In a major milestone the Minns Labor Government has surpassed $10 billion in annual government spend with NSW-based small and medium businesses.
Delivering on its commitment to support local jobs and businesses across the state, the Government spent $10.1 billion with small and medium enterprises (SMEs) in financial year 2023-24, up from $8.7 billion in 2021-22.
That's almost a quarter of the government's $42 billion spend on goods, services and construction.
In 2023, the Minns Labor Government raised the threshold at which government agencies can directly procure goods or services from small and medium businesses from $150,000 to $250,000.
Following that change, the government awarded more than 1,500 contracts valued between $150,000 and $250,000 to small and medium businesses in 2024. Around 51 per cent of goods and services contracts valued between $150,000 and $250,000 went to small businesses.
Small businesses across the state provide a range of important goods and services to government. This includes supplying office materials and furniture, conducting maintenance and repairs on government buildings, undertaking landscaping services at government facilities, and providing catering and food services at state-owned museums and galleries.
Small businesses are the backbone of the state's economy and directing more of the NSW Government's spend towards them supports local jobs and communities.
As part of the reform package, the Minns Labor Government also reduced red tape, allowing small businesses to provide insurance information once a contract is awarded instead of during the tender process.
The state's 870,000 small businesses make up 97 per cent of all NSW businesses and employ 1.7 million people in NSW.
The result builds on the Minns Labor Government's commitment to support businesses in NSW through a range of measures, including workers compensation reforms.
The Workers Compensation Legislation Amendment Bill 2025 is currently being blocked by the Liberals and Greens in the Legislative Council.
Without the reform, premiums paid by businesses are forecast to increase by 36 per cent over the next three years.
Quotes attributable to Minister for Domestic Manufacturing and Government Procurement Courtney Houssos:
"Small businesses are the backbone of the state's economy. They deliver world-class solutions while supporting families and households and growing the economy.
"Our reforms are helping local small and medium businesses win contracts for more of the government's $42 billion spend - this supports jobs, communities and economic development across NSW.
"We know that NSW businesses are under pressure. These reforms are helping them grow - and our workers compensation reforms will address the rising cost of doing business. Together, this is a recipe for NSW businesses to thrive.
"There is more to do. We will continue to work hard to create even more opportunities to allow small businesses to grow."
Quotes attributable to Minister for Small Business Janelle Saffin:
"Small business plays a vital role in the NSW economy through the products and services they offer but also the more than a million people they employ right across the state.
"The take up of government procurement opportunities is a win-win - the government has a bigger pool to source products and services from, and small businesses have the opportunity to grow and provide new goods and services to their communities.
"We will continue to find new and meaningful ways to support our small businesses in this state to grow and thrive."
Quotes attributable to CEO of Business NSW Dan Hunter:
"Small and medium businesses aren't asking for handouts - they simply want a fair shot at NSW government spend.
"The NSW Government's updated procurement rules are helping level the playing field, delivering major benefits to our communities.
"Having confidence to buy locally from businesses in regional communities - whether that's the local accountant, caterer or construction firm - is crucial to ensuring our collective prosperity.
"Local businesses drive significant economic value both regionally and nationally, and for many emerging operators, securing that first government contract can be a turning point.
"In a global market where Australia faces higher input costs - from energy to labour - any policy that helps restore balance is a win for business, the economy and the community."
Quotes attributable to General Manager Flavours Catering & Events Chris Watts:
"Flavours Catering is a family-owned business with 45 employees based in Artarmon at our production kitchen and offices.
"We've been providing food to NSW Government agencies for more than 10 years. Currently we deliver meals to about 350 jurors every day across four different court locations and work with other agencies as well.
"Working with the Government has been really helpful for us, especially during the COVID-19 pandemic when we provided meals to contact tracers.
"Partnering with the Government during this time not only provided us with the stability we needed but enabled us to keep our team strong and actually grow our team to what it is today."
