures reveal the Government spent around $34 billion on goods, services and construction in 2020/21, with almost $8 billion spent with SMEs over the financial year.

The new data comes after the Government enhanced the way suppliers were classified, resulting in a more accurate and transparent snapshot of how it supported small and medium businesses.

Minister for Finance and Employee Relations Damien Tudehope said the 2020/21 data showed more than 49,000 SMEs were engaged in government procurement contracts.

“Small businesses have experienced one of their most challenging periods ever – whether it was enduring droughts, floods, bushfires, Covid and a mouse plague, they have shown their resilience and strength. This is why we need to get it right when it comes to supporting them,” Mr Tudehope said.

“By generally excluding subsidiaries of multinationals, joint ventures and special purpose vehicles, this data provides a clearer picture on how many SMEs are engaging with Government and through this process of refinement, we are ensuring we can better understand the true impact of how our policies are benefiting SMEs.”

The NSW Government is committed to increasing opportunities with SME businesses to access government work, with measures in place including: 1. The SME and Regional Procurement Policy which allows agencies to buy goods and services directly from an SME or regional supplier for all procurements up to $150,000. 2. Business Connect, which offers independent business advice to help small businesses build their capability to supply to government.

3. Tender Support Program, which is providing online courses through TAFE and a written guide to help small businesses learn how to tender for NSW Government contracts. 4. Aboriginal Procurement Policy, which aims to deliver increased opportunities for Aboriginal businesses, which also benefit from the SME & Regional Procurement Policy, to secure NSW Government work. 5. A small business exemption for government agencies to purchase construction services valued up to $50,000 directly from a small business, even where there is a whole of government arrangement in place.

“It’s important they have access to Government work opportunities and we need to try harder when it comes to making sure they’re at the top of the list when we’re considering which suppliers to engage,” Mr Tudehope said.

Minister for Small Business Eleni Petinos said the data is a reminder of the pivotal role played by SMEs in NSW’s economy.

“Small businesses are the engine room of our economy and the lifeblood of so many communities, which is why we are committed to awarding more contracts to them,” Ms Petinos said.

“We want to make it easier for SMEs to work with government and have taken steps to save them time, including creating the NSW Supplier Hub to ensure suppliers can be easily found, requiring faster payments for goods and services, and implementing e-invoicing.

“Our message to SMEs is clear – we want to ensure you receive a fairer share of procurement spend, so you can continue to deliver critical services and support local jobs.”

Businesses can register and search for opportunities to supply to the NSW Government at: https://suppliers.buy. nsw.gov.au/

Covid business support package released

Businesses, workers and the performing arts across NSW are all set of more than $1 billion to help those that have been hardest hit by the Omicron wave.

The package includes small business to buy rapid antigen tests (RATs) to help keep their workers safe and a new Small Business Support Program to assist businesses to help keep their workers employed.

Premier Dominic Perrottet said while case numbers are now declining, the NSW Government is determined to support those businesses that have been most affected during this wave of the pandemic.

“As part of the package, we are introducing the Small Business Support Program to help support businesses that experienced the worst effects of the Omicron wave,” Mr Perrottet said.

“We are also providing support to business to help reimburse the cost of rapid antigen tests for their workers, extending the Commercial Landlord Hardship Grant and delivering additional funding for the performing arts sector.

“This targeted package provides support for businesses who issues and the immediate economic impacts of the Omicron outbreak.

“NSW is tracking better than expected and And as we did with earlier recoveries, we will come through this recent challenge stronger than ever.

“We’ve got the backs of businesses, as we have throughout this entire pandemic.”

Deputy Premier and Minister for Regional NSW Paul Toole said the support package would provide a statewide response to the Omicron wave of the pandemic, targeting those businesses that need it the most.

“Our regions have felt the impacts of Omicron, and it’s critical we give them a helping hand to recover and get local economies humming again,” Mr Toole said.

“This package shows that the NSW Government continues to have the back of residents and businesses in the bush with practical measures to ensure they keep their workers safe and businesses open.”

Treasurer Matt Kean said we know some businesses in NSW have faced challenges and it is vital we get them the support they need to workers in jobs.

The program provides eligible businesses a lump sum payment of 20 per cent of weekly payroll with a minimum payment of $500 per week and a maximum payment of $5,000 per week.

In addition, the existing Small Business Fees, Charges and RAT Rebate will be increased by 50 per cent from the current $2,000 limit to $3,000 and employing businesses will be able to use the rebate to obtain RATs. This will support worker availability by helping reduce costs to small businesses and enabling healthy staff who have been exposed to Covid-19, but test negative, to return to work.

For more information please visit nsw.gov.au.