Queensland is the first state to set a target to do business with more local Queensland small and medium sized businesses (SMEs).
Minister for Employment and Small Business Shannon Fentiman announced today at manufacturing business Macrack in Brisbane today that the Palaszczuk Government was leading the way in backing local businesses by setting a minimum target to engage SMEs for goods and services.
"Queensland is home to more than 438,000 small businesses and we want to help them to grow and succeed," Ms Fentiman said.
"And now more than ever they need our support.
"That's why we have introduced a target of 25 per cent of all government purchases to be from Queensland small and medium sized businesses from July 1.
"The target will be extended to 30 per cent by 30 June 2022.
"The Palaszczuk Government is leading by example.
"We're the first state to set a target which is well above the Commonwealth target of 10 per cent.
"This target is expected to provide around $4.1 billion from the Queensland government to Queensland SMEs from next financial year."
The Minister said the SME sector was crucial to the economy, accounting for 99 per cent of businesses that employ Queenslanders.
"We have a plan for Queensland: Unite and Recover," Ms Fentiman said.
"It's about supporting Queensland businesses and industry as well as supporting Queensland jobs."
Member for Mansfield Corrine McMillan said More than 1.4 million Queensland jobs were supported by SMEs.
"Companies like Macrack in my local community need support to grow," she said.
"They are critical to the post COVID-19 recovery.
"The Palaszczuk Government's targets for procurement spending reinforce the government's commitment to the sector."
This latest measure follows the Palaszczuk Government's immediate payment policy for all valid invoices, which will continue until the impact of COVID-19 eases.
"We are acting to improve the cash flow of SMEs as soon as possible and give the smaller operators hope for long-term recovery," she said.
Brisbane manufacturing business Macrack is one Queensland business who has provided a Pallet Racking installation for the Queensland government.
Director at Macrack, Joanne Glasson, welcomed today's announcement which will support more Queensland businesses.
"We are proud to be a local home-grown manufacturing business," Mrs Glasson said.
"Today's commitment from the Queensland government will support more local businesses like ours and will also assist the Queensland manufacturing industry."
The On-time Payment Policy (OPP), reducing payment terms for small businesses from 30 to 20 days will commence after 1 July 2020 and support the interim immediate payment policy which will apply to all businesses to support the economic recovery from COVID-19.
Small businesses are encouraged to enter their details on the Small Business Register to ensure they can be identified in payment systems. To register visit www.business.qld.gov.au
The new measures are part of the implementation of the Queensland Small Business Procurement Action Statement.
The Palaszczuk Government's plan for recovery: Unite and Recover for Queensland Jobs includes:
- $50b Infrastructure Guarantee—maintaining the current State infrastructure investment program at $51.8 billion over the next four years 2019-20 to 2022-23.
- $400m Accelerated Works Program—to support our regions with a substantial capital and maintenance roads program.
- $200m Works for Queensland COVID Recovery Package—to support local jobs and Local Governments with funding for building productive infrastructure.
- $11.25m Household Resilience Program—to support local industry by improving the resilience of North and Central Queensland homes against natural disasters
- $50m to support Queensland's Tourism Industry—to fast track tourism projects and assist our national tourism icons
- $100m Small Business Adaption Grants Program—to help sustain small businesses so they can succeed post-COVID-19.
- $7m Domestic Tourism Campaign—to support jobs and businesses in our tourism regions by marketing Queensland as the destination of choice for Australian travellers.
- $50m Making it for Queensland—attracting industry to grow the Queensland's advanced manufacturing capacity, particularly biomedical and health
